Core Insights - The article discusses the author's investment strategy and focus on Viking Therapeutics (VKTX), highlighting its potential as a long-term investment in the biotech sector [1]. Group 1: Investment Strategy - The author conducts an annual review of their portfolios, including top investment ideas from the Compounding Healthcare group [1]. - The focus is on innovative companies that are developing breakthrough therapies and pharmaceuticals, particularly those with catalysts for potential acquisitions [1]. Group 2: Company Overview - Viking Therapeutics is identified as one of the author's longest-standing investments, indicating confidence in its future performance [1]. - The author emphasizes a passion for biotech and life-saving therapies, stemming from years of experience in the medical field [1].

Core Viewpoint - The establishment of the Anhui Gaotou Guotai Haitong Health M&A Equity Investment Fund marks a significant move in the private equity investment landscape, with a total capital contribution of 500 million RMB [1] Group 1: Fund Details - The fund is a limited partnership, with the managing partner being Junshi Venture Capital (Hainan) Co., Ltd. and Guotai Junan Innovation Investment Co., Ltd. [1] - The fund's operational scope includes private equity investment, investment management, and asset management activities [1] Group 2: Contributors - The fund is jointly funded by Junshi Biological, Anhui Small and Medium Enterprises Development Phase II Fund Co., Ltd., and Guotai Junan Innovation Investment Co., Ltd. [1]

Core Insights - Investing in healthcare stocks can leverage long-term trends in a rapidly evolving industry, particularly for those with a 40-year investment horizon [1] - Identifying companies with strong, innovative pipelines and durable market demand is crucial for successful investment in healthcare [1] Company Overview: NovoCure - NovoCure is a pioneer in Tumor Treating Fields (TTFields), a unique therapy that disrupts cancer cell division using low-intensity electric fields, offering advantages over traditional treatments [4] - The company is currently approved for treating glioblastoma (GBM) and malignant pleural mesothelioma, with potential to expand into a wide range of solid tumors, representing significant growth opportunities [5] - NovoCure's core GBM business has shown consistent patient and revenue growth, with projected annual revenue of $605.2 million for 2024, reflecting a 19% increase from 2023 [6] - The company is expanding internationally, with new coverage decisions and product launches in markets such as Japan, Germany, and France, aiming to evolve into a platform therapy company with four cancer indications by the end of 2026 [6] - Despite operating at a net loss due to high R&D and marketing costs, NovoCure maintains a strong cash and short-term investments balance of over $1 billion [7] - Revenue growth of 8% was reported in the third quarter of 2025, indicating ongoing business development [7] Investment Considerations - NovoCure represents a high-risk but potentially high-reward investment opportunity due to its innovative technology [8] - The company faces challenges but has a robust business model that could lead to sustained long-term revenue growth [8]

Core Viewpoint - The healthcare industry is characterized by its resilience and defensive nature, making it less sensitive to economic cycles, which provides stability during market volatility and economic slowdowns [1][2]. Group 1: AbbVie - AbbVie has successfully transitioned from the loss of exclusivity of its key drug Humira by focusing on newer products, including immunology drugs Skyrizi and Rinvoq, which have shown strong sales growth [3][4]. - The company has secured a patent settlement for Rinvoq, extending its exclusivity in the U.S. until 2037, with projected annual revenues of $11 billion by 2027 for Rinvoq and $20 billion for Skyrizi [4]. - AbbVie reported a worldwide net revenue of $15.4 billion in Q2 2025, a 6.6% increase year over year, with immunology net revenue rising 9.5% and neuroscience revenue increasing by 24.2% [7]. - AbbVie has a strong dividend history, being a Dividend King with over 50 consecutive years of dividend increases, currently yielding about 2.8% [8]. Group 2: Medtronic - Medtronic has a diversified portfolio of medical devices across four segments: Cardiovascular, medical surgical, neuroscience, and diabetes, with the cardiovascular segment generating approximately $12.5 billion in revenue in fiscal 2025 [9][10]. - The neuroscience segment produced over $9.8 billion in revenue in fiscal 2025, with both cardiovascular and neuroscience segments accounting for nearly 70% of total revenue [11]. - The FDA approved Medtronic's BrainSense adaptive deep brain stimulation system for Parkinson's disease, marking a significant advancement in managing symptoms [12]. - Medtronic plans to separate its lower-margin diabetes business into a standalone company to focus on higher-margin growth areas [14]. - Following engagement with Elliott Investment Management, Medtronic appointed new board members and established committees to enhance growth and operational efficiency [15]. - Medtronic has a nearly 50-year history of increasing dividends, with a current yield of about 3% [17].