Healthcare's Fundamentals Remain Strong Despite the AI Market Mania

Janus Henderson argues that healthcare has been overlooked during the AI-driven rally, creating attractive opportunities across biotechnology, pharmaceuticals, managed care and medical technology.

• The report argues that healthcare's recent underperformance reflects market concentration around AI rather than deteriorating fundamentals, with innovation continuing across biopharma and medical technology.
• Janus Henderson highlights biotechnology, large pharmaceutical companies and managed care insurers as particularly attractive, supported by strong clinical pipelines, rising M&A activity and improving earnings visibility.
• The firm also believes medtech and life science tools now trade at unusually attractive valuations after a sharp correction, creating opportunities for long-term investors as demographic trends and medical innovation remain intact.

Read the full outlook for Janus Henderson's view on healthcare opportunities in the second half of 2026.