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

Investors are relatively neutral on the American Healthcare industry at the moment, indicating that they anticipate long term growth rates to remain steady. The industry is trading close to its 3-year average PE ratio of 65.5x. The industry is trading close to its 3-year average PS ratio of 2.1x.

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

Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 55.5x. Analysts are expecting annual earnings growth of 18.5%, which is higher than its past year's earnings growth of 9.6% per year.

U.S. Healthcare Sector Analysis

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Wed, 26 Aug 2026	US$7.4t	US$3.4t	US$116.0b	26.8x	63.7x	2.2x
Fri, 24 Jul 2026	US$6.8t	US$3.3t	US$123.6b	25.5x	54.8x	2x
Sun, 21 Jun 2026	US$6.4t	US$3.3t	US$121.7b	23.3x	52.2x	1.9x
Tue, 19 May 2026	US$6.2t	US$3.3t	US$122.6b	22.9x	50.4x	1.9x
Thu, 16 Apr 2026	US$6.3t	US$3.3t	US$121.4b	23.7x	52x	1.9x
Sat, 14 Mar 2026	US$6.2t	US$3.3t	US$124.5b	24.3x	50x	1.9x
Mon, 09 Feb 2026	US$6.6t	US$3.3t	US$125.4b	27.1x	52.4x	2x
Wed, 07 Jan 2026	US$6.5t	US$3.2t	US$135.6b	26.3x	47.8x	2x
Fri, 05 Dec 2025	US$6.4t	US$3.2t	US$133.6b	26x	48.2x	2x
Sun, 02 Nov 2025	US$6.0t	US$3.1t	US$134.4b	26.1x	44.4x	1.9x
Tue, 30 Sep 2025	US$5.7t	US$3.1t	US$137.6b	23.4x	41.1x	1.8x
Thu, 28 Aug 2025	US$5.7t	US$3.1t	US$137.2b	23.4x	41.5x	1.8x
Sat, 26 Jul 2025	US$5.6t	US$3.0t	US$129.3b	24.6x	43.1x	1.8x
Mon, 23 Jun 2025	US$5.4t	US$3.0t	US$127.5b	24x	42.5x	1.8x
Wed, 21 May 2025	US$5.5t	US$3.0t	US$126.1b	24x	43.2x	1.8x
Fri, 18 Apr 2025	US$5.3t	US$2.6t	US$97.6b	24.8x	54.3x	2x
Sun, 16 Mar 2025	US$5.7t	US$2.6t	US$74.8b	26.6x	75.6x	2.1x
Tue, 11 Feb 2025	US$5.9t	US$2.6t	US$84.4b	26.4x	69.6x	2.2x
Thu, 09 Jan 2025	US$5.9t	US$2.9t	US$79.4b	27.3x	73.7x	2x
Sat, 07 Dec 2024	US$6.1t	US$2.9t	US$77.6b	28.7x	78.3x	2.1x
Mon, 04 Nov 2024	US$6.2t	US$2.9t	US$71.3b	28.4x	86.4x	2.1x
Wed, 02 Oct 2024	US$6.2t	US$2.8t	US$60.0b	30.1x	104x	2.2x
Fri, 30 Aug 2024	US$6.3t	US$2.8t	US$54.0b	32.1x	116.1x	2.2x
Sun, 28 Jul 2024	US$6.4t	US$2.8t	US$60.8b	31.6x	105x	2.2x
Tue, 25 Jun 2024	US$6.2t	US$2.8t	US$62.5b	30.1x	99.2x	2.2x
Thu, 23 May 2024	US$6.2t	US$2.8t	US$64.3b	30.2x	96.8x	2.2x
Sat, 20 Apr 2024	US$5.9t	US$2.8t	US$84.4b	30x	70.2x	2.1x
Mon, 18 Mar 2024	US$6.2t	US$2.8t	US$84.5b	31.5x	73.7x	2.2x
Wed, 14 Feb 2024	US$6.1t	US$2.8t	US$82.0b	30.7x	74.7x	2.2x
Fri, 12 Jan 2024	US$6.4t	US$2.8t	US$90.1b	32x	71.1x	2.3x
Sun, 10 Dec 2023	US$6.0t	US$2.8t	US$91.4b	29.4x	65.2x	2.1x
Tue, 07 Nov 2023	US$5.7t	US$2.8t	US$86.7b	26.2x	66.3x	2x
Thu, 05 Oct 2023	US$5.8t	US$2.8t	US$98.3b	26.7x	59.2x	2.1x
Sat, 02 Sep 2023	US$6.1t	US$2.8t	US$98.7b	27.4x	61.9x	2.2x


