...Drug Pricing in the Spotlight: Attention on pricing in the pharma industry has intensified as the market continues to innovate, although Fitch Ratings expects no near-term shift in industry wide profitability. However, the focus on delivering value to patients and health-care systems will accelerate the industry-wide review of pricing models in favour of performance-based pay. Industry Top-Line Resilient: Fitch expects real innovation and therapy advancement will continue to attract premium pricing, supported by performance-based pricing models. We consider this important to offer sufficient incentives for innovation and R&D. However, performance-based pricing models require pharmaceutical companies to not only demonstrate clinical efficacy, but also wider value for the system and in many cases against competing agents. Near-Term Rating Outlook Remains Negative: Fitch's rating outlook for the global pharma sector remains negative for 2016, reflecting companies' willingness to stretch financial...
