Scrip is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction
UsernamePublicRestriction

STOCKWATCH: Pharma reptiles find new skins but risk auto-cannibalism

This article was originally published in Scrip

Executive Summary

Plato, among other ancient sages, described the ouroboros, a mythical snake which ate its own tail. The ouroboros represents cyclicality, eternal return and re-creation. For the pharmaceutical industry, its own symbolic snake traditionally depicted wound round a staff or goblet, ouroboros means lifecycle management, maximizing the return on investment over a drug lifetime that extends beyond patent expiry. But now, as illustrated by the earnings numbers released in the week beginning 22 July from Roche, Shire, and Biogen Idec, pharma is adopting another reptilian characteristic, easing its existing franchises into a new, larger skin. Achieving the transformation successfully, though, means avoiding product cannibalization.

You may also be interested in...



Stockwatch: The First Coronavirus Earnings Season May Come Early

The impact of the coronavirus pandemic on investors’ portfolios was immediately apparent at the end of the first quarter of 2020. Equity market sell-offs are reflections of investors’ concern for future financial performance which, if material, may have to be announced early.

Stockwatch: Repeating Past Mistakes At AbbVie

AbbVie’s latest, largest acquisition may be cast in a new light as the pandemic throws stock markets into turmoil and commercial prospects up in the air.

Stockwatch: Coronavirus And Commercialization

The prices of biotechnology and pharmaceutical sector indices continue to be comparatively robust in the face of big falls in global markets as investors expect new drugs and vaccines to be generated by the sector. While it is largely accepted that the life science sector will eventually ride to the rescue, bumper profits are far from guaranteed.

Topics

Related Companies

UsernamePublicRestriction

Register

SC022269

Ask The Analyst

Please Note: Click here for more information on the Ask the Analyst service.

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel