It’s not a surprise that people around the world need healthcare. It may be just a scratch from an awkward slip or serious injury or disease—you will need to go see the doctor anyway. Sure, when there is something everyone needs, there is also an opportunity for investments.
Healthcare and medical industries started growing rapidly during the last two years. The pandemic of COVID-19 significantly accelerated the research and development process. Since vaccines are bringing life back to normal (well, as normal as possible), the industry needs more support than ever.
Now healthcare is profitable to invest in, so here is a list of medical companies that you should keep an eye on.
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Vertex Pharmaceuticals
Vertex Pharmaceuticals is an American company headquartered in Boston that produces drugs and medicine for diseases like transfusion-dependent beta-thalassemia and sickle cell disease. It was founded in 1989 and since then the company has turned into one of the most profitable biopharmaceutical companies in the US.
Speaking about its market performance, it’s worth mentioning that Vertex’s market value almost reached $52 billion. The four most known cystic fibrosis drugs of this company made $1.7 billion in profit in the first quarter of 2021. Even though during the last two years three of the company’s clinical trials failed and they had to cancel several drug development processes, Vertex is expected to get almost $7 billion in sales.
Teladoc Health
Since most people got stuck at home during the pandemic, getting to the hospital became quite a challenge. If you need to visit a doctor, you should perform too many actions, way more than before. Besides, there is a higher chance to get in touch with COVID-19. That’s why telehealth became in demand and companies like Teladoc Health exist.
Teladoc Health is the leader in the telemedicine market. Their cloud platform allows people to speak with a doctor in real-time. It’s possible to perform most of the general medical procedures like diagnosing, requesting tests, and ordering prescriptions. Patients can even get remote health devices so doctors will have more data before the appointment. Such services became urgent in recent years, so the company’s revenue grew by a 70% CAGR since 2016.
Moderna
It’s hard to name a person who hasn’t heard about Moderna this year. Their COVID-19 vaccine quickly appeared on the market since the company had the experience of working with mRNA in virology. Moderna promises 3 billion vaccine doses by the end of 2022. It will definitely bring them more revenue.
For now, the state of MRNA stocks is quite positive. The company has a market value of $96.4 billion. Even though some experts are not really eager about their stock’s future, it’s worth following.
Danaher
The Washington, D.C.-based conglomerate has an interesting evolution story. It was founded in 1969 as a real-estate trust. During the next 30 years, it acquired and sold several companies and became an international corporation that designs and sells a wide range of products and services including medical ones.
The financial success of Danaher goes without question. In 2021, the company purchased Aldevron, a biotech producer of proteins, for $9.6 billion. Aldevron has Moderna as one of their clients: Plasmid DNA made by Aldevron helps in creating the COVID-19 vaccine. It’s easy to see that Danaher continues to improve its segments and gain more revenue.
Intuitive Surgical
Intuitive Surgical creates robotic medical products for minimally invasive surgery. The da Vinci Surgical System is the most famous in the industry: Since 1999, it was used in more than 8 million surgeries.
The company was threatened by increasing competition since the industry giants like Johnson & Johnson wanted to launch similar robotic systems. The pandemic postponed it, so Intuitive Surgical has more time to prepare and build more competitive advantages.
Why invest in medicine today?
- First, investing in medicine is improving the quality of life for people. Even before the pandemic, the medical industry was one of the most attractive areas for investment. The powerful technological development of medicine attracts companies from completely different industries: banks, IT giants, and retailers also invest in medical technologies. The inflow of investments stimulates new developments and solutions for diagnostics, treatment, and improving the quality of life.
- Secondly, it is an improvement in the quality of life of the investor himself. Why invest at all? Because an investor, like most people on the planet, needs more money for a better life. Someone wants to afford a house in Spain on the coast, someone dreams of living in Dubai and driving luxury cars offered by local companies https://renty.ae/types/luxury. The third group of investors are simply altruists, living for the good of society and trying to leave behind something really important.
- Third, with the help of investments, foreign medical specialists will be able to train colleagues in their standards and techniques for working with patients. Also, physicians can attract the most effective innovative technologies for diagnosis and treatment, modern equipment and drugs.
To sum it all up
Investments are extremely useful for both sides of the deal. The company receives money for its functioning and further research and you get dividends. Now the medical industry is going through harsh times, so it can be a nice idea to support it. Besides, if you try hard enough and the market state will be positive, you can earn enough or save money. You can help yourself and help others by investing in healthcare tech.
