Understanding the healthcare sector

This sector piece examines the evolving healthcare landscape through a bottom-up valuation lens, highlighting the scale, complexity, and diversity of healthcare subsectors including biologics, CDMOs, CROs, connected healthcare, managed care, and life sciences. Supported by strong market growth, expanding clinical pipelines, and sustained investment activity, the sector continues to present significant opportunities across public and private markets.

The paper underscores that while macroeconomic and regulatory trends provide a broad market perspective, accurate valuation assessment requires a more granular understanding of each subsector’s unique dynamics, including regulatory structures, R&D intensity, manufacturing capabilities, and investment models. The sector piece outlines why a bottom-up approach is critical to effectively evaluating companies and unlocking value across the healthcare ecosystem.