Healthcare: Investing in better outcomes

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Marketing Communication

Healthcare is entering a golden age of innovation, with genetic sequencing and other advance technologies enabling a rapid pace of medical breakthroughs.

At the same time, demand for care is growing as populations age and unmet medical needs persist. These dynamics are creating sizable growth opportunities – with potentially positive outcomes for patients and investors alike.

The opportunity for investors:

New sources of growth

Drugs targeting specific biological characteristics have the potential to dramatically improve patient outcomes, reduce costs, and improve the odds of regulatory approval. Over the past two decades, the number of novel drugs approved by the FDA over five-year periods has doubled, and in 2021, sales of blockbuster drugs exceeded €374.8 billion, up 70x since 2000.1

 New sources of growth

Opportunity for digitisation

Technology is transforming almost every aspect of healthcare, from drug research and surgical practices to real-time patient monitoring. But we are still in the early stages of this digital shift; the global market for minimally invasive robotic surgeries, for example, is expected to reach €21.9 billion by 2030, up from €8.1 billion in 2020.2

 Opportunity for digitization

Favorable demographics

Healthcare spending as a percentage of GDP is rising as populations age, particularly in large developed economies. In the US, people over age 65 spend nearly 3x more on healthcare than younger adults, and through the end of the decade, 10,000 people per day in the US will turn 65.3 Between 2015 and 2050, the proportion of the world’s population over 60 will nearly double from 12% to 22%.4

 Favorable demographics

Growing investment

Private and public investment in healthcare innovation is gaining urgency. Over the last decade, venture capital investment in European biotech and healthcare firms has increased more than 3x, and in the US, more than 7x.5

 Growing investment

Defensive characteristics

In addition to offering growth opportunities, the healthcare sector has also typically held up better than the broader equity market amid downturns. Looking at declines of 15% or more in the MSCI World IndexSM since 2000, the MSCI World Health Care IndexSM captured just 47% of losses, on average.6

 Defensive characteristics

The opportunity for investors:

New sources of growth

Drugs targeting specific biological characteristics have the potential to dramatically improve patient outcomes, reduce costs, and improve the odds of regulatory approval. Over the past two decades, the number of novel drugs approved by the FDA over five-year periods has doubled, and in 2021, sales of blockbuster drugs exceeded US $400 billion, up 70x since 2000.1

Opportunity for digitization

Technology is transforming almost every aspect of healthcare, from drug research and surgical practices to real-time patient monitoring. But we are still in the early stages of this digital shift; the global market for minimally invasive robotic surgeries, for example, is expected to reach US $23.4 billion by 2030, up from US $8.6 billion in 2020.2

Favorable demographics

Healthcare spending as a percentage of GDP is rising as populations age, particularly in large developed economies. In the US, people over age 65 spend nearly 3x more on healthcare than younger adults, and through the end of the decade, 10,000 people per day in the US will turn 65.3 Between 2015 and 2050, the proportion of the world’s population over 60 will nearly double from 12% to 22%.4

Growing investment

Private and public investment in healthcare innovation is gaining urgency. Over the last decade, venture capital investment in European biotech and healthcare firms has increased more than 3x, and in the US, more than 7x.5

Defensive characteristics

In addition to offering growth opportunities, the healthcare sector has also typically held up better than the broader equity market amid downturns. Looking at declines of 15% or more in the MSCI World IndexSM since 2000, the MSCI World Health Care IndexSM captured just 47% of losses, on average.6

A differentiated approach to healthcare investing

The Global Life Sciences Fund seeks to invest in companies worldwide that are addressing high, unmet medical needs and providing efficient and cost-effective healthcare solutions. The healthcare sector, with its rapid growth and high complexity, offers opportunities for differentiated research. Understanding the science and the business behind new therapies and having a disciplined investment process are pillars of our approach.

The Fund is designed to:

Identify healthcare’s best scientific and commercial opportunities

Diversify across industry, geography, and market capitalization

Mitigate downside risk through a proprietary value-at-risk framework

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A focus on companies bringing true innovation to market

The level of innovation in the healthcare sector is really like nothing we’ve ever seen before, and many of the advances that are happening now feel like science fiction.
– Andy Acker, CFA, Portfolio Manager
The level of innovation in the healthcare sector is really like nothing we’ve ever seen before, and many of the advances that are happening now feel like science fiction.
– Andy Acker, CFA, Portfolio Manager

Why invest in healthcare with Janus Henderson?

