Reuters: Felix Lo on Healthcare Investing and M&A Activity

The article highlights growing hedge fund exposure to healthcare stocks, with Goldman Sachs noting that allocations to the sector have risen to levels close to a five-year high. Increased use of AI in drug discovery, rising research productivity and an improving financing backdrop have all contributed to investor interest in healthcare companies.

Commenting on the sector, Felix noted that volatility in the drug approval process has increased this year. He also observed that, in M&A transactions, smaller pharmaceutical companies have been more willing to accept discounts in return for greater certainty of execution, adding that: “This has created a robust environment for deals.”

The article also examines growing activity among specialist healthcare investors and the continued expansion of healthcare-focused hedge fund strategies.

The full Reuters article, including Felix’s comments on healthcare investing and M&A activity, can be accessed here.