Decade-long theme in healthcare and tech mergers: Platinum


There is likely to be convergence between the technology and healthcare sectors over the next decade as consumers look to take greater control of their own wellbeing, according to Platinum fund managers.
In a video, Platinum managers Bianca Ogden and James Halse discussed how developments such as robotic surgery and e-prescriptions had led to the healthcare industry becoming even more technologically focused.
Halse, who managed the International Brands fund and led the consumer sector team, said: “Healthcare companies will have a bigger and bigger influence on the consumer space given the ageing population and increasing consumer interest in what is good and bad for their own health.
“There is convergence between consumer companies and the supply of pharmaceuticals in the US where companies such as Walmart and Target are trialling offering pharmacies in their stores to drive traffic. Amazon is also getting into the space as well.”
Another area was robotic surgery and artificial learning, which was being pioneered by companies such as Johnson and Johnson. Its Ottava ‘robotic surgical system’ had six arms and was able to perform a range of abdominal and chest procedures, expected to enter human trials at the end of 2022.
“An area where data is playing an important role in the next five to six years is robotic surgery. Johnson and Johnson has named its robot Ottava and they say they want to take integrated artificial learning and use the data to make better decision for the surgeon. This is an example of very good convergence between health and technology,” said Bianca Ogden, manager of the International Health Care fund.
In the future, Ogden added, it would be about how the two sectors could come together for the benefit of the consumer.
“You will see in the next 10 years that consumers will take an interest in their own health and where technology powers them to analyse it and healthcare provides the data at the end.”
In Australia, the ASX 100 Information Technology sector had returned 51% over one year to 11 January while the ASX 100 Healthcare sector had lost 5.4% over the same period, according to data from FE Analytics.
Performance of ASX 100 Information Technology sector versus ASX 100 Healthcare over one year to 11 January 2020
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