...Multi-Factor Rating Approach: Fitch Ratings views the R&D pipeline and leverage as the main differentiating business and financial risk factors for European Big Pharma-and Biotech issuers, attaching highest importance to these two sub-factors in the Fitch Rating Navigator Framework for Pharmaceuticals. The R&D pipeline captures the need for innovation and the importance of R&D productivity in the pharma industry to develop a robust business risk profile, while leverage reflects on the issuer's capital allocation, where we have recently seen significant corporate activity to support evolving business models, which have been mostly debt funded, in addition to traditionally high shareholder returns. Sector Outlook Remains Stable: Fitch views the outlook on the European pharmaceutical industry as stable, supported by its non-cyclical nature and favourable demand characteristics, with stable volume growth driven by a growing and ageing population, longer life expectancy and increased access...