US Market	-0.31%
Healthcare	2.66%
Life Sciences	7.42%
Biotech	3.03%
Pharma	3.00%
Healthtech	1.89%
Healthcare Services	0.77%
Medical Equipment	0.37%

Company	Last Price	7D	1Y	Valuation
MRK Merck	US$156.45	15.7% +US$52.5b	84.1%	PE121.6x
TMO Thermo Fisher Scientific	US$628.15	6.6% +US$14.5b	28.6%	PE33.3x
ABBV AbbVie	US$265.79	2.7% +US$12.1b	27.6%	PE74.9x
DHR Danaher	US$215.97	8.2% +US$11.5b	4.7%	PE38.1x
AMGN Amgen	US$442.24	4.0% +US$9.2b	52.7%	PE27.3x

Announcement • Aug 24

Insmed Incorporated Receives Approval for BRINSUPRI for the Treatment of Non-Cystic Fibrosis Bronchiectasis in Japan

Insmed Incorporated announced that Japan's Ministry of Health, Labour and Welfare (MHLW) has approved BRINSUPRI (brensocatib 25-mg tablet), an oral, once-daily treatment for non-cystic fibrosis bronchiectasis (NCFB) in adults and pediatric patients 12 years and older. BRINSUPRI, the first and only MHLW-approved treatment for NCFB, finally gives patients with NCFB and clinicians who treat the disease an option to manage this chronic and progressive disease that can lead to permanent lung damage and lung function decline. With this approval, BRINSUPRI is now approved for use in the U.S., Europe, and Japan. The approval of BRINSUPRI by the MHLW for the treatment of patients living with NCFB is based on results from the Phase 3 ASPEN study, which demonstrated that brensocatib significantly reduced pulmonary exacerbations compared with placebo over the 52-week treatment period and met multiple key secondary endpoints, including significantly prolonging the time to first exacerbation and significantly increasing the proportion of patients remaining exacerbation-free over the treatment period. Patients treated with brensocatib 25 mg also demonstrated significantly lower lung function decline at week 52, as measured by post bronchodilator forced expiratory volume in 1 second (FEV1), a standard measure of lung function. Brensocatib was generally well tolerated in the study. The most common treatment-emergent adverse events (TEAEs) occurring in at least 5.0% of patients were COVID-19, nasopharyngitis, cough, and headache. Non-cystic fibrosis bronchiectasis (NCFB) is a chronic, progressive, and inflammatory lung disease that causes the airways to become permanently widened due to a cycle of infection, inflammation, lung tissue damage, and mucociliary dysfunction. Patients with NCFB often experience repeated exacerbations, requiring antibiotic therapy and/or hospitalizations. Symptoms include chronic cough, excessive sputum production, shortness of breath, fatigue, and repeated respiratory infections, which can worsen the underlying disease. BRINSUPRI (brensocatib) is a small molecule, once-daily, oral, reversible inhibitor of dipeptidyl peptidase 1 (DPP1), designed to inhibit the activation of enzymes (neutrophil serine proteases) in neutrophils that are key drivers of chronic airway inflammation in NCFB. The therapy is approved in the United States as BRINSUPRI (brensocatib 10 mg and 25 mg tablets) and indicated for the treatment of non-cystic fibrosis bronchiectasis (NCFB) in adult and pediatric patients 12 years of age or older. In the European Union and United Kingdom, BRINSUPRI (brensocatib 25 mg tablets) is approved for the treatment of NCFB in patients 12 years of age and older with two or more exacerbations in the prior 12 months. In Japan, BRINSUPRI (brensocatib 25 mg tablets) is approved for the treatment of patients with non-cystic fibrosis bronchiectasis (NCFB) in adult and pediatric patients 12 years and older. BRINSUPRI is indicated for the treatment of non-cystic fibrosis bronchiectasis (NCFB) in adult and pediatric patients 12 years of age and older. Treatment with BRINSUPRI is associated with an increase in dermatologic adverse reactions, including rash, dry skin, and hyperkeratosis. Monitor patients for development of new rashes or skin conditions and refer patients to a dermatologist for evaluation of new dermatologic findings. Treatment with BRINSUPRI is associated with an increase in gingival and periodontal adverse reactions. Refer patients to dental care services for regular dental checkups while taking BRINSUPRI. Advise patients to perform routine dental hygiene. It is unknown whether administration of live attenuated vaccines during BRINSUPRI treatment will affect the safety or effectiveness of these vaccines. The use of live attenuated vaccines should be avoided in patients receiving BRINSUPRI. The most common adverse reactions =2% in the ASPEN trial included upper respiratory tract infection, headache, rash, dry skin, hyperkeratosis, and hypertension. The safety profile for adult patients with NCFB in WILLOW was generally similar to ASPEN, except for a higher incidence of gingival and periodontal adverse reactions. In ASPEN, there was an increase from baseline in average ALT, AST, and alkaline phosphatase levels at all time points from Week 4 through Week 56 in both BRINSUPRI 10 mg and 25 mg arms compared to placebo. The incidence of ALT >3X upper limit of normal (ULN) was 0%, 1.2%, and 0.9%; the incidence of AST >3X ULN was 0.2%, 0.3%, and 0.5%; and the incidence of alkaline phosphatase >1.5X ULN was 2.5%, 4.1%, and 4.0% in patients treated with placebo and BRINSUPRI 10 mg and 25 mg, respectively. In ASPEN, the incidence of skin cancers among patients treated with BRINSUPRI 10 mg and 25 mg was 0.5% and 1.9%, respectively, compared to 1.1% in placebo-treated patients. In ASPEN, the incidence of alopecia among patients treated with BRINSUPRI 10 mg and 25 mg was 1.5% and 1.6% respectively, compared to 0.4% in placebo-treated patients. The safety and effectiveness of BRINSUPRI for the treatment of NCFB have been established in pediatric patients aged 12 years and older. Common adverse reactions in pediatric patients aged 12 years and older enrolled in ASPEN were consistent with those in adults. The safety and effectiveness of BRINSUPRI have not been established in pediatric patients younger than 12 years of age.

