Healthcare Sector Predictions for the Future
Originally Published 2 years ago — by CNBC
Analysts predict that the healthcare sector will continue its momentum into 2024, with beaten-down biotech and medical device makers rebounding. However, the sector faces challenges such as drug price negotiations and increased regulatory focus on drug prices. The political calendar, including the upcoming presidential election, could impact the sector's performance. Health insurers' pharmacy benefits management divisions are under regulatory pressure, but improving fundamentals are expected for health insurers next year. Medical device makers may see a rebound as concerns about the impact of obesity medications on demand for devices subside. The biotech sector has recovered from losses and is expected to benefit from cash flows from GLP-1 drugmakers. Life science tools companies may also see improvement as interest rates stabilize.
