Life Sciences & Healthcare: Drivers for sentiment change across healthcare

Research evidence excerpt

Life Sciences & Healthcare: Drivers for sentiment change across healthcare

19 June 2026

Life Sciences & Healthcare EquitiesHealthcare

Drivers for sentiment change across healthcare Global

◆ Investors are not keen to pay a higher premium for quality but

Morten Herholdt*

seem reluctant to take execution risk on the cheaper names Global Life Sciences & Healthcare Analyst

HSBC Bank plc

◆ Earnings will be watched as a key short-term driver, which morten.herholdt@hsbc.com+ 44 20 7992 4082

might work for pharma – a lesser impact expected elsewhere Rajesh Kumar*

Senior Global Life Sciences & Healthcare Analyst

◆ Don’t underestimate capital deployment – M&A to support HSBC Bank plc

growth is back in force and at valuations that make sense rajesh4kumar@hsbcib.com+44 20 7991 1629

Shubhangi Gupta*, PhD

Hanging in the balance: Broadly speaking, investor feedback on large cap healthcare Global Life Sciences & Healthcare Analyst

HSBC Securities and Capital Markets (India) Private

boils down to not wanting to take valuation risk in names with growth and visibility, while Limited

not being tempted to take execution risk on companies with lower valuations but also shubhangi.gupta@hsbc.co.in

+91 80 4555 2143

lower visibility or shorter growth longevity. Why pay up for quality growth when growth

Sidharth Sahoo*

elsewhere is so cheap or has the potential to improve? Any quality premium is seen as Global Life Sciences & Healthcare Analyst

capped and unlikely to expand. It raises the question of what can break this stalemate. HSBC Securities and Capital Markets (India) Private

Limited

Discussions are increasingly framed around when rerating will happen rather than the sidharth.sahoo@hsbc.co.in

level of cheapness, which could indicate a bottoming in negative sentiment. +91 77 3813 4135