TopGun^® Press

Brendan Wood International Investor Conviction Intel – Healthcare

June 1st, 2023 by TopGun Press

New York, NY, June 1st, 2023 (TopGun Press)

Below are the most in-demand Healthcare Stocks based on our daily chats with global investors. Below are links to the Investor Conviction Intel on Eli Lilly and Novo Nordisk.

Eli Lilly & Novo Nordisk: O-B-E-S-I-T-Y. Given their exposure to the obesity market, both Eli Lilly and Novo Nordisk have been experiencing increasing ownership penetration of the BWI Panel, with increasing conviction. Thus far in 2Q 2023, investors rate their ownership conviction in Eli Lilly slightly ahead of Novo Nordisk because it is more diversified. As one investor put it, “Obesity is a buzz word these days, but Eli Lilly has the extra buzz word, Alzheimer’s. It differentiates them from Novo Nordisk.” Novo Nordisk still outpaces Eli Lilly on BWI’s Investment Quality Index as rated by investors because, “It runs like clockwork,” however Eli Lilly is closing the gap. (Click here for the Investor Conviction Intel on Eli Lilly and here for the Investor Conviction Intel on Novo Nordisk)

Boston Scientific: Boston Scientific has been aggressive with the balance sheet. According to investors, they have had success with M&A and are able to grow faster because they’ve been able to shift their portfolio to higher end growth markets. They view Boston as a consistent executor and also as having navigated the macro environment and supply chain issues better than others. In 2023, Boston Scientific’s ownership penetration of investors in the BWI Panel has been increasing. Investors’ ratings of their confidence in Boston Scientific’s Growth Potential, both short and long term, and the Momentum of Investor Confidence has been improving.

CVS Health: Investors have varying opinions and questions about CVS’ M&A strategy. Investors have typically given CVS the benefit of the doubt when it comes to the concept of their diversification strategy over the past few years however at this stage investors want to see execution. They aren’t yet convinced that it will turn out the way that CVS thought it would. There is also integration risk with Signify and Oak Street. The Medicare Star rating drop and the retail pharmacy business remain headwinds. Ownership Conviction levels in CVS have been softening, bringing it closer in-line with the sector average.

AbbVie: Investors are uncertain about AbbVie’s growth in the short term given the Humira patent expiry. Investor confidence in AbbVie’s pipeline is below average and their ratings of AbbVie’s bench beyond the C Suite lags the sector and peer group given the level of turnover. Thus far in 2Q AbbVie’s ownership penetration of the BWI Panel and the ownership conviction level has dipped below both the peer group and Biotech & Pharma sector average. The CEO however, is less controversial than is widely perceived.

Largest Index Score Changes (Quarter over Quarter) (1Q2023 vs. 2Q2023 at May 31):
Eli Lilly and Company = +12%
HCA Healthcare Inc = +6%
Novo Nordisk A/S = +5%
Teladoc Health = -10%
Walgreens Boots Alliance Inc = -9%
Rite Aid Corp. = -9%

Largest Commitment to Own Changes (Quarter over Quarter) (1Q2023 vs. 2Q2023 at May 31):
Eli Lilly and Company = +16%
Novo Nordisk A/S = +14%
Zimmer Biomet Holdings Inc = +13%
Walgreens Boots Alliance Inc = -16%
Bayer AG = -15%
UCB SA = -13%

Sell-Side Analysts Being Paid for Healthcare Coverage from Global Investors:

US Biotech Sell-Side Analysts:
1. Tim Anderson (Wolfe)
2. David Risinger (SVB Leerink)
3. Umer Raffat (Evercore)

US Healthcare Services Sell-Side Analysts:
1. David Windley (Jefferies)
2. Justin Lake (Wolfe)
3. Michael Cherny (BofA)

US Medical Technology Sell-Side Analysts:
1. Derik de Bruin (BofA)
2. Lee Hambright (Sanford)
3. Robert Marcus (JP)

US Pharmaceuticals Sell-Side Analysts:
1. Christopher Schott (JP)
2. Tim Anderson (Wolfe)
3. Umer Raffat (Evercore)

Europe Pharmaceuticals Sell-Side Analysts:
1. Richard Vosser (JP)
2. Andrew Baum (Citi)
3. James Gordon (JP)

About Brendan Wood International:

Brendan Wood International (BWI), formed in 1970, is a private advisory group which originates performance investigation programs in the capital markets. Brendan Wood Partners debrief large institutional investors worldwide on a daily basis. There are 2000+ live consultations with professionals overseeing +/- $55 trillion invested in the +/- 1400 big cap companies on the BWI Index. Relying on its real time performance intelligence, BWI advises public companies, institutional and activist investors, investment banks and broker dealers on strategy, performance and recruitment of TopGun talent. The firm’s partners have formally presented at 1000+ C level strategy meetings and corporate off-sites in fifty cities. Brendan Wood founded the exclusive TopGun Club, a performance based institution. Brendan Wood International is the exclusive Index Provider to the AXS Brendan Wood TopGun Index ETF (Ticker: TGN)

Disclaimer:

We wish to emphasize that all reports, evaluations and assessments contained herein, represent Brendan Wood International’s subjective judgment and opinions, based on our years of experience and on information obtained by us in the course of our research. Much of the factual information contained in the reports has been obtained by us from third parties on whose responses we have relied in good faith, independent verification by Brendan Wood International being, under the circumstances, impossible. While we believe that you will find our reports to be an invaluable tool in formulating your own strategies and judgments, the foregoing should be borne in mind. This report is not meant as investment advice and should not be interpreted as advising on the value of a company’s securities, the advisability of investing in, purchasing or selling any company’s securities or any other conclusion relating to investment/divestiture of a company’s securities. Finally, this report is not intended as an offer or solicitation for the purchase or sale of any company’s securities.