PHARMACEUTICALS

Coming through the Covid-19 storm

M

LOW RISK for entreprises

  • Fragmentation

  • Internationalization

  • Capital Intensity

  • Profitability

  • Fragmentation

  • Internationalization

  • Capital Intensity

  • Profitability

  • Structural rise in demand boosted by growing middle classes in emerging markets and aging population as a whole
  • Resilience of drug spending irrespective of economic cycle
  • Rising R&D expenditures still covered by strong cash generation
  • Public health insurance systems putting stronger downward price pressures on not innovative enough medicines
  • Drug pricing issues, especially in the U.S., tarnishing the whole pharmaceutical sector’s reputation
  • Strict healthcare laws and regulations
  • Generic drug makers suffering from average profit margins (much) lower than that of patented drug makers
  • New patent cliff looming ahead

Key players

Country Role Sector risk
China

#1 market by revenue

A

Low risk

United States

#2 market by revenue

B

Medium risk

Switzerland

#3 market by revenue

A

Low risk

India

#4 market by revenue

A

Low risk

Germany

#5 market by revenue

A

Low risk

Contact Euler Hermes

Economic Research Team

research@eulerhermes.com

Sector Risk Analyst

Marc LIVINEC

marc.livinec@eulerhermes.com

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