Healthcare: Led by science, driven by returns

James Douglas, Fund Manager and Damiano Soardo, Investment Analyst on the Polar Capital Global Healthcare Team, explain why they are becoming increasingly optimistic on healthcare, as improving earnings, renewed inflows and continued innovation begin to support the sector. Using real-world drug development stories, they highlight how breakthrough science can translate into powerful earnings upgrades through new product launches but also show how poor execution can quickly reverse expectations. They believe understanding these product cycles is key to navigating healthcare, where returns are closely tied to innovation.