Healthcare

The healthcare sector, encompassing pharmaceuticals, insurance, providers, and distribution, represents one of the largest and most resilient segments of the global economy with a TAM exceeding $4-5 trillion in the US alone and global services markets projected to surpass $1.6 trillion by 2033. Key growth drivers include an aging population, rising chronic disease prevalence, innovation in GLP-1 drugs and oncology, and expanding insurance coverage, supporting steady 5-8% annual revenue and EBITDA growth. The primary tension revolves around balancing innovation-driven pricing power and volume growth against regulatory pressures, cost containment efforts by payers, and debates over affordability and access in a highly concentrated yet fragmented system.

• Companies primarily engaged in development, manufacturing, and marketing of pharmaceuticals and biotech products
• Health insurers, managed care organizations, and payers processing claims and managing benefits
• Hospital operators, healthcare providers, and ambulatory services
• Pharmaceutical and medical product distributors and wholesalers

• Medical device and equipment manufacturers (unless core to a diversified healthcare conglomerate)
• Pure-play healthcare technology or software companies focused on IT solutions
• Biomaterials or standalone diagnostics firms not tied to the primary universe companies

Not precisely aggregated for the exact 10-company universe; sector-level US healthcare spending ~$4.5T+ with top firms contributing hundreds of billions

5-8% annually (pharma ~8% drug spend growth, services ~6-9%)

15-25% varying by subsector (higher for pharma, lower for providers/insurers)

• Rev Growth YoY
• Op Margin
• Net Margin
• R&D Intensity
• Capex Intensity

5

5

5

5

2

4

4

3

4

2

3

3

2

2

3

2

2

1

3

1

2

1

2

3

3

5

4

1

1

1

4

1

1

3

3

1

1

1

1

4

4

3