The healthcare industry sector can be broken down into two main sub-sectors, pharmaceuticals, biotechnology, and life sciences industries, which focus on the development manufacturer and supply of new drugs, devices, and other therapeutic products.
Leading companies in this sector include Johnson, Johnson, Pfizer, and Novartis.
The second subsector includes companies which supply medical equipment and services, including hospitals and nursing homes.
The largest companies in the subsector are UnitedHealthcare, CVS, health and Cigna, which are all us. US-based companies who derive a large proportion of their revenues from their US health insurance business.
The companies within the pharmaceuticals, biotechnology, and life sciences sub-sector are not so geographically concentrated in the us For example, Novartis is a company since they're not so dependent on the US healthcare industry in terms of modeling and valuing companies within the healthcare industry sector, those within the pharmaceuticals, biotechnology, and life sciences sub-sector require specific modeling due to the difficulties around forecasting their revenues within the healthcare equipment and services sub-sector.
Those companies, which are heavily dominated by their health insurance operations should be valued in the same way in which other insurance companies are valued.
