...In April 2023, the European Commission announced the first overhaul of EU pharmaceutical legislation in 20 years. The plan aims to improve market access to innovative medicine and proposes cutting the period of market exclusivity by two years. This means the competition of generic drugs could kick in after eight years from 10 years. The industry could benefit from an extended exclusivity period if an innovative medicine is launched in the EU, which is currently not usual practice. Big pharma continued to post strong results in the first quarter. Big pharma companies also launched very positive phase III read-outs, paving the way for ongoing solid growth. Market conditions remain challenging for health care services. Health care companies have the lowest margins and are most exposed to high labor costs. Although demand has improved post-pandemic, labor costs will likely remain high pressuring EBITDA, cash flows, and ratings in the sector. Also, staff shortages could weigh on activity volumes....
