Lavish windfall gains from biotechnological unicorns
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
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Internationalization
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Capital Intensity
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Profitability
- Medicine demand bolstered by growing middle classes in Emerging Markets and aging population as a whole
- Resilience of drug spending irrespective of economic cycle, coupled with huge public support for improving people’s healthcare needs
- High level of R&D expenditure well covered by strong cash generation amid the pressing need for Covid-19 vaccines to reach herd immunity worldwide
- mRNA technology close to being a game-changer for the sector, especially in oncology treatments
- Venture capitalists and public investors’ appetite for investing in (listed) biotechnology firms
- Supply-chain disruptions due to states’ pressure to ‘reshore’ drug production within Western countries
- Lengthy procedures for new drug approvals on top of stiff price regulations
- Generic drug makers plagued with lower profit margins and higher debt gearing than patented drug ones
- Limited production capacities making it difficult to meet urgent delivery needs of all Covid-19 vaccines worldwide
- Bargaining power of India and China regarding vaccine production and delivery
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 |
LATEST NEWS ABOUT PHARMACEUTICALS
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What to Watch 03 May 2024
Higher rates by a fiscal thread, good Eurozone news before the Eurovision, and delayed normalization for cross-asset correlations.
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What to Watch 26 April 2024
Higher for longer reloaded in the US, EM financial markets feeling the pinch and the link between inflation and elections