How this sector has changed since the 2008 Top Companies edition. Last September, Manto Tshabalala-Msimang lost her job as health minister, making way for another ANC veteran Barbara Hogan who turned out to be an energetic player. But she was just a stop-gap minister.

This time last year, stocks in health care were in negative territory partly because of Tshabalala-Msimang's legislative proposals. Her price-setting proposals in the National Health Amendment Bill triggered howls and frowns. Medi-Clinic didn't only dismiss the bill as regulatory interference, incoherent and unconstitutional, but also threatened a lawsuit.

But before long, the parliamentary health portfolio committee on health threw the bill out.

Fast forward to June 2009. No-one is talking about that legislation. Is it dead in the water? No. "Maybe the new dispensation is working on it behind the scenes," says Credit Suisse health analyst Mark Wadley. It is hoped that when it returns, it won't give medical schemes an unfair advantage over hospitals and doctors.

Rather, the legislation should be structured in a manner that strikes a balance between the needs of the populace and the market and not become what JP Morgan analyst Alex Comer once referred to as "potentially damaging legislation".

It's going to be a tough balancing act for new health minister Aaron Motsoaledi, who's already managed to get the support of the private sector, which felt alienated under Tshabalala-Msimang. Medi-Clinic, Netcare and Aspen are among the players pledging co-operation.

Aspen head of strategic trade Stavros Nicolau speaks of Motsoaledi's "fair track record and good technical understanding" and says the retention of Molefi Sefularo as deputy ensures continuity from the Hogan era. "What's important for us as business is certainty and we're beginning to see that."

Netcare has vaulted 20% for the year to change hands at between R10 and R10,50/share at the time of going to print. This share is trading at a 46% premium to the financial & industrial index on a 12-month forward p:e basis, notes Nedbank. "(This) is higher than the 4% average premium and 15% premium implied by our valuation," the bank says, explaining why it downgraded the share to a "sell". I-Net rates Netcare as a "hold" while the FM says Netcare is worth no less than a "buy". However, at a p:e ratio of 15, Netcare isn't exactly cheap, but quality comes at a price.

Still, that doesn't compare to Medi-Clinic's high p:e of 20. For that reason, Medi-Clinic seems overpriced right, especially for short-term investors. However, Nedbank predicts that Medi-Clinic will end the year on a slightly softer note.

On the pharmaceutical front, Aspen hasn't lost its spark. Since the beginning of the year, shares in the generic drugs maker have soared 40% to flirt with R50/share. Net profit has broken above the R1bn mark from R129m in 2000. What Aspen investors may find a little disappointing is the passing of its dividend in 2008.

Aspen's rivals, Cipla Medpro and Adcock Ingram, won't be coming together, after all. Adcock wanted to acquire Cipla for R2,1bn, but the latter couldn't stand the idea.

On the AltX, BioScience has halved in value and is trading at 4c/share. Myriad and Imuniti haven't offered their investors much return on equity.