Start 2026: Strong Momentum for Healthcare Investments

For me, the new year begins at my desk in Zurich. But even in the first few days of January, my attention is already focused on San Francisco. Preparations for the JP Morgan Healthcare Conference are in full swing, as it remains one of the key indicators for the sector. New study data, strategic announcements, and initial decisions in mid-January often set the tone for the year ahead. The healthcare sector is entering 2026 in a significantly improved position. After a prolonged period of heightened uncertainty, key conditions have stabilized, while several structural growth drivers are gaining momentum. This creates an environment for investors that is once again more strongly characterized by fundamentals, innovative strength, and earnings visibility. Political clarity as a catalyst for capital flows An important turning point was the increasing political clarity in the US. The price agreements reached in fall 2025 between the government and leading pharmaceutical companies have created a calculable basis for future pricing and reimbursement policy for the first time. This greater predictability has had a rapid effect: capital flows into the sector have increased noticeably, and healthcare has recently been one of the strongest segments of the global stock markets. Professional investors who had previously stood on the sidelines are beginning to build up positions again. Valuations are catching up – the potential has not yet been exhausted At the same time, a revaluation has begun. Although valuations have moved back from their historic lows towards their long-term averages, the healthcare sector continues to trade at a discount of around 13% to the overall market. This contrasts with earnings expectations: Biopharmaceutical and life science companies are expected to see average earnings growth of around 15% per year from 2024 to 2027 – more than double the long-term trend of around 7%. This combination of structural growth and continued moderate valuations creates an attractive window of opportunity for investors to increase their allocations. Biopharma in particular is benefiting from several growth drivers. New classes of drugs in oncology, advances in the treatment of obesity and diabetes, and innovations in the cardiovascular field are opening up additional sales markets. At the same time, demand in bioprocessing is rising, driven by onshoring effects and new production platforms. Added to this is exceptionally strong M&A capacity: with extensive liquidity reserves, many companies are well positioned to close pipeline gaps and actively manage patent expiries. Medtech: Established markets and new growth areas Medtech also remains a key growth pillar. Established segments such as robot-assisted surgery and continuous glucose monitoring continue to grow at double-digit rates, while new technologies are rapidly finding their way into clinical practice. The addressable market for continuous glucose monitoring is expected to nearly double in the coming years. At the same time, applications such as pulse field ablation and AI-supported smart glasses are becoming increasingly important. Despite this momentum, large medtech companies continue to trade at a significant valuation discount to the broader stock market. Emerging markets: From production location to innovation driver Another structural factor is the growing importance of emerging markets. China is increasingly evolving from a pure production and licensing partner to an independent innovation center, for example in the field of oncology. In India, demographic trends, a growing middle class, and investments in healthcare infrastructure are driving demand for high-quality therapies and specialized services. A sector on the rise At the beginning of 2026, healthcare is back where the sector has historically created value on a regular basis: innovation, structural growth, and increasing operational visibility. The coming weeks—and in particular the intensive preparations for the conference in San Francisco—are sharpening the focus on which topics, technologies, and business models will set the pace in the healthcare sector in 2026. Marcel Fritsch, Head of Healthcare Fonds & Mandate, Bellevue Asset Management.