Announcement • Aug 24

Gilead Sciences, Inc. Receives European Commission Approval for Trodelvy Plus Pembrolizumab in First-Line Metastatic Triple-Negative Breast Cancer

Gilead Sciences, Inc. announced that the European Commission has granted marketing authorization for Trodelvy (sacituzumab govitecan-hziy) in combination with Keytruda (pembrolizumab) for the treatment of adult patients with unresectable, locally advanced or metastatic triple-negative breast cancer (TNBC) who have not received prior systemic therapy for metastatic disease and whose tumors express PD-L1 with a combined positive score (CPS =10). Trodelvy plus Keytruda is the first and only antibody-drug conjugate (ADC) plus immunotherapy combination to be approved in first-line metastatic TNBC in the European Union’s 27 member states, as well as Norway, Iceland and Liechtenstein. This decision follows the recent European Commission approval of Trodelvy as monotherapy for the treatment of adult patients with unresectable locally advanced or metastatic TNBC who have not received prior systemic therapy for metastatic disease and are not candidates for PD-1 or PD-L1 inhibitor therapy. Together, these approvals establish Trodelvy as the backbone therapy for patients with first-line metastatic TNBC across PD-L1 status in Europe. The approval is based on data from the Phase 3 ASCENT-04 /KEYNOTE-D19 study which demonstrated a highly statistically significant and clinically meaningful progression-free survival of Trodelvy plus Keytruda versus the combination of standard of care chemotherapy plus Keytruda as a first-line treatment. In ASCENT-04/KEYNOTE-D19, Trodelvy demonstrated a 35% reduced risk of disease progression or death in patients with PD-L1-positive metastatic TNBC. Metastatic TNBC has historically been difficult to treat, with a poor prognosis and an urgent need for more effective first-line options. With this approval, Trodelvy is now positioned to address this need across the full spectrum of the disease, building on its extensive clinical legacy in later lines of therapy and its established safety and efficacy profile in more than 75,000 patients treated globally. Trodelvy (sacituzumab govitecan-hziy) is a first-in-class Trop-2-directed antibody-drug conjugate. Trop-2 is a cell surface antigen highly expressed in multiple tumor types, including in more than 90% of breast and lung cancers. Trodelvy is intentionally designed with a proprietary hydrolyzable linker attached to SN-38, a topoisomerase I inhibitor payload. This unique combination delivers potent activity to both Trop-2 expressing cells and the tumor microenvironment through a bystander effect. The U.S. FDA and the European Commission have approved the use of Trodelvy alone or in combination with pembrolizumab in first-line metastatic TNBC, across PD-L1 status. It is also globally approved for second-line and later metastatic TNBC and pre-treated HR+/HER2- metastatic breast cancer. Healthcare professionals have substantial clinical experience with Trodelvy, with more than 75,000 breast cancer patients treated since 2020. It is the only ADC with four positive Phase 3 trials in HER2-negative metastatic breast cancer and the only Trop-2-directed ADC to demonstrate a meaningful overall survival benefit in two distinct types of metastatic breast cancer. Trodelvy is currently being evaluated in multiple ongoing Phase 3 trials across a range of tumor types with high Trop-2 expression, including in lung and gynecologic cancers, where previous proof-of-concept studies have demonstrated clinical