Leading Chinese-based insurers and pharmacies will be among the winners from the global technological transformation of health care, Bloomberg Intelligence believes.
It has identified three smart health care related companies, which have been included in Bloomberg Intelligence’s new “100 Investment Ideas to Watch for 2021” (BI100) report. The list identifies 100 global public companies, credits, market strategies and ETFs that BI analysts believe will benefit from significant fundamental catalysts and developments in 2021.
As international markets and institutions are navigating the ongoing pandemic, as well as major political transitions across the globe, the BI100 aims to provide a globally inclusive portfolio and outlook for 2021 to both the business and investor community alike. Alibaba Health, the health arm of Chinese tech giant Alibaba, is ideally positioned to dominate online drug sales in China in a market which is project to expand by at least 30% a year until 2024 as the country pushes to separate drug sales from hospitals and improve payments.
Teledoc Health Inc, already established as the market leader in telehealth, is benefiting from the growth in the sector driven by COVID-19 and its recent $18.5 billion purchase of monitoring company Livongo enables it to address chronic conditions such as diabetes and hypertension.
ZhongAn Insurance’s position as China’s leading online insurance seller enables it to benefit from growing demand for coverage among China’s working class and its deal with Alibaba to sell products puts it on course for an underwriting profit for the first time since it was founded in 2013.
Bloomberg Intelligence’s Tim Craighead said: “Technology is transforming health care around the globe and across industries as companies increase investment in new products and distribution channels. Digitization is creating new opportunities in pharmacies, health monitoring and insurance to mention just a few.”
This year’s new BI100 report represents an expansion from BI’s traditional 50 ‘companies to watch’ annual list. The BI100 specifically analyzes how critical themes such as green recovery, smart healthcare, and digital transformation will be impacted by public health and policy changes. Bloomberg Intelligence’s team of over 350 analysts spent months evaluating and assessing over 2,000 public companies across 135 industries to devise the BI100.
Bloomberg Intelligence Global Director of Research David Dwyer said: “At a chaotic time when the Covid-19 pandemic is upending entire industries and causing extreme market volatility around the world, the BI100 provides investors with analysis of where key industries and financial products may be headed throughout the year. Using detailed yet accessible language, our analysts help investors at any level understand the current landscape of business. The list is supported by much more detailed analysis and data on the Bloomberg Terminal.”
Bloomberg Intelligence’s Chief Equity Strategist Gina Martin Adams adds: “As markets look to the fits and starts of the emerging economic recovery and additional stimulus from U.S. policymakers to drive the overall trend, the BI100 offers analysis focused on data and deep industry expertise to identify enduring opportunities for the year ahead. This report serves as a guide to actionable insights in a pivotal year that will change how and where people work, how individuals and companies will be taxed, and which industries will thrive in the post-pandemic economy.”