Healthcare and Logistics in Focus with Amazon, First Hydrogen, Bayer - Where growth is created

Amazon launches telemedicine service for 167 million Prime members in the US

In Germany, employees who wake up feeling unwell have to drag themselves to their GP for a possible sick note. What worked well over the phone during the coronavirus pandemic to relieve the pressure on doctors' surgeries was repealed by German lawmakers on April 1, 2023. While the bureaucracy monster is wreaking havoc in Germany, Amazon has now established a pragmatic, time-saving solution.

As of this week, Prime members in the US have been able to use Amazon's in-house telemedicine service. This means that around 167 million Prime subscribers in the US can use the 24-hour service at any time.

For investors, whose main job is to think into the future to discover the greatest possible returns, this news has enormous potential. With 167 million potential diagnoses, Amazon can develop data pools that other analytics companies or the National Health Authority CDC in the US can only dream of. With in-house technical expertise, Amazon data engineers can use predictive analytics to calculate heat maps of infections, waves of disease, etc. With appropriate modeling software, other sources of spread can also be predicted and contained in good time.

Employers benefit from the time saved that employees would otherwise need to drive across town to the doctor, including a stay in the waiting room, to finally obtain a sick note. Unlike in European countries, health benefit contracts in the US are often linked to the employer: more available working time, more potential productivity.

According to Statista, turnover in the US digital health market is expected to reach USD 44.45 billion. Revenue is estimated to grow at a CAGR of 8.54% from 2023 to 2028, resulting in a projected market volume of USD 66.96 billion by 2028. The average return per user (ARPU) is expected to amount to USD 137,700.

If Amazon succeeds in cracking this lucrative vertical, this means further growth opportunities for the share. The share is currently trading at EUR 132.50.

First Hydrogen - Hydrogen drive for transportation companies

Amazon is represented in eight European countries. The combined number of sellers in these countries accounts for 24% of Amazon sellers worldwide. The German and UK markets are not only the oldest European Amazon marketplaces but also the most lucrative in terms of net sales. Amazon Germany topped the ranking of the most profitable marketplaces in Europe in 2021 with EUR 31.6 billion in net sales and was followed by Amazon UK in 2nd place with EUR 27.9 billion. Overall, net sales increased by 13% to USD 134.1 billion in Q3/2023, compared to USD 119 billion in Q3/2022. Whether Amazon parcels, medicines or groceries, all these goods are transported to their destination in vans every day. Amazon ships approximately 1.6 million packages per day. That equates to more than 66,000 orders per hour and 18.5 orders per second.

It is precisely here where the Company First Hydrogen comes into play. Based in Vancouver and London, the First Hydrogen focuses on zero-emission transportation and the production and distribution of green hydrogen. In collaboration with AVL Powertrain and Ballard Power Systems Inc., First Hydrogen has designed and built light commercial vehicles with hydrogen fuel cells ("FCEV"). These vehicles have a range of more than 630 km on a single charge and are currently undergoing practical trials in the UK.

Visitors from the industry could see for themselves at the Horiba Mira Technology Park at the end of October that the FCEV vehicle developed by First Hydrogen is a commercially viable solution.

In addition, First Hydrogen plans to build a 35 MW facility for green hydrogen production and a factory for vehicle assembly in Shawinigan, Quebec. For investors who want to be part of an exciting candidate in the growing logistics market from the beginning, First Hydrogen is worth analyzing. After all, hydrogen propulsion has already arrived in the US, at least on the rails.

Bayer quarterly figures sobering, next measure: Streamlining management

Bayer CEO Bill Anderson spoke candidly when presenting the quarterly figures for Q3/2023: "We are not satisfied with our performance this year." The American, who took over from Werner Baumann in the spring, still has his hands full. Firstly, Anderson plans to streamline Bayer AG's bloated management structure. He wants to shift most of the decision-making powers from the managers to the employees who actually carry out the tasks. Twelve layers of management between him and the Company's customers are "simply too much".

A possible split of the three Group divisions: Pharmaceuticals, Crop Science and Consumer Health is still conceivable. Whether it will be the problem child Crop Science together with Monsanto or Consumer Health, Anderson has not yet said anything about this. Bayer AG's total sales amounted to USD 11.25 billion this time but fell short of analyst estimates. Crop Science sales remained stable, while pharmaceutical orders in China declined. However, new products such as Nubeqa™ (for prostate cancer) and Kerendia™ (for the treatment of chronic kidney disease in adults with type 2 diabetes) recorded growth. Investors are somewhat critical of the fact that Anderson is currently turning over every stone in the Group. The share has lost 20% of its value in the last 12 months and currently stands at EUR 41.98.

Amazon has introduced a telemedicine service for 167 million Prime members in the US, creating a potential data source for health data and its analysis. This offers enormous potential for predictive analytics and is a significant step towards conquering the healthcare market. First Hydrogen focuses on zero-emission transportation with hydrogen fuel cells. According to Fortune Business Insights, the global electric vehicle market was estimated at USD 384.65 billion in 2022 and is expected to grow from USD 500.48 billion in 2023 to USD 1,579.10 billion by 2030. The Company is also planning a green hydrogen production plant, which will further solidify the business. Bayer posted disappointing quarterly figures and is planning a management streamlining. A possible split-up of the business units is under discussion. Investors are taking a critical view of the business, with the result that the shares have lost 20% in the last 12 months. There are signs of growth at Amazon in the medical division, followed by the hydrogen-powered transporter from First Hydrogen. CEO Anderson, on the other hand, still has some tidying up to do at Bayer and some pruning here and there before new growth can emerge.