00:00 Speaker a
Today, Modern shares that go upside down, the FDA has provided Company Limited for a lower dose Covid-19 vaccine. The fact that pressure on the pharmaceutical industry is facing broken relationships with HHS leader RFK Jr., as well as tariff policy, risks more broadly. Other guests identify two main areas of opportunities for investors in the health care space. We are now joined by Jason Cretezer, Manager of Morgan Stanley Investment Management Portfolio. Jason, it’s great to talk to you this morning. Obviously, as we mentioned, the pharmaceutical industry has many winds. What gives you some optimism about how Pharma’s shares can now do the second half of the year?
00:52 Jason Cretezer
Of course. Well, we try to focus on areas where the administration has less attention. UH, medical devices and animal health are two areas that actually avoid much attention, depending on the perspective of administration. Hm, you know, if you look at health care, it was very unstable this year. UH, at the bottom of the leading table, taking into account S&P performance from the S&P sector perspective. So, trying to find areas where there are opportunities. On the side of the medical device we really like, intuitive surgical. It is a robotic surgery company. UH, it is a very cool company that it is very innovative, given its UH, new products that help surgeons are essentially improving, better. UH, addressed to the UH market, Da Vinci Five, which is their new new robot, has been performed by about eight million global treatments. UH, and it is in neurology, general surgery, gynecology. The growth of the company’s procedures is 13 to 16%. This is volume growth. We really do not see this kind of UH, in health care, so it was a terrible long -term overalls. Hm, you know, in other areas, we, we really like animal health. Hm, zoets are the leader of the UH, the leader of both companions, which is a pet and livestock space. Hm, Zoets have grown above the market for the last 10 years. And it was um, the essence of this thesis, was actually their innovation. They are very large, pain, fleas and ticks, as well as in dermatology. The pain is recently. UH, the US is under the supervision of 27 million dogs, US veterinarians who have UM, osteoarthritis and their pain medicine are UH, really just scratched the surface. They are only assigned to UH, selling that space for about a million dogs.
04:39 Speaker a
Yes.
04:40 Jason Cretezer
There were many questions in UH, on the market about, UH, well, drug pricing uh, human health. Hm, remember, there is no Medicare. There is no Doggy Medicare, so from this perspective, you know we like animal health.
05:04 Speaker a
Yes, I thought it was a really interesting foundation, Jason. Is Animal Health currently investing a way to be a vashton protection from your health portfolio?
05:23 Jason Cretezer
We think so. We think so. I mean, you know for sure if you look, it is a cash wage market. As I said, not Medicare. Hm, as we all know, people love their pets and, of course, will want to spend a lot on their pets out of pocket. So, though no, the UH, the sector is completely protected from economic, uncertainty, no, the pet market is the one that you know is very exciting.
06:08 Speaker a
And my guest owner Jay Woods has a question for you, Jason.
06:14 Jay Woods
Hey Jason, II, I think you are something big there. ETF Pause, Pawz is all those UH, a stock conglomerate. And you mentioned Zoeti, you may have already answered most of the question, but why is it standing out? UH, because there are other options in the pet insurance sector. UH, was it a side of the animal? What did you most stretch out about the “zoetis”?
06:50 Jason Cretezer
Well, if you think of UH, Zoeti, Zoet was 12 years ago from Pfizer. And their roots are actually innovation in Animal Health, not in the animal area. They do it, they are the animal leader. Hm, so their innovation engine is actually attractive. They go out with new drugs for pets that have, are great results. And it really encourages their growth and you know that they are the above market grower, UM, so he made it attractive to us.
07:55 Speaker a
Jason, I really appreciate my time this morning. Thank you very much.
08:00 Jason Cretezer
Thank you.