activity. TRODELVY (sacituzumab govitecan-hziy) is a Trop-2–directed antibody and topoisomerase inhibitor conjugate indicated in adult patients: Locally Advanced or Metastatic Triple-Negative Breast Cancer First Line As a single agent for the first-line treatment of unresectable locally advanced or metastatic triple-negative breast cancer (mTNBC) who are not candidates for PD-1 or PD-L1 inhibitor-based therapy In combination with pembrolizumab or pembrolizumab and berahyaluronidase alfa-pmph for the first-line treatment of unresectable locally advanced or mTNBC whose tumors express PD-L1 [Combined Positive Score (CPS =10)] as determined by an FDA-authorized test Second Line or Later For the treatment of unresectable locally advanced or mTNBC who have received two or more prior systemic therapies, at least one of them for metastatic disease. Locally Advanced or Metastatic HR-positive, HER2-negative Breast Cancer For the treatment of unresectable locally advanced or metastatic hormone receptor (HR)-positive, human epidermal growth factor receptor 2 (HER2)-negative (IHC 0, IHC 1+, or IHC 2+/ISH–) breast cancer who have received endocrine-based therapy and at least two additional systemic therapies in the metastatic setting. TRODELVY can cause severe, life-threatening, or fatal neutropenia. Withhold TRODELVY for absolute neutrophil count below 1500/mm3 or neutropenic fever. Monitor blood cell counts periodically during treatment. Primary prophylaxis with G-CSF is recommended for all patients at increased risk of febrile neutropenia. Initiate anti-infective treatment in patients with febrile neutropenia without delay. TRODELVY can cause severe diarrhea. Monitor patients with diarrhea and give fluid and electrolytes as needed. At the onset of diarrhea, evaluate for infectious causes and, if negative, promptly initiate loperamide. If severe diarrhea occurs, withhold TRODELVY until resolved to =Grade 1 and reduce subsequent doses. Severe hypersensitivity reaction to TRODELVY. Neutropenia: Severe, life-threatening, or fatal neutropenia can occur as early as the first cycle of treatment and may require dose modification. Neutropenia occurred in 64% of patients treated with TRODELVY. Grade 3-4 neutropenia occurred in 48% of patients. Febrile neutropenia occurred in 6%. Neutropenic colitis occurred in 1.4%. Primary prophylaxis with G-CSF is recommended starting in the first cycle of treatment in all patients at increased risk of febrile neutropenia, including older patients, patients with previous neutropenia, poor performance status, organ dysfunction, or multiple comorbidities. Monitor absolute neutrophil count (ANC) during treatment. Withhold TRODELVY for ANC below 1500/mm3 on Day 1 of any cycle or below 1000/mm3 on Day 8 of any cycle. Withhold TRODELVY for neutropenic fever. Treat neutropenia with G-CSF and administer prophylaxis in subsequent cycles as clinically indicated or indicated in Table 2 of USPI. Diarrhea: Diarrhea occurred in 62% of all patients treated with TRODELVY. Grade 3-4 diarrhea occurred in 10% of patients. One patient had intestinal perforation following diarrhea. Diarrhea that led to dehydration and subsequent acute kidney injury occurred in 0.6% of all patients. Withhold TRODELVY for Grade 3-4 diarrhea and resume when resolved to =Grade 1. At onset, evaluate for infectious causes and, if negative, promptly initiate loperamide, 4 mg initially followed by 2 mg with every episode of diarrhea for a maximum of 16 mg daily.

U.S. Healthcare Sector Analysis

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