Global Pharma and Biotech – What Investors Want to Know

...Sector Fundam entals Support Ratings: Fitch Ratings view s underlying secular sector trends for pharma issuers as supportive, characterised by the industry's non-cyclical nature and favourable demand characteristics, w ith stable volume grow th driven by an expanding and ageing population, longer life expectancy, and increased access to healthcare. Satisfactory innovation, advancing research pipelines and manageable patent-protection profiles, also support the sector's outlook. Drug Pricing Focus Offers Disruption Potential: Pricing pressure, now established across the industry as payers have to manage rising healthcare costs, is challenging positive underlying volume grow th that supports ratings. This topic is attracting political and regulatory attention, particularly in the US, and increasingly is testing the established drug delivery channels. As a result, w e anticipate some challenges could build up for business models in the drug delivery chain, w hich could be exacerbated by nascent...

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