The Palomar Healthcare Technology Index is a modified equal weighted index comprised of companies whose businesses stand to benefit substantially from the burgeoning global demand for advanced technologies in medicine and healthcare. The index is rebalanced each March, June, September and December. The index divisor was initially calculated to yield a benchmark value of 1000.00 at the close of trading December 31, 1998.
Hossein Pourmand, co-founder and principal architect of the Palomar Healthcare Technology Index, said, "We are witnessing the positive effects of technology and specifically information technology on the healthcare sector and the digitization of healthcare is still in its early stages. Hospitals and healthcare providers are realizing the tangible benefits of advanced technology in medical instruments and appliances as well as the efficiency gains of information technologies in the delivery of healthcare services. Given the investment needed to fully overhaul the global healthcare sector to benefit from advanced technologies, we believe the Palomar Healthcare Technology Index is the right product at the right time. We are delighted to partner with Amex in launching this product."
The index was created by Palomar Medical Systems Inc. a Los-Angeles based healthcare advisory and research firm assisting healthcare providers with the transition to the digital age. Discussions are underway to license the Palomar Healthcare Technology Index for financial products, including an exchange traded fund which tracks the index.
Elias Azrak, co-founder of Palomar Healthcare Technology Index, said "The Palomar Healthcare Technology Index is a first-of-its-kind index developed to capture in an aggregate manner the potential associated with the substantial increase integration of technology and healthcare. We believe that this value will inevitably be unlocked as the global healthcare system offer more advanced treatments to various ailments and becomes more automated in the delivery of services."
Scott Ebner, director of New Product Development at the Amex, said, "The Palomar Healthcare Technology Index goes beyond the typical construction of an industry or sector index to target companies in three distinct categories of the healthcare sector in a unified manner. We are happy to be able to work with expert partners to introduce innovative indices like the Palomar Healthcare Technology Index that are designed to work well as exchange-listed products."
