Healthcare sector under pressure: opportunities and risks for investors 2025

Healthcare sector under pressure: opportunities and risks for investors 2025

High volatility will dominate the healthcare sector in 2025, while numerous companies will generate positive returns. According to a recent analysis by boerse.de However, the industry is heavily burdened by political uncertainties and economic challenges.

In particular, layoffs and funding cuts at health authorities such as the FDA are having a negative impact on biotech development. There was also an unexpected increase in healthcare costs, which led to significant share price losses for UnitedHealthcare. Particularly critical is the Trump administration's announced imposition of tariffs on pharmaceuticals, which calls into question future profits in the biopharma sector.

Developments and innovations

However, there are also positive things to report: Some companies in the healthcare sector are achieving medical milestones and recording significant returns. The power of innovation is highlighted as a decisive factor for outperformance in healthcare. New drugs target rare diseases and offer improved patient outcomes.

An example of this is Verona Pharma's Ohtuvayre, which was developed to treat COPD and generated sales of $71 million in the second quarter of 2025. The FDA is poised to review 60 new drugs, with the new FDA commissioner actively encouraging innovation. Despite these positives, the healthcare sector is trading at a nearly 20% discount to the S&P 500 and managed healthcare firms are entering 2025 with depressed valuations.

Investors should pay particular attention to companies that prove resistant to political change. Biopharma companies with a strong US presence have said Janus Henderson the opportunity to perform better. The trend also points to a rethink among investors, making defensive market areas more attractive.

Strategic considerations for investors

Market reactions to political uncertainty have led to heavy selling of clinical-stage biotech stocks. This could signal an attractive risk-reward ratio. The healthcare sector is subject to various government regulations that can affect the prices and availability of medications. The industry is also considering the challenges of rapid drug obsolescence and patent expiration.

Assessments regarding developments in the healthcare sector vary and there is no guarantee that past trends such as these will continue Janus Henderson supplemented. Investors would be wise to focus particularly on late-stage companies that have positive clinical data. The innovative strength of small and medium-sized biotech companies could be of central importance in this dynamic phase.