Our new report considers how shifting US regulation offers both headwinds and tailwinds for healthcare investors.

The research explores the regulatory landscape and its influence on the competitive positioning of healthcare companies, discussing how:

1) Regulatory forces can act as strong headwinds, particularly for businesses involved in the provision of medical care services or insurance. In our view these sub-sectors are less attractive than other areas of healthcare

2) Some of these same regulatory forces can act as tailwinds for healthcare companies, especially for growth focused technology businesses where long-term success is more dependent on widespread adoption than on payer rates.

3) In these select cases long-term regulatory shifts can create asymmetry to the upside for companies’ return profile.

‘Examining Healthcare’ argues for a nuanced approach to effective capital allocation in the healthcare sector, including a dual focus on limiting disruption from risks that are difficult to quantify and finding opportunities where regulatory shifts can accelerate the adoption of proprietary science or technology.