Perspectives Blog

Specialty pharmaceuticals – The fastest growing category of healthcare spending

Harlan Sonderling, CFA, Senior Healthcare Analyst | January 27, 2014

…mplex industry has developed to manage the delivery and costs of the therapeutic innovations in specialty pharma Healthcare payers are focused on managing specialty pharma spending, their most rapidly growing medical cost The accelerating pace of change and disruptive therapeutic advances create significant opportunities across healthcare delivery Pharmaceuticals are central to the effort to improve medical outcomes and control medical costs. Re…

M&A in healthcare – Out with the old, in with the new?

Harlan Sonderling, CFA, Senior Healthcare Analyst | March 31, 2014

…rived), debt-fueled revenue and earnings growth has been prized. Similar acquisition sprees are ongoing in other healthcare subsectors such as managed care and pharmaceutical distribution, though none with the tax inversion strategies prominent in specialty and generic pharmaceuticals. Nothing above is boasting of our recent investment success in deal-driven specialty and generic pharmaceuticals (or other healthcare subsector) investments, nor to…

Death, taxes and Medicaid expansion

Harlan Sonderling, CFA, Senior Healthcare Analyst | September 8, 2014

…y premiums from the state. The health plan is responsible for providing for all or most of the recipient’s healthcare needs. The plans accept the risk of managing total costs, subject to negotiated adjustments for developments like the expensive new hepatitis C medicine. A small minority of Medicaid managed care simply provides administrative services and healthcare provider network access to the state, which assumes all the risk. About 60%…

Antibiotic resistance – What it means for drug manufacturers, hospitals and diagnostic companies

Columbia Management, Investment Team | May 12, 2014

Overuse of antibiotics has led to new classes of “super bugs” that are resistant to current or traditional antibiotic treatments. Legislative and economic incentives are driving innovation and adoption of new technologies in the antibiotic resistance category across the investable healthcare spectrum. We anticipate increased new drug development and improvements in the identification and treatment of bugs and “super bugs.” By Aaron Reames, Wal…

Second quarter U.S. corporate earnings wrap-up

Tom West, Director of Equity Research | August 18, 2014

Non-cyclical sectors slightly out performed cyclical sectors during the quarter. In technology, the U.S. is improving, Europe is still not strong and developing markets lag. The healthcare sector improved, but it is still a question mark for the second half of the year. As the economic recovery matures, we have seen a fairly consistent pattern in quarterly earnings: estimates come down during the course of the quarter, and then beat the “lower…

What to expect from U.S. midterm elections

Robert McConnaughey, Director of Global Research | October 20, 2014

While consensus suggests a slightly better than average chance of a GOP takeover, battle for control of the U.S. Senate is going to be a dramatically close call. When we examine how a GOP win might affect industries such as energy, healthcare and defense, it’s not as black-and-white as some people might think. One of the major issues for both parties to address between now and 2016 is their stance on tax reform, and we see common ground for com…

Profit margin watch

Tom West, Director of Equity Research | October 13, 2014

…er, upstart competitors that are positioned for these trends. Regulatory fiat: Both the financial sector and the healthcare sector saw disruption in the form of legislation around pricing and offerings. Healthcare has absorbed much of the Affordable Care Act pretty well. Managed care companies have held onto profitability, and some of the providers are benefiting from the growth in utilization. The financial sector was hit with a variety of restr…