Brunswick conducted a survey of US investors to understand their views on the healthcare sector, the pace of innovation, and the risk of regulation.
To state the obvious, healthcare is a complicated business. Every health-related topic is at once a financial matter for the companies involved, an economic issue for society, and an intensely personal topic for patients and their families. A survey of US investors conducted by Brunswick Group underscores this point, while also suggesting how successfully navigating this complexity creates opportunities and minimizes executive headaches.
Brunswick surveyed 500 retail investors in the United States to understand:
- What do retail investors prioritize when considering investments in the health sector?
- How do retail investors view the regulatory and political climate as it relates to healthcare?
Among the survey's key findings:
- Scrutiny over drug pricing matters to investors. 41% of respondents strongly agree that they are less likely to invest in a pharmaceutical company that is under scrutiny over its drug pricing.
- The 2020 election is expected to focus heavily on drug pricing. More than half of retail investors believe that drug pricing will be a more important issue in the 2020 election than previous elections.
- Cybersecurity concerns affects the sector's investment potential. 77% of retail investors believe the healthcare industry is behind in implementing cybersecurity measures.
- The industry will face harsh regulations around drug pricing. 87% of retail investors agree that unless pharmaceutical companies can better justify their drug pricing models, they will face regulations that will negatively affect profitability.
- The healthcare industry is lagging behind other industries on innovations. 24% of retail investors believe that healthcare is innovating too slowly.