Entries filed under 'Health Care'

    Fixing Health Care

    July 19, 2016 3:33 PM by Lord Abbett Editorial Staff

    Can "bundled payments" drive better care and lower costs? Lord Abbett research analysts discuss the investment implications. 

    While the current political environment may be as polarized as ever, it is much easier to find consensus on America’s healthcare system: it’s a mess.

    Read More »

    Picking Stocks in the War on Alzheimer's

    October 27, 2015 3:50 PM by Lord Abbett Editorial Staff

    Much is riding on new drugs that may slow the disease, says Lord Abbett Partner and Research Analyst Lavina Talukdar.

    During her 15 years of covering the pharmaceuticals and biotechnology sectors, Lord Abbett Partner and Research Analyst Lavina Talukdar has plumbed the pipelines of a number of companies to assess which drugs have the potential to transform the Alzheimer’s market.

    Read More »

    Research in Action: Big Pharma on Steroids

    March 27, 2015 12:20 PM by Lavina Talukdar

    Relentless innovation and ongoing mergers and acquisitions have created significant investment opportunities in the pharmaceuticals and biotechnology sectors. 

    Prescription drugs may be a relatively small significant chunk of national healthcare expenditures each year (see Chart 1), but ongoing innovation and consolidation in the sector has had a powerful effect on valuations. 

    Read More »

    Was the Affordable Care Act a "Bond-Aid"?

    September 10, 2014 10:35 AM by Lord Abbett Editorial Staff

    While the ACA definitely helped stocks, its impact on bonds was actually a mixed bag. Tax-free bonds issued by hospitals have remained attractive.  

    When the U.S. Supreme Court upheld the ACA at the end of 2012, both the Merrill Lynch High-Yield Healthcare Indexand Merrill Lynch Investment-Grade Healthcare Index2 were already trading close to their overall asset class indexes, reflecting those sectors’ generally perceived defensive characteristics.

    According to Lord Abbett Research Analyst Bill Carpenter, both of those healthcare indexes have modestly underperformed the Merrill Lynch High Yield Master II Index3 and Merrill Lynch U.S. Corporate Master (A) Index4, respectively, ever since for that reason—and because of the combination of the low interest-rate environment and the availability of other better-yielding sectors within the respective corporate universes. Thus, most of the overall healthcare sector’s volatility (both positive and negative) has been reflected in stock prices rather than bond prices.

    Read More »

    Taking Health Care of Your Investments

    September 4, 2014 10:53 AM by Lord Abbett Editorial Staff

    Long considered defensive, the healthcare sector has been one of the best performing sectors of late. How sustainable is this trend?

    In an article that might rile detractors of the Affordable Care Act (ACA), three business professors recently extolled the long-term benefits of investing in the healthcare industry, especially now that national healthcare spending since 2013 is expected to grow faster than the overall economy through 2020, regardless of legislative changes.

    Read More »

    Research in Action: Politics and Snafus Aside, a Strong Prognosis for Health Care

    May 15, 2014 9:46 AM by Devesh Karandikar

    Analyzing companies that stand to benefit from greater utilization of products and services thanks to a much larger patient population


    Think the Affordable Care Act (ACA) has been bad for health care stocks? Actually, health care has been one of the best performing sectors in the S&P 500® Index in the past five years (see accompanying chart), and the fundamentals for industry leaders remain strong as the insured population and healthcare spending continue to grow. (See "Genes, Drugs, and Rock and Roll.")

    Read More »

    Do Biotechs Have More Upside?

    April 22, 2014 11:56 AM by Lord Abbett Editorial Staff

    Lord Abbett has identified three encouraging trends for the sector.

    Forty-three years after President Richard Nixon launched a national “war on cancer,” millions have died, millions have extended their lives with new and improved treatments, and billions of dollars have been made by investors in biotechnology and pharmaceutical companies on the front lines.  A case in point is the NYSE Arca Biotechnology Index (BTK), which has a high concentration of companies with cancer compounds in various stages of development, is up 295% in the five years through April 17, 2014.

    Is all the good news priced into biotech stocks?  Or do the long-term fundamentals justify continued bullishness?  

    Read More »