ESG

Health Care Monthly Monitor

Insights, Innovation and Impact
By Michael Li, Ph.D.,Henry He, CFA,Kevin Lewis, CFA, CAIA
JUL 29 | 2022
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This timely update provides insights into health care sector stock performance and social impact themes related to U.N. Sustainable Development Goal 3 (Good Health and Well-Being).

Market Insights 

Stocks rallied sharply in July in hopes that a weakening economy would decrease pressure on inflation and allow the Federal Reserve to slow its pace of interest rate hikes. Corporate earnings also held up better than expected. FactSet reported that blended earnings for S&P 500® Index companies rose an estimated 4.8% (year over year) in the second quarter, the slowest pace of earnings growth since the fourth quarter of 2020. Inflation continued to accelerate, and the economy contracted again in the second quarter by 0.9% after shrinking by 1.6% in the first quarter. Overall, small caps outperformed large caps, and growth stocks outperformed value across capitalization categories, according to the Russell indices.

Our Health Care Impact Themes

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New or Innovative Treatments for Diseases Including Cancer

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Access to Medicines and Health Care Services

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New Solutions for Lowering Health Care Costs

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Enhancing the Productivity of Medical Equipment, Services and Software

Mid-Year Innovation Update

We’ve often noted the rapid pace of new drug approvals. In 2021, the U.S. Food and
Drug Administration (FDA) granted full approval to 55 new drugs submitted by
biotech and pharmaceutical companies.¹ By June 2022, the FDA had fully approved
16 drugs, excluding those receiving emergency use authorization or orphan drug
designation.


{sup}¹Eric Sagonowsky, “2021 drug approvals,” Fierce Pharma, January 4, 2022.{/sup}

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Company in Focus

argenx is a clinical-stage biopharmaceutical company focused on developing antibody-based therapies to treat autoimmune diseases and cancer.

Authors
Michael Li, Ph.D.
Michael Li, Ph.D.

Vice President

Senior Portfolio Manager

Henry He, CFA
Henry He, CFA

Vice President

Portfolio Manager

Kevin Lewis, CFA, CAIA

Kevin Lewis, CFA, CAIA

Senior Client Portfolio Manager

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When portfolio managers incorporate Environmental, Social and Governance (ESG) factors into an investment strategy, they consider those issues in conjunction with traditional financial analysis. When selecting investments, portfolio managers incorporate ESG factors into the portfolio's existing asset class, time horizon, and objectives. Therefore, ESG factors may limit the investment opportunities available, and the portfolio may perform differently than those that do not incorporate ESG factors. Portfolio managers have ultimate discretion in how ESG issues may impact a portfolio's holdings, and depending on their analysis, investment decisions may not be affected by ESG factors.

Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.

The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.

References to specific securities are for illustrative purposes only, and are not intended as recommendations to purchase or sell securities. Opinions and estimates offered constitute our judgment and, along with other portfolio data, are subject to change without notice.