Has the U.K. Healthcare Sector valuation changed over the past few years?

Investors are pessimistic on the British Healthcare industry, indicating that they anticipate long term growth rates will be lower than they have historically. The industry is trading at a PE ratio of 21.2x which is lower than its 3-year average PE of 27.2x. The industry is trading close to its 3-year average PS ratio of 3.3x.

Which industries have driven the changes within the U.K. Healthcare sector?

Investors are most optimistic about the Healthtech industry which is trading above its 3-year average PE ratio. Analysts are expecting annual earnings growth of 9.9%, which is lower than the prior year's growth of 51.1% per year.

U.K. (FTSE) Healthcare Sector Analysis

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Mon, 17 Aug 2026	UK£310.4b	UK£104.0b	UK£14.7b	28.7x	21.2x	3x
Wed, 15 Jul 2026	UK£328.0b	UK£103.3b	UK£16.1b	24.7x	20.3x	3.2x
Fri, 12 Jun 2026	UK£346.6b	UK£103.1b	UK£16.1b	26.8x	21.5x	3.4x
Sun, 10 May 2026	UK£337.7b	UK£102.3b	UK£16.0b	25.8x	21.1x	3.3x
Tue, 07 Apr 2026	UK£385.0b	UK£102.6b	UK£16.2b	20.6x	23.8x	3.8x
Thu, 05 Mar 2026	UK£383.3b	UK£101.9b	UK£16.1b	22.2x	23.8x	3.8x
Sat, 31 Jan 2026	UK£350.7b	UK£99.1b	UK£14.8b	26.3x	23.7x	3.5x
Mon, 29 Dec 2025	UK£347.0b	UK£100.0b	UK£14.9b	21.9x	23.2x	3.5x
Wed, 26 Nov 2025	UK£354.6b	UK£101.3b	UK£15.1b	24.1x	23.4x	3.5x
Fri, 24 Oct 2025	UK£323.8b	UK£98.9b	UK£12.1b	26.2x	26.7x	3.3x
Sun, 21 Sep 2025	UK£301.3b	UK£100.9b	UK£12.1b	28.5x	25x	3x
Tue, 19 Aug 2025	UK£308.1b	UK£100.7b	UK£12.0b	29.5x	25.6x	3.1x
Thu, 17 Jul 2025	UK£282.2b	UK£97.2b	UK£10.8b	31x	26.1x	2.9x
Sat, 14 Jun 2025	UK£298.4b	UK£96.8b	UK£10.7b	29.7x	27.9x	3.1x
Mon, 12 May 2025	UK£281.4b	UK£97.9b	UK£10.8b	30.2x	25.9x	2.9x
Wed, 09 Apr 2025	UK£276.0b	UK£99.1b	UK£9.8b	28.6x	28.2x	2.8x
Fri, 07 Mar 2025	UK£314.8b	UK£98.6b	UK£9.6b	28.3x	32.8x	3.2x
Sun, 02 Feb 2025	UK£264.5b	UK£86.6b	UK£7.7b	30.4x	34.3x	3.1x
Tue, 31 Dec 2024	UK£244.8b	UK£86.1b	UK£7.7b	31.2x	32x	2.8x
Thu, 28 Nov 2024	UK£248.4b	UK£85.5b	UK£7.6b	27.7x	32.7x	2.9x
Sat, 26 Oct 2024	UK£270.2b	UK£82.9b	UK£8.9b	25.5x	30.3x	3.3x
Mon, 23 Sep 2024	UK£276.9b	UK£81.6b	UK£8.8b	29.3x	31.5x	3.4x
Wed, 21 Aug 2024	UK£300.2b	UK£82.5b	UK£8.9b	33.6x	33.7x	3.6x
Fri, 19 Jul 2024	UK£281.9b	UK£80.9b	UK£9.3b	32.5x	30.3x	3.5x
Sun, 16 Jun 2024	UK£289.8b	UK£81.8b	UK£9.4b	30.8x	30.7x	3.5x
Tue, 14 May 2024	UK£296.3b	UK£82.3b	UK£9.5b	34.6x	31.3x	3.6x
Thu, 11 Apr 2024	UK£265.1b	UK£81.4b	UK£9.6b	29.6x	27.5x	3.3x
Sat, 09 Mar 2024	UK£259.9b	UK£80.2b	UK£9.5b	34.5x	27.3x	3.2x
Mon, 05 Feb 2024	UK£271.8b	UK£84.9b	UK£9.5b	38.7x	28.6x	3.2x
Wed, 03 Jan 2024	UK£274.0b	UK£84.3b	UK£10.7b	41.3x	25.7x	3.3x
Fri, 01 Dec 2023	UK£259.7b	UK£84.2b	UK£10.7b	39.6x	24.3x	3.1x
Sun, 29 Oct 2023	UK£261.1b	UK£86.2b	UK£10.3b	40x	25.3x	3x
Tue, 26 Sep 2023	UK£284.7b	UK£85.9b	UK£10.3b	39.7x	27.6x	3.3x
Thu, 24 Aug 2023	UK£271.6b	UK£84.0b	UK£10.2b	40.2x	26.7x	3.2x


