Health Care Offers More Than a Defensive Role in Portfolios

UBS views the health care sector as a compelling growth opportunity driven by structural innovation in GLP-1 metabolic therapies and AI-augmented drug development. Despite its defensive reputation, the sector's long-term outlook is bolstered by aging demographics and technological efficiencies.

Key Takeaways

• 1.The health care sector is evolving beyond a purely defensive portfolio role, driven by innovation in pharmaceuticals and AI-enabled drug discovery.
• 2.GLP-1 drugs represent a significant growth area, expected to exceed USD 100bn in global revenues by 2030, with utility expanding into metabolic therapies beyond obesity and diabetes.
• 3.Artificial intelligence is fundamentally shortening pharmaceutical development cycles and improving success rates, increasing returns on invested capital.

Table of Contents

• Health care offers more than a defensive role in portfolios
• From the studio
• Thought of the day
• The development of GLP-1 drugs highlights the growth opportunities in pharmaceuticals.
• The convergence of AI and advanced genomics suggests a paradigm shift.
• What to watch: 10 June
• Caught our attention
• Market update