The pandemic has put the health care industry under a global spotlight. Biotechnology and big pharmaceutical firms are front and center as the world races toward a vaccine for COVID-19. There may be many winners, and there may be a few losers, but the current crisis has reminded the world that we are living in a new age of science.
Cures for chronic infectious diseases, targeted cancer therapies and gene editing are just a few of the breakthroughs made in the past decade. And more discoveries are coming. “The speed of science is increasing,” says Joshua Riegelhaupt, assistant manager of Baron Health Care fund. “That’s why we think this is the century of biology,” he says.
These developments are improving the standard of care, says Julia Angeles, an investment manager with a specialty in health care at investment firm Baillie Gifford. “We understand more what drives diseases, and we’re able to develop drugs that are more precise, more efficient and more effective,” she says. The investing landscape is changing, too. Many health care stocks that were once considered defensive, nest-egg investments have morphed into growth stocks. Investors can bank on more change. We are in “the early innings of transformative global change due to innovation in health care,” says Riegelhaupt.
<strong>With that in mind, we set out to find stocks poised to follow new approaches in health care that can save costs and improve outcomes.</strong>
Stock prices and other data are through June 12.