BB Healthcare announces first half results and new chairman

BB Healthcare announces first half results and new chairman – BB Healthcare (BBH)’s chairman, professor Justin Stebbing, has stepped down from his role due to his other commitments, it has been announced. He will remain at the company in the capacity of non-executive director and will be succeeded as chairman by Randeep Grewal (currently a non-executive director).

The company also reported half-year results to 31 May 2019, this morning. Over a longer full year period, we note that the shares moved from a slight discount to a premium of 1.7%.

Performance summary

For the six months ended 31 May 2019 2018
Share price total return per Ordinary Share1 -2.50% 4.00%
NAV total return per Ordinary Share1 -3.20% 7.50%
MSCI World Healthcare Index total return (GBP) -4.50% 1.70%

Manager’s view

Paul Major and Brett Darke, from Bellevue Advisors (the manager), had this to say: “Once again, we look back on a period where market commentary has been dominated by macro-political themes predominantly emanating from the United States, with the added spectre of nervousness regarding absolute valuations and market levels.

Healthcare has long been a political football. It is one of those few policy areas in which interest spans the demographic and economic spectrum. Put simply, we all care. As such, it is reasonable to think the polemics continue and, whilst specialist investors may well appreciate the nuances of the policies, the over-stretched generalist is more likely to pack up and move on to less unfavourable climes.

We expect that the US political debate around healthcare will continue to focus on three issues: Firstly, populist measures to curb drug pricing/out of pocket expenses (likely limited in their actual consumer benefits or negative impact on the drug industry and its supply chain). Secondly, Democrat-led efforts to widen the availability of healthcare (assuming of course that lack of access to insurance is actually the reason why many Americans are uninsured or under-insured, rather than the high cost of services in the first place) and finally, the potential impact of further trade/tariff barriers on global customer and supply chain networks.”

BBH: BB Healthcare announces first half results and new chairman

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