...2014 Top-Line Performance Ahead of Expectations Reported 2014 sales growth for the European rated Pharma universe at constant exchange rates was ahead of expectations driven by lower than anticipated generic competition and international diversification. AstraZeneca's sales growth was ahead of expectations due to generic competition for Nexium being delayed. Roche, Bayer, Novartis, and Sanofi's revenues were in line, underpinned by good treatment diversification and exposure to emerging markets. GSK was the only one to see a fall in revenue - by 18% - as its respiratory drug Advair faced increasing competition and loss of market share. Industry profitability remained under pressure with median EBITDAR margin declining to 32.7% (33.9%), and FCF declining to 4.3% (7.3%) as a result of the lower profitability, combined with shareholder returns and increased M&A activity. What to Watch M&A and Industry Consolidation: M&A remains in vogue driven by R&D productivity, and search for scale, particularly...
