Three stocks to profit from the healthcare innovation revolution
Anthony Ginsberg, manager of the HAN-GINS Indxx Healthcare Innovation UCITS ETF, picks three of his favourite healthcare stocks to buy now.
A revolution is upon us. Innovation in healthcare now ranks among the global economy’s most dynamic, fast-growing sectors. Artificial intelligence (AI), robotics and improved internet services – thanks to advances in Cloud computing and 5G wireless connectivity – are dramatically lowering costs. Covid-19 should give the healthcare innovation sector further impetus as efforts to alleviate this crisis and prevent future viral outbreaks intensify.
New diagnostic tools are making it easier and cheaper to identify and treat diseases. They are helping healthcare professionals to identify (or rule out) diseases such as coronavirus cases quickly. Such technological tools are also providing remote (virtual) care, stopping the virus spreading more widely. We expect the latest outbreak to lead to more investment and demand for online, or virtual, medical services (known as telemedicine or telehealth) as people seek to limit their interactions with hospitals.
Medical wearables will increasingly help in the fight against such epidemics too. They can enable doctors to monitor vital signs with far less contact and are particularly useful for taking temperatures, blood sugar levels, respiratory rates and pulse readings. This data can immediately be read and analysed by healthcare workers.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
AI and Big Data can accurately diagnose numerous diseases better than the average medical professional. This is particularly true in cases where staff have little experience in obscure diseases. Google is already investing heavily in this area. It has purchased anonymous patient records and late last year paid over $2bn for Fitbit, which makes gadgets to measure, among other things, steps walked per day and sleep quality.
One company set to benefit from this backdrop is Regeneron Pharmaceuticals (Nasdaq: REGN), a biotechnology group leading the race to develop a vaccine for Covid-19. Regeneron has identified hundreds of virus-neutralising antibodies and has been working on producing an antibody cocktail therapy on a large scale. Regeneron is one of the top two holdings in our exchange-traded fund (ETF).
The da Vinci of surgical robots
America’s Intuitive Surgical (Nasdaq: ISRG) develops, manufactures and markets surgical robotic products, most notably the da Vinci Surgical System.
This was one of the first robot-assisted, minimally invasive surgical systems cleared by the federal Food and Drug Administration. Today, a family of da Vinci systems is used by surgeons in all 50 US states and 66 countries around the world.
The global surgical-robots market is expected to grow by around 14% a year to $17bn by 2025. Higher demand for minimally invasive procedures should underpin this growth. Over one million surgeries were performed using da Vinci systems in 2018 alone. It is our fourth-largest holding.
A top biological engineer
Edwards Lifesciences (NYSE: EW) represents the key subtheme of biological engineering in our ETF. It is an American medical equipment company specialising in artificial heart valves. It is mostly known for a transcatheter aortic heart valve made of bovine tissue within a collapsible stainless-steel stent.
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
Anthony Ginsberg is manager of the HAN-GINS Cloud Technology UCITS ETF
-
Chase slashes its easy-access savings rate – is it time to switch?
The Chase easy-access savings account has proved popular with savers thanks to its competitive rate and bonus deals. But, as the rate has dropped, has it lost its charm?
By Katie Williams Published
-
Global housing markets bounce back
From Canada to the US, global housing markets have surpassed crises and made a comeback
By MoneyWeek Published
-
Halifax: House price slump continues as prices slide for the sixth consecutive month
UK house prices fell again in September as buyers returned, but the slowdown was not as fast as anticipated, latest Halifax data shows. Where are house prices falling the most?
By Kalpana Fitzpatrick Published
-
Rents hit a record high - but is the opportunity for buy-to-let investors still strong?
UK rent prices have hit a record high with the average hitting over £1,200 a month says Rightmove. Are there still opportunities in buy-to-let?
By Marc Shoffman Published
-
Pension savers turn to gold investments
Investors are racing to buy gold to protect their pensions from a stock market correction and high inflation, experts say
By Ruth Emery Published
-
Where to find the best returns from student accommodation
Student accommodation can be a lucrative investment if you know where to look.
By Marc Shoffman Published
-
Best investing apps
We round up the best investing apps. Looking for an easy-to-use app to help you start investing, keep track of your portfolio or make trades on the go?
By Ruth Emery Last updated
-
The world’s best bargain stocks
Searching for bargain stocks with Alec Cutler of the Orbis Global Balanced Fund, who tells Andrew Van Sickle which sectors are being overlooked.
By Andrew Van Sickle Published
-
Revealed: the cheapest cities to own a home in Britain
New research reveals the cheapest cities to own a home, taking account of mortgage payments, utility bills and council tax
By Ruth Emery Published
-
UK recession: How to protect your portfolio
As the UK recession is confirmed, we look at ways to protect your wealth.
By Henry Sandercock Last updated