Stewart Investors Spotlights Six Firms Revolutionizing Global Health Access Beyond Pharmaceuticals
Stewart Investors Spotlights Six Firms Revolutionizing Global Health Access Beyond Pharmaceuticals
In light of ongoing debates regarding the pricing of pharmaceuticals, Stewart Investors has identified six standout companies that are making significant contributions to global health beyond the realms of traditional medicine. These companies not only focus on enhancing health and hygiene but also aim to tackle access inequities across diverse populations.
Stewart Investors, a respected long-only global equity specialist managing $16.5 billion in assets, has flagged these companies operating across three continents as key players in promoting sustainable health practices. According to Clare Wood, a portfolio specialist at Stewart Investors, the healthcare industry is often inflated by pharmaceutical-centric narratives, which obscure the importance of broader health-related investments.
The Selected Companies
The identified organizations, situated in the U.S., U.K., and Brazil, demonstrate how innovative approaches to healthcare can yield both financial and social benefits:
1. Brown Brown, Inc.
Brown Brown (BB) operates from the United States and serves as an insurance brokerage firm helping individuals and small to medium enterprises (SMEs) navigate unexpected events. Their role in facilitating access to health insurance is crucial in supporting employee wellness and retention, significantly reducing risks for employers. Since early 2024, the company's impressive growth metrics include a compound annual growth rate for sales of 15.1% and earnings per share of 19.7%.
2. Cintas Corporation
Known for its corporate uniforms, Cintas also excels in workplace safety and hygiene. By providing cleaning supplies and protective equipment, Cintas bolsters health standards across various sectors. Their commitment to the circular economy is reflected in their business model, which emphasizes the reuse and recycling of resources. Cintas has seen sales growth at an impressive rate of 6.8%, coupled with a noteworthy free cash flow increase of 16.1% over the past five years.
3. Haleon
This U.K.-based consumer health giant specializes in oral health products and over-the-counter medications. With brands like Sensodyne and Advil, Haleon empowers consumers to manage their health proactively. This company, spun out of GSK in 2022, reported a sales growth rate of 5.8% and a free cash flow increase of 24.5%.
4. Linde
Linde is integral to healthcare, providing essential gases for various applications within the medical field, including surgeries and emergency care. The company has recorded solid financial growth with an increase in sales at a 3.2% rate as of the end of 2024.
5. Raia Drogasil
As Brazil's largest pharmacy chain, Raia Drogasil leads the way in improving access to medications while reducing costs through economies of scale. Their commitment to broadening service options is evident as they enhance digital healthcare access, enjoying a remarkable growth in sales at 17.2% annually over the last five years.
6. Veeva Systems
A cloud-based innovator, Veeva Systems significantly enhances productivity within the pharmaceutical and life sciences industries. Their advanced solutions facilitate clinical trials, ultimately expediting the transition from lab to treatment. This company has experienced robust growth with a 20% increase in sales per year since late 2019.
Conclusion
The health equity challenges persist not only in developing nations but also in rich, urban landscapes. Companies like Brown Brown and Raia Drogasil are vital in disrupting traditional patterns of healthcare access and mitigating disparities. Stewart Investors believes that these six companies not only yield attractive returns for investors but also lay the groundwork for healthier communities worldwide.
For investors interested in responsible and sustainable healthcare investments, the findings from Stewart Investors offer valuable insights into the potential of companies reshaping the health landscape. The firm’s Portfolio Explorer tool allows a deeper dive into investment strategies and indicates how these companies align with sustainable development goals across the globe.