Assessing the business of medicine

IN THE first part of this sector analysis published in The Business Times on April 27, we explored topical issues such as demographics, government policies and cost of drugs that can influence the performance of businesses operating in the life sciences and healthcare sector. Our analysis went on to touch on four elements affecting individual companies: level of demand, market structure, corporate performance and track record; and environmental, social and governance issues.

In this second part, we will examine the different types of healthcare companies and provide suggested lines of enquiry to follow when considering a business for inclusion in an investment portfolio. As before, we will refer to life sciences and healthcare sector as the healthcare sector.

The medical corps