Sanofi, AstraZeneca… health, a sector with potential on the stock market?

Where can an equity investor place his money, currently, on the stock market, in a context disturbed in particular by soaring inflation and long-term interest rates? “Historically, healthcare is the sector least affected by inflation, which is the subject that concerns us the most today. It has a strong potential for innovation and has benefited from the structural changes of recent years. The efforts of companies to reduce their costs have been beneficial in terms of margins”, judge Gregor Hirt, head of multi-asset investments at Allianz Global Investors, interviewed by Capital.

Furthermore, the health sector has been transformed. While “traditional parts, such as oncology (cancerology), require investment over a very long period, the industry is moving towards buoyant and individualized sub-sectors, with very expensive drugs”, observes the expert. Finally, the sector “benefits from big data and artificial intelligence, which allow it to reduce its costs”, underlines Gregor Hirt, for whom the stock market valuation of the health sector remains attractive. It remains to be seen which health sector stocks to select…

Sanofi: defensive qualities, facing the war in Ukraine, but disappointment in the treatment of breast cancer

Sanofi, the main French heavyweight in the sector, has disappointed lately. The company has published negative phase II clinical results on its oral treatment for a specific form of breast cancer. “This is not likely to reassure the quality of the pipeline (products in the making). More than ever, Sanofi seems to be dependent on Dupixent alone (dupilumab, medication against atopic dermatitis and moderate to severe asthma), of which the peak sales (sales peak) is now expected at a minimum of 13 billion euros. At the start of the year, however, the stock benefits from its defensive profile, the pharmaceutical industry being relatively protected from the consequences linked to the war in Ukraine (inflation and shortage of raw materials)”, underlines Stephan Dubosq, analyst at Kirao Asset Management , interviewed by Capital.

Astrazeneca: best in class?

More famous than ever with the general public since the release of its (controversial) vaccine against Covid-19, AstraZeneca displays an even more defensive profile, with an attractive pipeline of products in the making. A pipeline that should result in “stronger growth than that of competitors”, recently underlined Florian Allain, manager at Mandarine Gestion, interviewed by Capital. A more attractive growth and risk profile than that of competitors, reflected by a premium on the stock market… but this premium is still too low in our view, which still gives hope for good upside potential in the medium term.

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Sanofi, AstraZeneca… health, a sector with potential on the stock market?


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