Healthcare can only gain from AI - where to invest

Healthcare can only gain from AI - where to invest argues that artificial intelligence can improve healthcare outcomes without reducing demand, by accelerating analysis of large datasets. The article says AI and computing power enable tasks such as interpreting CT scans in milliseconds, reviewing drug-trial data in minutes instead of months, and analyzing historical studies to identify treatments faster. It frames the sector’s valuation as lagging despite potential benefits, citing Panmure Liberum estimates that healthcare trades broadly in line with its long-term history but with normalized profit margins down from 10% to 6%-7% over five years. It also claims healthcare trades at an approximate 50% discount to the MSCI ACWI on a normalised earnings basis. The piece contrasts pharma’s metrics, where valuations appear cheap on price-to-earnings but expensive when margins are adjusted. It points to investment vehicles like Worldwide Healthcare Trust (LSE: WWH), managed by OrbiMed, and discusses performance and discount to NAV, while also naming Polar Capital Global Healthcare (LSE: PCGH).