The digitalization of healthcare is still in its infancy. It is therefore likely that investors will benefit from the opportunities on offer over a long period of time. Efficiency gains that will give rise to the cost savings urgently required are a key driver. Furthermore, experience to date has revealed that companies in the field of healthcare technologies exhibit above-average growth potential.
These are generally smaller businesses that are run as entrepreneurial ventures and operate close to the market.
However, disruptive technologies and rapid upheavals also harbor risks, though these can generally be cushioned via broad diversification. Investors should ensure that a company has more than one product and can therefore benefit from the leverage of a technology platform. Ultimately, investors should also look for diversification within the healthcare market by spreading investments across various segments such as diagnostics, treatment, transplantation, or research.
The signs are good when it comes to long-term, successful investments in healthcare companies leveraging AI and big data. Nevertheless, developments and valuations can also be expected to move in the opposite direction. This obviously applies to the big players in the pharmaceutical sector as well. It is therefore possible that established, conservative corporations will be outflanked by these new technologies, with the future be- longing to more agile, specialist firms – businesses that investors should identify as soon as possible and keep on their radar.