Fitch Ratings 2019 Outlook: Global Big Pharma & Biotech

...Fitch Ratings' Sector Outlook: Stable The Fitch sector outlook for the global pharmaceutical & biotech industry in 2019 is stable, supported by the industry's non-cyclical nature and favourable demand characteristics, with stable volume growth driven by a growing and ageing population, longer life expectancy and increased access to healthcare. Satisfactory innovation, advancing product pipelines and manageable patent protection profiles also support the sector's outlook. Rating Trajectory: Down Rating headroom for select issuers remains low due to increasing price pressure across the sector and incentives for issuers to increase leverage to fund acquisitions and generous shareholder returns The focus on drug pricing is now firmly established across the industry as payers have to manage rising healthcare costs. We expect this factor, as well as the rise of biosimilars and greater penetration of generics to affect industry growth and profitability. Four of 16 Fitch-rated entities in the sector...

Outlook