Stock Pitch 1: Healthcare
We are happy to announce our first stock pitch which focused on the pharmaceutical and healthcare industry.
Our equities team presented us with a market overview, company-specific analysis, and investment theses for three companies: Pfizer Inc. (PFE), The Cigna Group (CI), and BioNTech SE (BNTX).
The market overview gave us insight into the resilience and growth of the healthcare industry, even during economic downturns such as the 2007-2009 recession. It highlights that healthcare spending continued to grow, albeit at a slower rate, and the sector consistently added jobs even when others were facing cutbacks. It also points out the stability of pharmaceutical demand during recessions, with global sales reaching $1.5 trillion in 2020, amidst the COVID-19 pandemic. The adaptation and growth of telemedicine are noted, with a 1500% increase in telehealth visits in the U.S. in 2020, emphasizing the sector's ability to innovate in crisis. Lastly, the potential increase in government healthcare spending during recessions to support infrastructure and access to care, as seen with the U.S. government's CARES Act.
Pfizer is portrayed as a global pharmaceutical giant with a strong market presence and an extensive portfolio. The presentation includes detailed financials, management overviews, and catalysts for potential growth, such as upcoming FDA approvals and acquisitions.
The Cigna Group is presented as a robust health insurance firm with a solid financial base and a strong growth strategy based on partnerships. Their segment in health insurance is expected to grow steadily, and the presentation includes key financial projections and strategic partnerships that may drive future growth.
BioNTech SE is recognized for its mRNA technology and its significant role in developing a COVID-19 vaccine in collaboration with Pfizer. The presentation delves into its financial overview, the global oncology market's potential, and BioNTech's robust pipeline for treating diseases beyond COVID-19.
If you want to learn more about the specific reasons why these stocks were chosen and our financial analysis, check out the stock pitch deck and keep an eye out for future stock pitches coming out soon.
DISCLAIMER: This is not financial advice, but only our personal opinion, King's Capital will not be held liable for any gains made/losses incurred by following this information. King's Capital does not have any real capital allocated, using paper trading instead.
