What is Healthcare Sector?
Healthcare encompasses big pharma (Johnson & Johnson, Pfizer, Roche, Novo Nordisk), biotech (Vertex, Moderna, Regeneron), medical devices (Medtronic, Boston Scientific), distributors (McKesson, AmerisourceBergen), insurers (UnitedHealth), and providers (HCA, hospital systems). Drug pipelines, FDA/EMA approvals, patent expirations ("patent cliffs"), and pricing pressure are key dynamics. India's pharma is dominated by generics manufacturing.
Why it matters for investors
Healthcare is roughly 13-15% of US GDP. The sector is generally defensive (people need healthcare regardless of economic cycle) but has significant company-specific risk from drug approvals, patent losses, and policy changes. The GLP-1 weight-loss drug class (Ozempic, Wegovy from Novo Nordisk; Mounjaro, Zepbound from Eli Lilly) has reshaped the industry.