Health to Wealth Fund

Healthcare focussed, Demographic driven

Healthcare Focused

40-60% of the portfolio in Healthcare sector (including Pharma) Rest in sectors driven by demographic changes and household spending.

Demography Driven

India’s demography presents opportunities in consumer-spending driven and under-served areas such as healthcare, durables, infrastructure etc.

Concentrated Portfolio

Well researched 12-18 stocks backed by rigorous due diligence.

Quality Conscious

Focus on quality of business, quality of earnings and quality of management.

Restrictions

No single stock to have more than 10% weightage Market cap agnostic.

India advantage

India offers the best growth opportunity globally driven by an improving macro economic environment, political stability and reform.

Our Edge in Healthcare

Rigorous analysis of company-fundamentals in sector context

  • Maintain full earning models, market models and comparative (consensus) valuation book
  • Quarterly Management meetings - leverage long term relationships - R & D, BD, IR
  • Focus on discrepancies with Consensus numbers, anticipate consensus movement.
  • Leverage experience / insight

  • Attending key scientific conferences (ACC, ADA, ASCO, AHA, ASH)
  • Leverage relationships with a network of key opinion leaders, primary investigators, professional societies.
  • Track regulatory environment (FDA, EMEA, MHLW, SFDA ...)
  • Global and Indian IP issues Clinical practice in India Vs. Developed Markets
  • Leverage relationships with career healthcare analyst around the world

    Well researched 12-18 stocks backed by rigorous due diligence.

    In-house proprietary quantitative models, help track the companies better

    Focus helps gauging market sentiments leading to timely exploitation of opportunities.

    Healthcare Opportunity

    Diagnostic

  • Diagnostic industry in India is valued at $9.1 bn and expected to grow at 15% CAGR
  • Standalone Centres comprises 45%, Hospital based 45%, Diagnostic chains 15% of the total market size
  • Organised diagnostic chains to benefit from structural shifts: PPP projects, prognosis, rising affordability
  • Medical insurance

  • India health insurance premium stands at $3.7bn, growing at 27% CAGR
  • Health insurance penetration is at 27% with only ~5% of population covered by private health insurance
  • Pharmacy

  • Market size is expected to grow from $19 bn to $56 bn by 2025.
  • India has total 8.5 lac chemists, but < 1% belong to the organised segment. Organised pharmacy retail is forecasted to grow 25-30% for next 10 years.
  • Pharmaceutical

  • Global Pharma market is expected to reach $1.5 tn by FY22, driven by biologics
  • Indian pharma is an export-oriented industry with 5 of the top 10 global generic companies are Indian
  • Total formulation sales for Indian company’s stands US $31b equally split b/w domestic & exports