Tareno Health­care Funds monthly report April 2026

Market review

In April, the health­care sector posted a return of ‑0.2%, driven by the reporting season and (geo)political develo­p­ments. Over 40% of compa­nies have already published Q1 figures, with 72% beating sales expec­ta­tions and 83% beating earnings expec­ta­tions – with higher surprises than in Q4. The Middle East was parti­cu­larly relevant for MedTech and Life Sciences Tools & Services, with limited direct exposure overall. At the same time, risks such as higher freight costs, infla­tion and weaker demand were empha­sized. M&A activity remained robust, led by Sun Pharma (USD 11.8 bn Organon), Eli Lilly (USD 9.3 bn incl. Kelonia and Ajax) and Gilead (USD 5 bn Tubulis). Other signi­fi­cant deals included Neurocrine/Soleno, Chiesi/KalVista, the take-private of Avanos, the sale of the Micro­bio­logy business by Thermo Fisher and Teva’s acqui­si­tion of Emalex.

Provi­ders & Services (+14.4%) was driven by managed care compa­nies. A key catalyst was the CMS announce­ment of the final Medicare Advan­tage rates for CY2027, which were well above expec­ta­tions and triggered a strong rally. The perfor­mance was supported by solid quarterly figures with favorable medical loss ratios and improved pricing dynamics. Hospi­tals, on the other hand, remained under pressure as a weaker flu season weighed on volume develo­p­ment.

Large-cap Pharma (-1.2%) showed a mixed perfor­mance, driven by results and momentum in the obesity market. Eli Lilly initi­ally under­per­formed due to discus­sions around the oral GLP‑1 drug Foundayo, which was approved on April 1. FDA requi­re­ments and early, subdued prescrip­tion data led to uncer­tainty regar­ding launch, adherence and market share. However, after strong Q1 figures on April 30, driven by Mounjaro/Zepbound and a positive outlook for Foundayo, the share price recovered signi­fi­cantly. Novo Nordisk was the best performing pharma stock in April with +20%, supported by the successful launch of oral Wegovy and incre­a­sing confi­dence in the market launch.

Life Sciences Tools & Services (-1.9%) were under pressure at the begin­ning of the month follo­wing a proposed 2027 NIH budget with poten­tial cuts and increased uncer­tainty in research funding. Diagno­stics also suffered from CMS (“waste and fraud”) concerns, while AI announce­ments from OpenAI, Amazon and Anthro­pic’s acqui­si­tion of Coeffi­cient Bio weighed on the sector as investors reassessed the long-term impact on the tools ecosy­stem.

Later in the month, Danaher, Thermo Fisher and Sarto­rius reported results in line with expec­ta­tions, supported by solid biopharma demand, strong consu­ma­bles and impro­ving trends in China. All three confirmed their growth outlook, with guidance now appearing reali­stic rather than conser­va­tive, limiting upside poten­tial. A weaker than expected flu season also weighed on the volume trend for diagno­stic tests.

Biotech (-2.6%) saw SMID caps outper­form large caps, supported by increased M&A specu­la­tion. Positive clinical data, parti­cu­larly breakth­roughs in pancreatic cancer (Revolu­tion Medicines +48%), led to renewed investor interest. Regula­tory and political topics were also in focus: the nomina­tion of Erica Schwartz as CDC director was well received, while psyche­de­lics stocks rose follo­wing a US execu­tive order to promote appro­priate thera­pies for mental illness. In addition, IPO activity was at its highest level for over five years at around USD 1.5 bn. Kailera set a record Nasdaq Health­care IPO with USD 626m, followed by Henmab, Avalyn and Seaport.

MedTech (-4.6%) was weighed down by large caps. Bellwe­ther stocks such as Boston Scien­tific and Intui­tive delivered solid results and gained on the reporting day, but gave up the gains over the course of the month. Abbott and Stryker showed mixed results. Imaging provi­ders fell after GE Health­care reported infla­tio­nary pressures (oil, memory chips, freight). Dentals were a bright spot in April.

Outlook

Volati­lity is likely to persist as political develo­p­ments, geopo­li­tical risks and AI-driven struc­tural changes continue to shape market senti­ment. However, the sector’s funda­men­tals remain intact, supported by robust M&A activity, continued innova­tion and solid struc­tural demand drivers for the medium to long-term growth outlook.

Review Tareno Sustainable Health­care Fund

We did not add any new positions or close any existing ones last month. In April, the fund achieved a return of 0.7%, while the bench­mark index lost 0.2%. The biggest positive attri­bu­tion drivers compared to the index were:

• Centene (+67 bps): Solid Q1 figures and overall managed care strength
• United­He­alth (+34 bps): Solid Q1 numbers and overall managed care strength
• Novo Nordisk (+30 bps): Solid momentum in oral Wegovy and AI partner­ship with OpenAI; additional share price gains after positive obesity market outlook from Lilly

The biggest negative attri­bu­tion drivers compared to the index were:

• Elevance (-25 bp): not invested
• CVS (-21 bp): not invested
• Merck & Co (-18 bp): Share price decline after publi­ca­tion of abstract titles (inclu­ding compe­ti­tive programs in the PD‑1/L1xVEGF Bispe­cific area) ahead of ASCO 2026. Subse­quent recovery after strong Q1 figures.

Review Tareno Impact Health­care Fund

Last month, we built up positions in Bavarian Nordic and Ypsodmed and sold Inspire, Hologic and Penumbra. In March, the Tareno Impact Health­care Fund generated a return of 5.4%. The biggest positive contri­bu­tions were:

• Centene (+ 180 bps): Solid Q1 numbers and overall managed care strength
• Humana (+120 bps): Solid Q1 numbers and overall managed care strength
• Axsome (+75 bps): FDA approval of AUVELITY for the treat­ment of agita­tion in Alzhei­mer’s dementia

The biggest negative contri­bu­tions were:

• BioMe­rieux (-63 bp): Missed expec­ta­tions and lowered 2026 guidance, weighed down by a mild flu season and a challen­ging geopo­li­tical and macro environ­ment
• Abbott (-36 bp): Mixed Q1 results and downgrade by a broker.
• Gilead (- 22 bp): Share price decline due to incre­a­sing compe­ti­tive concerns in the in vivo CAR‑T space follo­wing the Kelonia acqui­si­tion by Eli Lilly.