How rising US healthcare costs can open up stockpicking opportunities

Costs "unsustainable"

Dani Saurymper, manager of the £498m AXA Framlington Health fund, believes the "unsustainable" rise in US healthcare expenditure is creating opportunities in companies which can help cut costs across the system.

Figures from the Centre for Medicare & Medicaid Services, show the US spent 17.8% ($3.5trn) of GDP on healthcare last year; a figure which is expected to grow to 25.2% ($5trn) by 2022. According to Saurymper (pictured), the increase in expenditure comes as US life expectancy, currently at 78.7 years, continues to rise, while a growing number of drugs enter the market, with the US Food & Drug Administration approving a 19-year record of 45 new drugs last year alone. Is it time to take profits in US healthcare? He said the projected expenditure is "unsustainable" and is creating a ne...