These three sub-sectors of healthcare got pummeled today. IMO, seems like a huge over-reaction. All this because of the GLP-1 drugs? Specifically, early stop to trial of Ozempic (a positive for the drug, as efficacy has been proven early).
I can understand investor concerns relating to direct renal care companies such as Davita $DVA and $BAX, seeing a 17% and 12% drop respectively today. But why are sectors like Medical Devices (E.g. Stryker $SYK) and health care facilities ($HCA) following with declines? Hell, even food stocks and soda stocks are seeing declines – seriously?
I'm a physical therapist, and I can hardly see these classes of drugs slowing down orthopedic surgeries or cardiovascular/cardiopulmonary cases. And trust me, people will still be eating and drinking soda. Seems like an overreaction by investors and a buying opportunity in my view.
One thing I know – surgeries and hospitalizations will not stop from one weight loss drug. DM drugs have been around for decades, and this really doesn't seem like anything groundbreaking.
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