PHARMACEUTICALS

The race to find a vaccine for Covid-19

L

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
  • High level of R&D expenditures (still) well covered by strong cash generation
  • Strong public support for improving people’s healthcare needs
  • State pressures on ‘reshoring’ drug production inside Western countries that may bring on unplanned supply-chain disruptions in the sector going forward
  • Drug pricing issues, notably for a foreseeable Covid-19 vaccine, weighing on the pharmaceutical sector’s reputation
  • Strict healthcare laws and regulations
  • Generic drug makers suffering from average profit margin much lower than that of patented drugs’

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