Connect with us

Biotech

Roche and Sanofi Crowned as the Safest European Pharma Investments

Novartis has the worst rating in the European pharmaceutical industry, while AstraZeneca downgrades its expectations from exceptional to neutral. Credit Suisse has also analyzed the Spanish pharmaceutical company Almirall. In the specialized industry category, the Gallardo family’s company is positioned as the most attractive, along with Lundbeck and UCB.

Published

on

Roche climbs the rankings to become the most attractive pharma to invest in. The Swiss pharma company has earned the highest score among the European industry after scoring a solid earnings outlook and low risk, according to the latest analysis by financial services firm Credit Suisse.

Roche has upgraded its rating to overweight, which is a higher return than the market average. Not following in its footsteps is Switzerland’s Novartis, which has fallen to underweight, as Credit Suisse estimates that it will underperform the market.

If you want to find more details about Roche and other biotech companies, and to find the latest business headlines of the day, download for free our companion app Born2Invest.

Novartis has the worst outlook among European pharma companies

“It has the worst sales and revenue growth for 2005, because it is entering a period in which several patents will expire,” says the Swiss bank.

Novartis has the worst rating in the European pharmaceutical industry, while AstraZeneca downgrades its expectations from exceptional to neutral. Credit Suisse pointed out that one of the main players in vaccines will be one of the most affected by the U.S. healthcare reform.

Credit Suisse has also analyzed the Spanish pharmaceutical company Almirall. In the specialized industry category, the Gallardo family’s company is positioned as the most attractive, along with Lundbeck and UCB.

Beyond the evolution of the pharmaceutical sector, Credit Suisse warns of the possible impact of the macroeconomy on the sector. “After the 2008 financial crisis, we saw a period of slower growth as governments, which fund most of the European Union’s (EU) healthcare spending, tried to save money,” the report recalls.

SEE ALSO  Should we go easier on small-cap companies?

Now, the entity warns that governments will try to implement more reforms, given the constraints on public finances. “Some companies have already told us that several countries are trying to agree on prices for new drugs,” says Credit Suisse. However, after the pandemic experience, the company also expects local pharmaceutical investment to be maintained.

The pharma industry’s ‘drivers’

To drive industry growth between now and 2027, Credit Suisse recommends pharma continue to bet on oncology. Keytruda, a monoclonal antibody used as an anticancer agent, will become the world’s most widespread drug by 2023, according to Credit Suisse.

The reign of anti-Covid-19 products will wane in the coming years. While they represent 43% of sales of the top ten best-selling drugs on the market in 2022, the financier expects them to disappear from the ranking by 2025, although they will not vanish completely from the industry.

Beyond the impact of the pandemic, the drug Humira, to treat rheumatoid arthritis, is the best-selling drug, without taking into account those intended to treat Covid-19. By 2027, Credit Suisse expects Rinvoq and Skyrizi, both of which are recommended for arthritis, to be among the best-selling drugs.

Another opportunity for the industry in the coming years is the treatment of obesity. According to forecasts for the growth of diabetes, the drug Ozempic could become the second or third best-selling drug on the market. Another drug that may break into the top three in the next five years is Dipixent, used for the effects of moderate to severe atopic dermatitis.

SEE ALSO  E-commerce and COVID-19: How to be more resilient in times of crisis

__

(Featured image by Nazir Amin CC BY-SA 2.0 via Flickr)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in PlantaDoce, a third-party contributor translated and adapted the articles from the originals. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Desmond O’Flynn believes in minimalism and the power of beer. As a young reporter for some of the largest national publications, he has lived in the world of finance and investing for nearly three decades. He has since included world politics and the global economy in his portfolio. He also writes about entrepreneurs and small businesses, as well as innovation in fintech, gambling, and cannabis industries.