The first half of 2025 in particular was marked by challenging external market conditions, a weak dollar and significant uncertainties stemming from US tariffs and pharmaceutical pricing. Overall, however, the situation stabilized in the second half of the year.

The agreement between Pfizer and the US government regarding the most-favored-nation clause and the global pricing framework for new medicines brought generalist investors back into the healthcare sector.

In the fourth quarter of 2025, the global healthcare sector recorded the strongest performance among all GICS sectors (Global Industry Classification Standard). Healthcare ETFs also saw renewed inflows.

«Signs of a trend reversal became visible in the fourth quarter,» said Bellevue Chairman and CEO Veit De Maddalena (pictured below) at a media conference on Tuesday in Zurich.

(Image: Bellevue)

Last year, it was necessary to align Bellevue with market realities. This included restructuring the German operation into a pure sales entity and selling the private equity specialist Adbodmer via a management buyout. Existing funds and mandates were transferred from Bellevue AM Germany to the multi-asset team in Zurich. Some investors did not follow this move, resulting in a decline in assets under management. The company also experienced leadership changes in key positions last summer. In June, De Maddalena assumed the role of CEO in addition to his position as Chairman of the Board.

Staff Changes and Costs

«We had to ensure, given the market reality in the first half of the year, that the company was also positioned appropriately on the cost side,» the CEO emphasized. «We effectively replaced around one-third of the workforce, but this was necessary.» He described it as a repositioning: «We made conscious decisions about where to invest and hired new staff in sales and distribution.»

Last year, Bellevue recorded 33 departures and 17 new hires, with a total workforce of around 90 employees. This was also reflected in costs. Personnel expenses fell by around 16 percent and general expenses by 13 percent. Due to lower operating income, the cost-income ratio deteriorated to 86 percent, compared with 76 percent in 2024. «We cannot be satisfied with that, nor with the return on equity of 1,7 percent.»

75 Percent of Assets in Dollar

Bellevue holds 88 percent of its assets in the healthcare sector. The share denominated in dollars stands at 75 percent. The negative currency effect from the 12,6 percent depreciation of the dollar last year amounted to 550 million francs.

As of the end of December, liquid assets totaled 33,8 million francs and equity amounted to 117,0 million francs. The equity ratio stood at 75,2 percent, indicating that Bellevue is solidly financed.

«We have reduced or sold activities that were not aligned with our strategy. After the transformation year 2025, we are now in a transition year,» De Maddalena stressed.

Sector at a Structural Turning Point

The CEO sees the healthcare sector at a structural turning point. Regulatory conditions are improving, there is a broad innovation pipeline and M&A activity is increasing. In addition, the sector continues to trade at a valuation discount to the global equity market, and European small and mid-caps are returning to investors’ focus.

For the current year, the CEO intends to «continue on the chosen path with focus.» He expects assets under management to increase by 10 percent. «We want to return the company to a solid foundation, and that means delivering strong investment performance. We are well positioned to benefit disproportionately from a recovery.»

As long-term targets, Bellevue’s management cites a cost-income ratio of below 70 percent and a return on equity of above 20 percent. «We aim to implement a shareholder-friendly dividend policy based on earnings,» the CEO emphasized.