Tareno Health­care Funds: Monthly report February 2026

Market overview

M&A activity remained robust, with the largest biotech and medtech deals so far this year. Gilead Sciences acquired Arcellx for USD 7.8 billion. In the MedTech sector, Danaher agreed to pay USD 9.9 billion for pulse oximeter manufac­turer Masimo.

The reporting season is largely over. The Q4-2025 results showed a mixed picture. More than two thirds of compa­nies exceeded EPS expec­ta­tions, albeit with a smaller positive devia­tion than in the previous year. The sales trend was somewhat stronger: a higher propor­tion of compa­nies exceeded sales estimates and the average positive devia­tion was also slightly higher year-on-year.

Pharma again led perfor­mance in February, under­li­ning its defen­sive profile and relative insula­tion from macroe­co­nomic (and AI-related) volati­lity. Obesity remained the dominant theme. Novo Nordisk’s Cagri­Sema failed to demon­strate non-inferio­rity to the high-dose version of Eli Lilly’s Zepbound. This calls combi­na­tion thera­pies into question and further streng­thens Lilly’s positio­ning in the GLP‑1 market. The data for Pfizer/Metsera’s lead obesity candi­date was mixed: Although placebo-adjusted weight loss was higher than that of semaglutide, it was lower than that of tirze­pa­tide. Compe­ti­tive fears increased after Hims & Hers attempted to launch a compounded semaglutide pill, trigge­ring a swift response from the FDA. Fears around copycat products meanwhile caused Novo Nordisk and Eli Lilly to lose over USD 95 billion in combined market capita­lization before FDA Commis­sioner Marty Makary announced swift action against illegal copycat drugs.

Provi­ders & Services developed almost in step with Pharma, driven by strength among drug distri­bu­tors, hospi­tals and domestic labora­tory service provi­ders.

Biotech­no­logy ended the month in positive terri­tory, but showed signi­fi­cant volati­lity – reflec­ting its continued sensi­ti­vity to regula­tory headlines and the broader macro environ­ment. On a positive note, several IPOs were launched on the market.

Life Science Tools & Services was the weakest sub-sector. Fears of AI disrup­tion weighed heavily on CROs in parti­cular. A report on AI-driven risks to tradi­tional clinical trial and contract research models weighed on senti­ment. In addition, company-specific develo­p­ments exacer­bated the weakness, inclu­ding the delay in the presen­ta­tion of ICON’s figures, the withdrawal of guidance and the disclo­sure of an investi­ga­tion by the Audit Committee into accoun­ting practices. Regula­tory issues also remained in focus, with the FDA intro­du­cing a new one-study approval pathway to replace the previous two-study requi­re­ment. This initi­ally put pressure on shares, although senti­ment later improved as simpli­fied studies could increase outsour­cing demand in the long term.

Overall, there was a clear disper­sion between the health­care subsec­tors in February. Pharma maintained its defen­sive “safe-haven” charac­te­ri­stics, while Life Science Tools & Services fluctuated sharply due to AI disrup­tion fears – in our view to some extent exces­si­vely.

The chart shows the develo­p­ment of all sectors in the past year:

Source: Tareno AG

Portfolio Tareno Sustainable Health­care Fund

Last month, we built up a position in Johnson & Johnson and did not sell any existing positions. In February, the Tareno Sustainable Health­care Fund generated a return of 0.7%, while the bench­mark index rose by 2.9%.

The biggest positive attri­bu­tion drivers compared to the index were:

• Astra­Ze­neca (+26 bps): Solid Q4 numbers driven by Oncology and a strong 2026 outlook, with a broad Phase III data calendar for 2026–27 under­pin­ning confi­dence in the pipeline. The stock also benefited from mixed Phase 2 asthma data from Upstream Bio and general pharma strength in February.
• Merck & Co(+24 bps): Share price up after solid Q4 results despite mixed (and largely antici­pated) guidance for 2026. Again, general pharma strength supported.
• Novartis (+16 bps): Share price gains after solid Q4 figures, adjusted for one-off US discount effects (Kisqali, Entresto). Cosentyx and Pluvicto were above expec­ta­tions. General pharma strength.

The biggest negative attri­bu­tion drivers in relation to the index were:

• Novo Nordisk (-82 bps): Forecast for decli­ning sales and EBIT in 2026 due to US pricing pressure and incre­a­sing compe­ti­tion in the obesity market. Additional pressure from Hims & Hers Health’s announce­ment of a low-cost semaglutide pill (later banned by the FDA). The REDEFINE‑4 study also failed to meet the primary endpoint of non-inferio­rity to tirze­pa­tide.
• Boston Scien­tific (-40 bps): Q4 above expec­ta­tions, but with diffe­rent sales mix (Electro­phy­sio­logy, Watchman); guidance slightly below expec­ta­tions.
• Johnson & Johnson (-40 bps): The stock rose 10%; we are under­weight the index.

Portfolio Review Tareno Impact Health­care Fund

Last month we built up a position in Guardant Health and sold Exact. In February, the Tareno Impact Health­care Fund generated a return of ‑1.6%.

The biggest positive contri­bu­tions were:

• Aspen Pharmacare (+92 bps): Positive trading update.
• Tandem Diabetes Care (+82 bps): Solid Q4 figures; the switch to a “pay-as-you-go” model was positively received by the market.

• sandoz (+41 bps): Benefited from a broker upgrade and later solid Q4 numbers (revenue in line, EPS above expec­ta­tions) with better guidance for 2026.

The biggest negative contri­bu­tions were:

• Novo Nordisk (-143 bps): Forecast for decli­ning sales and EBIT in 2026 due to US pricing pressure and incre­a­sing compe­ti­tion in the obesity market. Additional pressure from Hims & Hers Health’s announce­ment of a low-cost semaglutide pill (later banned by the FDA). The REDEFINE‑4 study also failed to meet the primary endpoint of non-inferio­rity to tirze­pa­tide.
• Hikma (-53 bps): H2 figures above expec­ta­tions, but 2026 guidance below consensus. Withdrawal of medium-term guidance follo­wing strategic review by new CEO and several manage­ment changes.
• Axsome (-45 bps): Q4 figures commu­ni­cated in advance; share price down due to investor concerns about increased costs due to expan­sion of sales team.