GB Market	-1.35%
Healthcare	-4.33%
Healthcare Services	0.42%
Medical Equipment	-1.09%
Biotech	-1.95%
Healthtech	-2.47%
Life Sciences	-2.70%
Pharma	-4.57%

Company	Last Price	7D	1Y	Valuation
NIOX NIOX Group	UK£0.68	7.3% +UK£19.4m	0.3%	PE40.6x
CVSG CVS Group	UK£13.07	1.3% +UK£11.6m	6.4%	PE54.2x
OXB Oxford Biomedica	UK£4.87	1.8% +UK£10.3m	-2.6%	PS3.5x
STX Shield Therapeutics	UK£0.043	13.0% +UK£5.3m	-33.1%	PS1.3x
SAR Sareum Holdings	UK£0.27	15.2% +UK£4.8m	15.2%	PB30.8x

Announcement • 4h

HUTCHMED (China) Limited Announces Positive Results From SAFFRON Phase III Trial Demonstrating Statistically Significant And Clinically Meaningful Improvements In Progression-Free And Overall Survival For ORPATHYS Plus TAGRISSO In MET-Driven EGFR-Mutated Lung Cancer After Progression On TAGRISSO

HUTCHMED (China) Limited announced that positive high-level results from the SAFFRON Phase III trial showed ORPATHYS (savolitinib) plus TAGRISSO (osimertinib) demonstrated a statistically significant and clinically meaningful improvement in both progression-free survival (PFS) and overall survival (OS) versus doublet platinum-based chemotherapy in patients with epidermal growth factor receptor-mutated (EGFRm) non-small cell lung cancer (NSCLC). Patients in the trial had tumors with high levels of MET overexpression or amplification and had progressed on prior treatment with TAGRISSO. Third-generation EGFR-tyrosine kinase inhibitors (TKIs) have significantly improved outcomes for patients with EGFRm NSCLC. However, one in three patients’ tumors will develop MET overexpression or amplification, one of the most common mechanisms of resistance on third-generation EGFR-TKIs. MET-driven resistance is associated with poor prognosis, and there is a significant unmet need for effective and well-tolerated treatment options in later-line settings. The safety profile for ORPATHYS plus TAGRISSO was consistent with the known profiles of each medicine, and there were no new safety findings. These data will be presented at a forthcoming medical meeting and shared with global regulatory authorities. ORPATHYS plus TAGRISSO is approved in China for patients with locally advanced or metastatic EGFRm NSCLC with MET amplification after disease progression on EGFR-TKI therapy based on the SACHI Phase III trial. ORPATHYS is being jointly developed by AstraZeneca and HUTCHMED and commercialized by AstraZeneca. Lung cancer is the leading cause of cancer death globally, accounting for almost one in four (23%) cancer deaths. Lung cancer is broadly split into NSCLC and small cell lung cancer, with 80-85% of patients diagnosed with NSCLC. Approximately 75% of NSCLC patients are diagnosed with advanced disease. Additionally, about 10-15% of NSCLC patients in the US and Europe, and 30-40% of patients in Asia, have EGFRm NSCLC. MET is a tyrosine kinase receptor that has an essential role in normal cell development. MET overexpression or amplification can lead to tumor growth and the metastatic progression of cancer cells. An estimated 34% of tumors will develop high levels of MET overexpression or amplification after progression on a third-generation EGFR TKI. SAFFRON is a randomized, open-label, multi-center, global Phase III trial studying the efficacy of ORPATHYS (300mg twice daily) added to TAGRISSO (80mg once daily) versus doublet platinum-based chemotherapy in 338 patients with EGFRm, locally advanced or metastatic NSCLC with MET overexpression or amplification whose disease progressed following first- or second-line treatment with TAGRISSO. The trial enrolled patients in 230 centers across 29 countries, including in North America, Europe, South America and Asia. The primary endpoint is PFS and key secondary endpoints include OS and objective response rate (ORR). Patients were prospectively selected for SAFFRON using the high MET level cut-offs identified in the SAVANNAH Phase II trial. In SAVANNAH, MET overexpression or amplification levels were determined by two tests: immunohistochemistry (IHC), which detects if cancer cells have a particular protein or marker on their surface, and fluorescence in situ hybridization (FISH), which detects a specific DNA sequence from cancer cells. ORPATHYS (savolitinib) is an oral, potent and highly selective MET TKI that has demonstrated clinical activity in advanced solid tumors. It blocks atypical activation of the MET receptor tyrosine kinase pathway that occurs because of mutations (such as exon 14 skipping alterations or other point mutations), gene amplification or protein overexpression. ORPATHYS is approved in China for the treatment of adult patients with locally advanced or metastatic NSCLC with MET exon 14 skipping alteration, representing the first selective MET inhibitor approved in China. ORPATHYS also received a conditional approval in China for the treatment of patients with locally advanced or metastatic gastric cancer or gastroesophageal junction (GC/GEJ) adenocarcinoma patients with MET amplification who have failed at least two prior systemic treatments. ORPATHYS in combination with TAGRISSO is approved in China for patients with locally advanced or metastatic EGFR mutation-positive non-squamous NSCLC with MET amplification after disease progression on EGFR TKI therapy based on the SACHI Phase III trial. The combination was also granted a temporary authorization in Switzerland for the treatment of patients with locally advanced or metastatic EGFRm NSCLC and high levels of MET overexpression or amplification who progressed on prior treatment with TAGRISSO. This was based on results from the global SAVANNAH Phase II trial. TAGRISSO (osimertinib) is a third-generation, irreversible EGFR-TKI with proven clinical activity in NSCLC, including the treatment of central nervous system metastases. TAGRISSO (40mg and 80mg QD oral tablets) has been used to treat more than one million patients across its indications worldwide and AstraZeneca continues to explore TAGRISSO as a treatment for patients across multiple stages of EGFRm NSCLC. TAGRISSO is approved as monotherapy in more than 120 countries including the US, EU, China and Japan. Approved indications include for first-line treatment of patients with locally advanced or metastatic EGFRm NSCLC, locally advanced or metastatic EGFR T790M mutation-positive NSCLC, adjuvant treatment of early-stage EGFRm NSCLC and locally advanced, unresectable NSCLC following platinum-based chemoradiation therapy. TAGRISSO is also approved in combination with chemotherapy in more than 80 countries, including the US, EU, China and Japan, for first-line treatment of patients with locally advanced or metastatic EGFRm NSCLC. There is an extensive body of evidence supporting the use of TAGRISSO in EGFRm NSCLC, and it is the only targeted therapy shown to improve patient outcomes across all stages of the disease. In late-stage disease, TAGRISSO demonstrated improved outcomes as monotherapy in the FLAURA Phase III trial and in combination with chemotherapy in the FLAURA2 Phase III trial. TAGRISSO is also being investigated in this setting in combination with DATROWAY (datopotamab deruxtecan or Dato-DXd) in the TROPION-Lung14 and TROPION-Lung15 Phase III trials. TAGRISSO also showed improved outcomes in early-stage disease in the NeoADAURA and ADAURA Phase III trials and in locally advanced stages in the LAURA Phase III trial. As part of AstraZeneca’s ongoing commitment to treating patients as early as possible in lung cancer, TAGRISSO is also being investigated in the early-stage adjuvant resectable setting in the ADAURA2 Phase III trial.

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Latest News

HUTCHMED (China) Limited Announces Positive Results From SAFFRON Phase III Trial Demonstrating Statistically Significant And Clinically Meaningful Improvements In Progression-Free And Overall Survival For ORPATHYS Plus TAGRISSO In MET-Driven EGFR-Mutated Lung Cancer After Progression On TAGRISSO

AstraZeneca PLC And Daiichi Sankyo Co., Ltd. Report Enhertu Demonstrates Statistically Significant Improvement In Progression-Free Survival In First-Line HER2-Mutant Advanced Non-Small Cell Lung Cancer In DESTINY-Lung04 Phase III Trial

Price target decreased by 11% to UK£7.51

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