The healthcare sector is one of the most resilient and innovative sectors in the economy. It encompasses a wide range of industries, from biotechnology and pharmaceuticals to medical devices and health insurance. The sector is constantly evolving and adapting to the changing needs and demands of the population, especially in the face of the COVID-19 pandemic.

The healthcare sector is also a fertile ground for investors who are looking for long-term growth and stability. According to a report by Grand View Research, the global healthcare market size was valued at $8.45 trillion in 2018 and is expected to grow at a compound annual growth rate (CAGR) of 8.9% from 2019 to 2026¹. The report cites the rising prevalence of chronic diseases, aging population, technological advancements, and increasing healthcare spending as the key drivers of the market growth.

However, not all healthcare stocks are created equal. Some are more established and mature, while others are more risky and speculative. Some are more focused on specific niches, while others are more diversified and global. Some are more profitable and stable, while others are more volatile and cyclical.

In this article, we will focus on three emerging healthcare stocks that have huge growth potential in the coming years. These are companies that are relatively new and under-the-radar, but have strong competitive advantages, innovative products or services, and attractive growth prospects. These are the stocks that could be the next big winners in the healthcare sector.

## 1. Elevance Health Inc. (ELV)

Elevance Health Inc. is a digital health company that provides personalized and preventive healthcare solutions to consumers and employers. The company leverages artificial intelligence, big data, and behavioral science to create customized health plans and interventions for each individual, based on their health risks, preferences, and goals.

Elevance Health's flagship product is the Elevance App, a mobile application that connects users with a network of health coaches, doctors, nutritionists, and fitness experts. The app also tracks and analyzes the user's health data, such as biometrics, activity, sleep, mood, and nutrition, and provides personalized feedback and recommendations. The app aims to help users improve their health outcomes, lower their healthcare costs, and enhance their well-being.

Elevance Health also offers a suite of solutions for employers, such as Elevance Wellness, Elevance Care, and Elevance Rewards. These solutions help employers improve the health and productivity of their workforce, reduce absenteeism and turnover, and lower their healthcare expenses.

Elevance Health was founded in 2019 and is headquartered in San Francisco, California. The company has raised $110.6 million in funding from investors such as Sequoia Capital, Andreessen Horowitz, and Founders Fund². The company has also partnered with leading healthcare organizations, such as Cigna, Humana, and Kaiser Permanente, to expand its reach and impact.

Elevance Health is one of the most promising and disruptive players in the digital health space, which is expected to grow at a CAGR of 28.5% from 2020 to 2026, reaching $639.4 billion by 2026³. The company has a unique value proposition that combines cutting-edge technology, human touch, and behavioral science to deliver personalized and preventive healthcare at scale. The company has a large and growing addressable market, as more consumers and employers are looking for ways to improve their health and wellness, especially in the wake of the pandemic. The company also has a strong competitive edge, as it has a first-mover advantage, a loyal and engaged user base, and a network of strategic partners and investors.

## 2. Viking Therapeutics Inc. (VKTX)

Viking Therapeutics Inc. is a biopharmaceutical company that develops novel therapies for metabolic and endocrine disorders. The company's pipeline consists of five drug candidates that target various indications, such as non-alcoholic steatohepatitis (NASH), obesity, diabetes, hypercholesterolemia, and hip fracture.

Viking Therapeutics' lead drug candidate is VK2809, a small molecule that selectively activates the thyroid beta receptor, a key regulator of lipid metabolism. VK2809 is currently in phase 2b clinical trial for the treatment of NASH, a chronic liver disease that affects millions of people worldwide and has no approved therapies. VK2809 has demonstrated impressive results in phase 2a trial, showing significant reductions in liver fat content, serum cholesterol, and triglycerides, as well as a favorable safety profile⁴.

Viking Therapeutics' other drug candidates include VK0214, a thyroid beta receptor agonist for the treatment of X-linked adrenoleukodystrophy (X-ALD), a rare and fatal genetic disorder that affects the nervous system and adrenal glands; VK5211, a selective androgen receptor modulator for the treatment of patients recovering from hip fracture; VK0612, a first-in-class inhibitor of fructose-1,6-bisphosphatase for the treatment of type 2 diabetes; and VK0214, a thyroid beta receptor agonist for the treatment of hypercholesterolemia.

