--- title: "Schroders: Extreme Valuation Discount in Healthcare Sector, Aging Population Seen Providing Attractive Buying Opportunity" type: "News" locale: "en" url: "https://longbridge.com/en/news/296193681.md" description: "Schroders identifies an extreme valuation discount in the healthcare sector, contrasting it with crowded tech positions. Citing aging demographics and fading regulatory headwinds, the firm views healthcare as an attractive investment opportunity with strong risk-reward potential. Supporting this view are rising M&A activity in pharma/biotech and anticipated acquisitions by drugmakers facing significant patent expiry risks." datetime: "2026-08-18T08:01:41.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296193681.md) - [en](https://longbridge.com/en/news/296193681.md) - [zh-HK](https://longbridge.com/zh-HK/news/296193681.md) generator: "portal-rs" --- # Schroders: Extreme Valuation Discount in Healthcare Sector, Aging Population Seen Providing Attractive Buying Opportunity Schroders stated that concentration in global equity markets is extremely high, with investors shifting capital in recent years into popular sectors such as AI and defense industries. The five largest US tech giants now account for nearly 20% of the MSCI All Country World Index, leading to crowded positioning in the tech sector, while the healthcare sector has underperformed in recent years and is currently trading at a substantial valuation discount. The firm expects population aging to provide strong structural support for the healthcare sector, creating an attractive entry opportunity for investors. It believes that as regulatory headwinds gradually fade and underlying earnings momentum re-emerges, healthcare stocks will transform from overlooked market laggards into one of the asset classes with the best risk-reward profiles in global equities. Total M&A transactions in the pharmaceutical and biotechnology sectors have reached approximately USD100 billion so far this year, while biotechnology financing in 2Q26 surged 86% YoY. Schroders noted that major pharmaceutical companies are facing significant patent expiry risks, with revenue exposure from patent cliffs over the next eight years estimated at around USD400 billion. The firm expects drugmakers to actively pursue acquisitions or licensing of strong late-stage development projects. ### Related Stocks - [IBBQ.US](https://longbridge.com/en/quote/IBBQ.US.md) - [BIS.US](https://longbridge.com/en/quote/BIS.US.md) - [ARKG.US](https://longbridge.com/en/quote/ARKG.US.md) - [BBH.US](https://longbridge.com/en/quote/BBH.US.md) - [XHE.US](https://longbridge.com/en/quote/XHE.US.md) - [IHE.US](https://longbridge.com/en/quote/IHE.US.md) - [PBE.US](https://longbridge.com/en/quote/PBE.US.md) - [IXJ.US](https://longbridge.com/en/quote/IXJ.US.md) - [IDNA.US](https://longbridge.com/en/quote/IDNA.US.md) - [SBIO.US](https://longbridge.com/en/quote/SBIO.US.md) - [IYH.US](https://longbridge.com/en/quote/IYH.US.md) - [IHF.US](https://longbridge.com/en/quote/IHF.US.md) - [XBI.US](https://longbridge.com/en/quote/XBI.US.md) - [LABU.US](https://longbridge.com/en/quote/LABU.US.md) - [516500.CN](https://longbridge.com/en/quote/516500.CN.md) - [588130.CN](https://longbridge.com/en/quote/588130.CN.md) - [588250.CN](https://longbridge.com/en/quote/588250.CN.md) - [159992.CN](https://longbridge.com/en/quote/159992.CN.md) - [516610.CN](https://longbridge.com/en/quote/516610.CN.md) - [520880.CN](https://longbridge.com/en/quote/520880.CN.md) - [159898.CN](https://longbridge.com/en/quote/159898.CN.md) - [562600.CN](https://longbridge.com/en/quote/562600.CN.md) - [520690.CN](https://longbridge.com/en/quote/520690.CN.md) - [513290.CN](https://longbridge.com/en/quote/513290.CN.md) - [513120.CN](https://longbridge.com/en/quote/513120.CN.md) - [IXJ.AU](https://longbridge.com/en/quote/IXJ.AU.md) - [SDR.UK](https://longbridge.com/en/quote/SDR.UK.md) ## Related News & Research - [3 healthcare ETFs to own in a choppy stock market](https://longbridge.com/en/news/291834343.md) - [Guotai Asset Management sees liquidity boost driving China biotech, innovation drug shares higher](https://longbridge.com/en/news/296448906.md) - [SBIO: U.S. Programmatic and EMEA drove 49% of Q2 sales, with margins rising to 61% and profitability expected in H2 2026](https://longbridge.com/en/news/296517769.md) - [Moderna surges on trial win for cancer shot; William Blair upgrades](https://longbridge.com/en/news/296370751.md) - [LIVE MARKETS-BofA clients flock to tech stocks](https://longbridge.com/en/news/296383193.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**