From CNBC:



After the December market rally, the health-care sector has seen a resurgence. Beaten-down biotech and medical device makers have seen the biggest rebound. The JPMorgan health-care conference in San Francisco is expected to bring some big moves for health-care names. The political calendar could pose challenges, with the health-care sector lagging the S&P 500 in four of the last six presidential cycles. The situation has left many with a mixed outlook for the sector in 2024. In terms of specific market segments, pharmaceutical companies are facing drug price negotiations as part of the Inflation Reduction Act, while insurers are under increasing regulatory pressure. The medical device industry has seen a collapse, but it may also have already bottomed out and seeing signs of resurgence. The biotech sector is recovering, and momentum may continue in 2024. This rebound is expected to be fueled in part by the cash flows generated by GLP-1 drugmakers.



Original: Health sector themes to watch in 2024