Janus Henderson: Global Perspectives: Investing in the small- and midsize healthcare companies innovating for a graying world

In a follow-up discussion to a recent paper, Portfolio Managers Andy Acker, Jonathan Coleman, and Brian Demain explore how aging populations are helping to spur innovation in healthcare – and creating growth opportunities for investors.

Key takeaways:

• With the number of people aged 60 and over set to double by 2050, demand for medical care is rising rapidly, creating a large, noncyclical growth driver for the healthcare sector.
• Small- and mid-cap healthcare companies, which are driving the innovation behind advanced treatments for age-related disease, could offer some of the best growth potential.
• Innovation also carries downside risk, making a selective approach – one that considers the scientific and commercial potential of novel therapies and manages position size in a diversified portfolio – critical for investors.

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