00:00 Spokesman a
Moderna shares that it is moving to the head today, the FDA provides the company’s limited approval for its lower dose of Covid-19. This comes as a pharmaceutical industry is under pressure, facing a destroyed relationship with HHS Head RFK JR, as well as more risks of tariff policy. Our next guest names two main areas of investor opportunities in the health space. Joining us now, Jason Craicer, manager of Morgan Stanley Investment Management portfolio. Jason, it’s great to talk to you this morning. Obviously, as mentioned, many winds for the pharmaceutical industry. What gives you some optimism about how pharmaceutical shares could do in the second half of the year at the moment?
00:52 Jason Crazer
Probably. Well, we are trying to focus on areas where there is less attention that the administration has. Oh, medical devices and animal health are two areas that, uh, really avoid many of the spotlights, uh, in terms of administration. Um, you know, if you look at healthcare, this year was very, very variable. Oh, the bottom of the ranking, uh, in terms of S&P performance in terms of the S&P sector. So, uh, trying to find areas where, uh, there are opportunities. On the part of the medical device, we really like, uh, intuitive surgical. This is a robotic surgical company. Oh, this is a very cool company that this is hmm, very well, innovative in terms of his own, uh, ah, design of his new products that help surgeons become better, better in their work. Uh, the addressable market for UH, for the five DA Vinci, which is their new, uh, their new robot, it had about eight million global procedures. Oh, and this is in neurology, general surgery, gynecology. The growth of the company’s procedure is in the range of 13 to 16%. This is volume growth. In fact, we do not see such growth in UH, in healthcare, so this is a great long -term composition. Hmm, you know, in other areas, uh, we really like the health of the animals. Hmm, Zoetus is UH, the leader in the UH, in both satellites, which is home and livestock space. Hmm, for the last 10 years Zoetus has grown over the market. And that was hmm, mainly for this thesis, it really is their innovation. They are very large in, pain, fleas and ticks and uh, also in dermatology. The pain is recently. Oh, there are 27 million dogs under the care of Uh, veterinarians in the United States who have HM, osteoarthritis and their pain medicine is, really, just scratches the surface. They are just uh, attributed to, selling this space to about a million dogs.
04:39 Spokesman a
Yes.
04:40 Jason Crazer
There were many questions on the uh, on the market for, uh, up, pricing drugs, in human health. Um, keep in mind, no Medicare. There is no dog Medicare, so from this point of view, uh, you know, we like animal health.
05:04 Spokesman a
Yes, I thought it was a really interesting frame, Jason. Is investment in animal health is a way to resist Washington your health portfolio right now?
05:23 Jason Crazer
We think so. We think so. I mean, you know, really, if you look, it’s a cash pay market. As I mentioned, there is no Medicare. Um, as we all know, people love their pets and they will be, uh, ready to spend a lot on their pets, somehow out of their pocket. So, while not, uh, the sector is completely immunized against economic, uh, uncertainties, uh, the pet market is the one who is, you know, very exciting.
06:08 Spokesman a
And my guest, host, Jay Woods, has a question for you, Jason.
06:14 Jay Woods
Hey Jason, I think you’re there, you’re big. Pause of ETF, Pawz is a conglomerate of all those UH, stocks. And you mentioned Zoetis, you may have already answered the bigger part of this question, but why does it stand out? Oh, because there are other options in the insurance sector. Oh, was it the cattle of that? What was you that left you most about Zoetis?
06:50 Jason Crazer
Well, if you think about it, Zoetis, Zoetis was a rotation around, 12 years ago by Pfizer. And their roots are really in the innovative side of animal health, not livestock. They do it, they are a leader in livestock. Hmm, and so theirs, uh, the innovative engine is really what is attractive. They come up with new pet medicines, which have hmm, have great results. And this really nourishes their growth and you know that they are over a market manufacturer, um, which made it, attractive to us.
07:55 Spokesman a
Jason, I really appreciate my time this morning. Thank you very much.
08:00 Jason Crazer
Thank you.