The race to find a vaccine for Covid-19
LOW RISK for entreprises
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Fragmentation
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Internationalization
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Capital Intensity
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Profitability
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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 |
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