  • Over 100 years experience
    A dedicated team of 9 members with more than 100 years combined of healthcare investing experience
  • Sector experts
    Our team of experts includes three PhDs and one MD.
  • A strong track record
    Over the long term, a proven ability to navigate the gap between healthcare’s top- and bottom-performing stocks – historically, the widest of any sector – by staying focused on risk/reward.
  • A long-term approach
    The quality of our investment team, the depth of our research, and our disciplined long-term approach set us apart in pursuing superior risk-adjusted returns in healthcare.

Past performance does not predict future returns. The value of an investment and the income from it may go down as well as up and you may lose the amount originally invested.

View full calendar year performance history

Portfolio management

Andy Acker

Andy Acker, CFA
Portfolio Manager
(27 years of experience)

  • Leads the firm's Health Care Sector Research Team
  • Joined Janus in 1999 as a research analyst focused on biotechnology and pharmaceutical companies
  • B.S. degree in biochemical sciences from Harvard University, graduating magna cum laude and Phi Beta Kappa
  • MBA with honors from Harvard Business School
Dan Lyons

Daniel Lyons, PhD, CFA
Portfolio Manager
(23 years of experience)

  • Joined Janus Henderson in 2000
  • Focused on biotechnology and life science tools sectors
  • PhD in immunology from Stanford and postdoctoral research with a Nobel laureate
  • Bachelor’s degree in biochemistry and chemistry from Rice University, graduating magna cum laude
Andy Acker

Andy Acker, CFA
Portfolio Manager
(27 years of experience)

  • Leads the firm's Health Care Sector Research Team
  • Joined Janus in 1999 as a research analyst focused on biotechnology and pharmaceutical companies
  • B.S. degree in biochemical sciences from Harvard University, graduating magna cum laude and Phi Beta Kappa
  • MBA with honors from Harvard Business School
Dan Lyons

Daniel Lyons, PhD, CFA
Portfolio Manager
(23 years of experience)

  • Joined Janus Henderson in 2000
  • Focused on biotechnology and life science tools sectors
  • PhD in immunology from Stanford and postdoctoral research with a Nobel laureate
  • Bachelor’s degree in biochemistry and chemistry from Rice University, graduating magna cum laude

Broader healthcare team

Agustin Mohedas, PhD
Biotechnology   |   9 years of experience 		  Vish Sridharan, MD
Biotechnology   |   3 years of experience 		  Luyi Guo, PhD, CFA
Pharmaceuticals   |   9 years of experience
Tim McCarty, CFA
Medical Technology   |   11 years of experience 		  Adam Poussard, CFA
Medical Technology   |   17 years of experience
Lauren Petite
Medical Technology   |   5 years of experience 		  Vicki Cohen
Associate Analyst   |   3 years of experience 		   

Source: Janus Henderson Investors, as of 31 December 2022.
Note: Years of experience refer to financial industry experience. See individual biography pages for complete biographies.

Broader healthcare team

Agustin Mohedas, PhD
Biotechnology   |   9 years of experience
Vish Sridharan, MD
Biotechnology   |   3 years of experience
Luyi Guo, PhD, CFA
Pharmaceuticals   |   9 years of experience
Tim McCarty, CFA
Medical Technology   |   11 years of experience
Adam Poussard, CFA
Medical Technology   |   17 years of experience
Lauren Petite
Medical Technology   |   5 years of experience
Vicki Cohen
Associate Analyst   |   3 years of experience

Source: Janus Henderson Investors, as of 31 December 2022.
Note: Years of experience refer to financial industry experience. See individual biography pages for complete biographies.

Resources

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Resources

Factsheet
Brochure
Commentary
Insights
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Exploring the science – and business – of biotech

The fund seeks to capitalize on biotechnology’s rapid growth and innovation by focusing on companies the team believes can “change the practice of medicine.”

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Footnotes

1 Food and Drug Administration (FDA), Janus Henderson, ISI Research. Data as of 31 December 2021. Blockbuster drug = > €900 million in annual sales.
2 BioSpace, “Minimally Invasive Surgery Market Size to Reach $23.4 billion by 2030,” 2 May 2022.
3 U.S. Census Bureau and Centers for Medicare & Medicaid Services. Spending data based on figures for 2014.
4 World Health Organization, “Ageing and health,” 1 October 2022.
5 Invest Europe, Q4 2021 PitchBook-NVCA Venture Monitor. Data as of 31 December 2021.
6 Janus Henderson Investors, FactSet. Data as of 31 December 2022.

Important information

Please read the following important information regarding this fund.