Headline Risks Affecting Healthcare Tech & Distribution Sector Will Likely Continue in 2025: BofA Analyst
BofA Securities predicts that headline risks affecting the Healthcare Tech & Distribution sector in 2024 will likely continue in 2025.
Key areas of concern include pharmacy benefit managers (PBMs), retail pharmacies, distributors, fertility benefits, and direct-to-consumer (D2C) pharmacies.
While regulatory pressure on PBMs is expected to persist, the analyst believes this will mainly impact profit margins and growth rates rather than lead to major changes in the business model.
Potential policy shifts under the next administration could involve adjustments to the Inflation Reduction Act, expanded access to health savings accounts (HSAs), and increased support for fertility benefits.
BofA upgraded Cardinal Health Inc. (NYSE:CAH) from Neutral to Buy. The analyst notes Cardinal Health’s core pharmaceutical segment is growing faster than its competitors, with this trend expected to strengthen in the coming year.
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