Healthcare industry: The big winner of the crisis?
28.05.2020, Autor / Redaktion: NINE brackets
Shares have plummeted by 30 percent in Germany in recent weeks. However, there is also a counter-trend occuring. Investors are increasingly betting on shares of companies from the healthcare sector.
Generell gilt: Die Healthcare-Branche ist krisenfester als andere Branchen. Sowohl bei der Dotcom-Blase im Jahr 2000 als auch in der Finanzkrise 2008/2009 fielen die Aktienkurse der Healthcare-Unternehmen weniger stark, als die des Gesamtmarkts. Bei der derzeitigen Krise kommt hinzu, dass einigen Healthcare-Unternehmen eine Schlüsselrolle zur Begrenzung oder gar Lösung der Krise zugesprochen wird. Der Healthcare-Sektor steht deshalb wie wohl nie zuvor im Rampenlicht der breiten Öffentlichkeit.
A quick look at the current German stock market already reveals the winners. Only five percent of companies in Germany were able to at least maintain their share value. The main winners are the healthcare companies Aladdin Healthcare, Heidelberg Pharma and Nanorepro. In the following, we will show how likely it is that companies in the healthcare sector will be successfull sustainably in the stock market. This is because there are certainly differences among the current winners.
In the midst of the action
The three big winners Heidelberg Pharma, Aladdin Healthcare and Nanorepro have a direct connection to Corona in terms of content. Heidelberg Pharma is the licensee of a substance that is used in Corona vaccine studies, Aladdin Healthcare is developing diagnostic components for Covid-19 with government funding and Nanorepro sells quick tests.
All three have in common that before the crisis they were considered to be rather weak. The immense price gains of the three are closely linked to the speculation that they will contribute to combating the virus. But what about companies in the healthcare industry that have no direct connection to corona?
Medical supplies and software
Other companies in the healthcare industry are also currently managing to attract attention with positive news. Several companies in the field of medical and safety technology are currently expanding their production considerably. For example, the company Drägewerk, which has multiplied its production of ventilators.
In addition to these probably quite obvious companies, there are also companies that have been somewhat under the radar so far. Even doctors‘ surgeries and hospitals often have to fundamentally rethink their way of working as a result of the restrictions. The classic consultation hours should be avoided if possible. This is where offers come into play that enable online consultation hours or digital prescriptions, for example. With regard to the current and globally very rapidly advancing digitalisation in the industry, it can be assumed that the successes will be particularly sustainable.
But not everything is rosy. Because the crisis also has another face. Many treatments that would have taken place under normal circumstances are being postponed or cancelled. And even normal research operations can only proceed under very strict conditions.
By no means are all healthcare companies among the winners. And it also remains to be seen how sustainable the success of the current beneficiaries will be. But one thing becomes clear once again when looking at the entire industry: The healthcare sector can better cushion times of crisis thanks to its high innovation potential and its lower dependence on a good economy.