How investors can navigate the healthcare sector

Watch on YouTube ↗  |  July 27, 2026 at 17:23  |  3:49  |  CNBC
Speakers
Jason Calacanis — Angel Investor / Founder, LAUNCH
Joe
Panelist 2 — Head of Research, Galaxy Digital
Host — Host

Summary

A CNBC panel debates how to navigate the healthcare sector after a 14.5% rally over three months. Key catalysts discussed include biotech M&A driven by patent cliffs, private companies like Thyme Care and Digital Diagnostics riding value-based care and AI, Eli Lilly's GLP-1 success, and a broad call to allocate to large-cap healthcare stocks.

  • Healthcare is up 14.5% in the last three months and breaking downtrends.
  • Jason argues patent cliffs are fueling biotech M&A and pushing IBB/XBI higher.
  • Joe highlights private company Thyme Care, growing 100% a year in cancer care navigation, as a future IPO winner.
  • A panelist recommends allocating to large-cap healthcare names like Bristol-Myers, UnitedHealth, Merck.
  • Eli Lilly is called out for its GLP-1 drug story.
  • Another panelist shares board experience at AI diagnostics firm Digital Diagnostics, showing 90% accuracy vs 33% conventional.
  • A broader AI healthcare opportunity is noted but not tied to specific public companies.
Ideas
Jason Calacanis Angel Investor / Founder, LAUNCH 0:39
Patent cliffs drive biotech M&A outperformance.
Biotech is benefiting from a wave of M&A driven by big pharma facing major patent cliffs (e.g. AbbVie's Humira losing exclusivity). Large pharma companies need to acquire innovative biotech firms to replace lost revenue streams, and the acquirers' stocks have done well, encouraging more deals. The biotech complex (represented by IBB and XBI) has been performing strongly as this catalyst plays out.
XBI IBB HIGH
Joe 1:20
Value-based care will make Thyme Care IPO huge.
Thyme Care, a private company that handles outsourced cancer care navigation, is growing 100% a year and is highly profitable. It adds meaningfully to the bottom line of major payers like Humana, CVS, UnitedHealth, and Aetna. The shift is driven by value-based care mandates for Medicare and Medicaid by 2030. When Thyme Care and similar companies go public, they will be huge winners.
Thyme Care MED
2:25
Allocate to healthcare large caps, they're working.
Investors should be allocating to healthcare because there are many idiosyncratic stories driving the sector. Large-cap names like Bristol-Myers (BMY), UnitedHealth (UNH), and Merck (MRK) are all working well and represent a way to gain exposure to the sector's leadership.
UNH BMY MRK LOW
2:40
GLP-1 drugs power Eli Lilly outperformance.
Eli Lilly is a standout within healthcare, driven by the GLP-1 drug story. The stock has worked really well alongside biotech in general, with the GLP-1 theme providing a powerful catalyst.
LLY MED
Panelist 2 Head of Research, Galaxy Digital 3:07
AI diagnostics superior accuracy, huge future IPO.
Digital Diagnostics has developed the first AI software that diagnoses diabetic retinopathy, the leading cause of blindness affecting 440 million globally, with over 90% accuracy versus 33% for conventional exams. AI-driven diagnostics are picking up steam and this company could become a major winner when it eventually goes public.
Digital Diagnostics LOW
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This CNBC video, published July 27, 2026, features Jason Calacanis, Joe, Panelist 2 discussing XBI, IBB, Thyme Care, UNH, BMY, MRK, LLY, Digital Diagnostics. 5 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Jason Calacanis, Joe, Panelist 2  · Tickers: XBI, IBB, Thyme Care, UNH, BMY, MRK, LLY, Digital Diagnostics