The healthcare segment suffered particularly heavily in the first half of the year. After soaring valuations during the Covid-19 pandemic, the subsequent crash was all the more severe. Uncertainty around tariffs, the U.S. healthcare system, and drug pricing weighed heavily on valuations. And since most of the action takes place in the U.S., the weak U.S. dollar further exacerbated the situation.

«That is the market reality we need to adapt to,» said Veit de Maddalena, Executive Chairman of Bellevue, at the presentation of the half-year results on Thursday in Zurich. «But we have the stamina to endure this dry spell, and we aim to maintain flexibility through targeted investments.»

Ongoing cost-cutting measures are also expected to help. Initial effects should be visible in the second half, with full impact expected next year. «We have set important strategic directions over the past three months,» de Maddalena said.

According to CFO Stefano Montalbano, cost savings are expected to be in the low single-digit million range.

10 to 13 Percent Fewer Employees

The measures also affect staffing. A reduction in headcount of 10 to 13 percent is planned. «This is a difficult time, and some employees have already left the company,» said the Chairman.

Germany will remain a core market for Bellevue. However, portfolio management has already been relocated to Zurich, and Germany will now function solely as a sales market. At the same time, expansion in the Asia region is being intensified.

At Adbodmer, the private equity-focused subsidiary, a management buy-out is being considered. The close collaboration will continue, but both sides would gain greater entrepreneurial freedom, de Maddalena added.

Undervalued Sector

Bellevue Asset Management CEO Markus Peter remains confident in the advantages of the healthcare sector: the innovative strength of the companies, their non-cyclical and recession-resistant nature, and the rising demand driven by demographic trends. He added that interest rates have not played a major role in the recent weak performance.

Currently, the sector is trading at a 20 percent discount to the MSCI World index. Additionally, its weighting in the S&P 500 has fallen from around 16 to 9 percent. «Investors go where they see momentum. When they start to feel it again in healthcare, they’ll come back,» he said.

One key factor for a recovery, according to de Maddalena, would be an end to uncertainty. «We need to focus on our investment performance, stay disciplined, and respond to client needs,» he said. This includes the launch of new products.

«We are setting our sails – and when the wind picks up again, we aim to move forward.»