By Malcolm McPartlin, co-manager of the Aegon Global Sustainable Equity strategy
The world has seen immense progress in healthcare over the past century, particularly in medical innovation and drug discovery.
At the turn of the 19th century, global life expectancy was estimated to be 32 years. By 2020, it was 72 years. While that is a positive statistic, the disparity within it is not.
In fact, the life expectancy gap globally is widening. World Health Organisation (WHO) statistics show that average life expectancy in many African nations languishes in the 50s and low 60s – far behind many developed countries, where it is above 80.
It is important to emphasise that this is not just a developed versus developing world issue. It also exists in developed countries such as the UK, where men and women in central Glasgow – Scotland’s biggest city – are expected to live 6.5 and 5.8 years respectively less than those in East Renfrewshire, which encompasses some of the outskirts of the city and its surrounding areas . This is both a local and a global issue.
An increase in wealth and living standards has also brought a rise in what the WHO calls non-communicable diseases (NCDs), also known as chronic diseases. These cover what we tend to think of as the main health issues in the developed world such as stroke, heart disease, cancer, diabetes and mental health issues. They now account for 41 million deaths per year, which is equivalent to 71% of all deaths worldwide.
See also: Hipgnosis Song Management calls Shot Tower report ‘inaccurate and misleading’
Research and innovation have meant that many cancers and diseases can be treated effectively and cured if detected early.
Drug discovery and design have come a long way since the days of iteratively applying known naturally occurring toxins against disease targets until a therapeutic effect was observed. Biology is fast becoming digital, driven by rapid deflation in the costs of gene sequencing.
The prospects of what AI can do to further accelerate the drug development process is exhilarating.
Taken together, these advances make health and wellbeing a diverse and exciting theme to invest in and one with tangible positive impacts. The pace and scale of innovation is providing a paradigm shift in healthcare and is significantly improving people’s lives.
Below are some examples of companies we hold in the Aegon Global Sustainable Equity fund that are pushing innovation within the sector.
Veracyte
Veracyte is small-cap molecular diagnostics company that uses genomic technology to help clinicians more accurately diagnose and treat cancer. It aims to help better identify and guide treatment options for patients across several cancer types.
It does this by using a combination of RNA sequencing and machine learning. Over 400,000 patients across 35 countries have benefitted from Veracyte’s tests and the company estimates up to seven million people could benefit in time.
Icon
Icon is a clinical research organisation used by the pharmaceutical and biotechnology industry to accelerate and improve drug trial processes.
With the average cost of developing a new drug now over $2 billion, Icon adds value by leveraging its experience and data in large-scale trials to reduce both the cost and time to develop drugs for their customers.
By providing this essential service Icon helps pharmaceutical and innovative biotechnology companies focus on their core competence of researching and developing new treatments.
Danaher
Danaher is a leading global life sciences and diagnostics company, which are committed to accelerating the power of science and technology to improve human health. Across Biotechnology, Life Sciences and Diagnostic divisions it provides a range of innovative products and services to develop and deliver improving health care outcomes for society.
Danaher’s products can be found in a wide range of settings from laboratories working on leading edge healthcare advancements, to hospitals where they support doctors diagnose diseases. Danaher’s obsession with continuous improvement and customer satisfaction has made it not just a successful company, but one that also has a positive impact on society.
