Until recently, it had been a lackluster year for the healthcare sector. From high medical utilization squeezing insurers to structural cost pressures and valuation hangovers, medical stocks stocks have lagged much of the broader market this year. But there are some indications that the tide is turning.
The market’s increasingly concentrated tech focus continues to encourage the rotation into overlooked, defensive sectors like healthcare. At the same time, costs are beginning to stabilize, and the U.S. Food and Drug Administration (FDA) has been supportive of the biopharma pipeline, meeting review deadlines and accelerating pathways for novel therapies.