Viking Therapeutics was founded in 2012 and is headquartered in San Diego, California. The company has raised $168.5 million in funding from investors such as RA Capital Management, OrbiMed Advisors, and Viking Global Investors⁵. The company has also licensed some of its drug candidates from Ligand Pharmaceuticals, a leading drug discovery and development company.

Viking Therapeutics is one of the most exciting and innovative players in the biopharmaceutical space, which is expected to grow at a CAGR of 6.1% from 2020 to 2027, reaching $2.27 trillion by 2027⁶. The company has a diversified and differentiated pipeline of drug candidates that target large and unmet medical needs, such as NASH, obesity, diabetes, and hypercholesterolemia. The company has a strong scientific and clinical expertise, as well as a strategic partnership with Ligand Pharmaceuticals, which provides access to a rich library of compounds and technologies. The company also has a lean and capital-efficient business model, as it outsources most of its research and development activities to third-party vendors.

## 3. Thermo Fisher Scientific Inc. (TMO)

Thermo Fisher Scientific Inc. is a global leader in the life sciences industry, providing products and services that enable scientific research, discovery, and innovation. The company operates through four segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Services.

The Life Sciences Solutions segment offers a range of products and services for biological research, such as reagents, instruments, consumables, software, and services. The segment's products include gene expression, sequencing, and synthesis technologies, as well as cell culture, protein analysis, and biosafety solutions.

The Analytical Instruments segment provides a range of products and services for chemical, environmental, and industrial analysis, such as mass spectrometry, chromatography, spectroscopy, and elemental analysis. The segment's products include liquid chromatography, gas chromatography, mass spectrometry, and molecular spectroscopy systems, as well as laboratory information management systems and software.

The Specialty Diagnostics segment offers a range of products and services for clinical and diagnostic testing, such as immunoassays, microbiology, molecular diagnostics, and point-of-care testing. The segment's products include clinical chemistry, immunoassay, microbiology, and molecular diagnostics systems, as well as rapid tests and blood typing products.

The Laboratory Products and Services segment provides a range of products and services for laboratory operations, such as laboratory equipment, consumables, chemicals, and services. The segment's products include centrifuges, incubators, freezers, pipettes, glassware, and plasticware, as well as laboratory chemicals, reagents, and media.

Thermo Fisher Scientific was founded in 2006 and is headquartered in Waltham, Massachusetts. The company has grown through a series of acquisitions and mergers, such as Life Technologies, FEI Company, Patheon, and QIAGEN. The company has also invested heavily in research and development, as well as in expanding its global presence and capabilities.

Thermo Fisher Scientific is one of the most dominant and diversified players in the life sciences industry, which is expected to grow at a CAGR of 7.4% from 2020 to 2027, reaching $2.44 trillion by 2027⁷. The company has a comprehensive and integrated portfolio of products and services that cater to a wide range of customers, such as academic and government institutions, pharmaceutical and biotechnology companies, hospitals and clinical laboratories, and industrial and environmental customers. The company has a strong competitive advantage, as it has a leading market position, a loyal and diversified customer base, a global scale and reach, and a robust innovation pipeline. The company has also benefited from the COVID-19 pandemic, as it has played a vital role in providing testing, research, and vaccine solutions.

# Conclusion

The healthcare sector is one of the most attractive and lucrative sectors for investors who are looking for long-term growth and stability. The sector is driven by the rising demand for healthcare services and products, as well as by the constant innovation and advancement in the field. However, not all healthcare stocks are the same. Some are more promising and profitable than others. In this article, we have highlighted three emerging healthcare stocks that have huge growth potential in the coming years. These are Elevance Health Inc., Viking Therapeutics Inc., and Thermo Fisher Scientific Inc. These are companies that are relatively new and under-the-radar, but have strong competitive advantages, innovative products or services, and attractive growth prospects.