Innovative Companies Enhancing Global Health
Brown & Brown, Cintas Corporation, Haleon, Linde, Raia Drogasil, and Veeva Systems are pioneering more equitable access to health and hygiene.
Importance of Health Beyond Pharmaceuticals
While pharmaceuticals often dominate headlines due to rising drug costs and other concerns, Stewart Investors highlights that numerous attractive investment opportunities exist within the broader health ecosystem. These opportunities include companies that focus on preventative care, overall health improvement, and environmental sustainability.
Stewart Investors, a prominent investment firm managing approximately US$16.5 billion globally, has selected six companies across three continents that are making significant strides in enhancing health beyond the realm of traditional pharmaceuticals. These organizations are committed to sustainable practices while achieving satisfying returns for their investors.
Health and Investment Perspectives
Clare Wood, a portfolio specialist at Stewart Investors, emphasizes that while pharmaceuticals are often viewed as the main focus for health investors, many companies operate outside this narrow scope. Recent discussions on healthcare have spotlighted the need for access and affordability of medicines; however, health is multifaceted and also encompasses prevention and overall societal wellness.
Highlighting Six Game-Changing Companies
Stewart Investors has identified six noteworthy companies that contribute to healthier societies through their innovative offerings and sustainable practices:
1. Brown & Brown
Brown & Brown (B&B), a leading insurance brokerage firm in the U.S., aids businesses in managing unexpected costs by providing health insurance and related services. Their focus on employee well-being leads to improved retention and reduced risks for employers. Since January 2024, B&B has shown impressive growth in sales, free cash flow, and earnings per share.
2. Cintas Corporation
Cintas is renowned for providing an extensive range of workplace hygiene and safety products aside from its trademark uniforms. By supporting corporate hygiene, Cintas plays a crucial role in decreasing illness transmission in work environments. Their rental services embrace circular economy principles, which significantly lower water and energy usage with their laundering processes. The company has enjoyed steady growth and has been a part of Stewart Investors’ portfolio since January 2025.
3. Haleon
Haleon stands out as a global leader in consumer health, advancing wellness through various products like vitamins and over-the-counter medicines. Emerging from GSK in 2022, Haleon uniquely focuses solely on consumer health, benefiting individuals by emphasizing preventive care and self-management. It has seen consistent growth since being included in Stewart Investors’ holdings in November 2024.
4. Linde
Another noteworthy contributor is Linde, which specializes in producing essential gases for healthcare applications. Their extensive product line supports critical medical services, including surgery and patient care. With a commitment to sustainability, Linde has also been a Stewart Investors holding since November 2023, reflecting excellent financial growth.
5. Raia Drogasil
As Brazil's largest retail pharmacy chain, Raia Drogasil significantly increases medicine access while lowering consumer prices through economies of scale. They have effectively integrated in-store services and digital platforms to broaden healthcare access. Their sustained financial performance makes them a valuable asset within Stewart Investors’ portfolio since October 2014.
6. Veeva Systems
Veeva Systems is a pioneering cloud-based software company that enhances efficiency across clinical trials and drug development. By facilitating better collaboration among researchers, Veeva helps to expedite product availability in the pharmaceutical sector while being a publicly traded benefit corporation that prioritizes both financial and social impact. The company has exhibited notable growth since joining Stewart Investors' holdings in November 2019.
The Broader Impact of These Companies
Wood notes that health is shaped by a combination of different factors, including infrastructure, accessibility, and preventive measures. The companies highlighted have not only shown resilience during challenging times, but they also play a significant role in promoting global health.
The analysis of these companies originates from a larger pool of around 200 holdings considered by Stewart Investors within their emerging markets and global equity strategies.
Frequently Asked Questions
What companies are advancing health beyond pharmaceuticals?
The identified companies include Brown & Brown, Cintas Corporation, Haleon, Linde, Raia Drogasil, and Veeva Systems.
Why are these companies significant investments?
They are focused on enhancing health access, sustainability, and preventive care, thus improving overall societal health while generating attractive returns.
What is Stewart Investors' investment approach?
Stewart Investors employs a bottom-up investment strategy that seeks quality holdings capable of providing long-term profitability.
How do these companies ensure sustainability?
These companies implement various sustainable practices, from circular economy initiatives to promoting public health through accessible products and services.
What is Stewart Investors' investment portfolio worth?
As of recent reporting, Stewart Investors manages approximately US$16.5 billion in assets globally.
