STOCKWATCH: The White Whales
This article was originally published in Scrip
The modern pharmaceutical and biotechnology sectors are young and fast-moving. Their history is still being written. The recent landscape of the pharmaceutical sector has been dominated by a plague of the blockbuster product patent expiries whose cumulative loss in sales has beleaguered the sector for the last three years. There has indeed been a good deal of wailing and gnashing of teeth over the loss of major, highly profitable products. One could ask why so many large high-margin companies employing so many individuals of high intellectual capacity are apparently so enfeebled by events that although they undoubtedly erode the bottom line are nevertheless are so highly predictable and, therefore (one would have thought), highly manageable. But that is for another time. For now, at least according to Sanofi’s recent full-year 2012 financial results (scripintelligence.com, 12 February 2013), the pharmaceutical collective is largely beyond the patent cliff.
You may also be interested in...
The Coronavirus outbreak makes its first dent into pharma's 2020 prospects as AstraZeneca admits possible impact, while could AbbVie's aesthetic plans raise the prospect of another GSK-style spin off?
Expensive acquisitions are in the spotlight during earnings season. The purchases of Kite and Celgene by Gilead and Bristol-Myers Squibb are not turning out to be what was written on the tin.
With Brexit and coronavirus depressing markets over the week, earnings season for life science companies shifted into a higher gear with a number of big companies reporting. In time, the effects of Brexit and 2019-nCoV are likely to subside, but the double-edge sword of biosimilar commercialization continues to rise from the full-year financial reports of Pfizer and Roche.