Profitability growth expected to accelerate in 2014 (Il Sole 24 Ore Radiocor) – London, April 23 – Moody's maintains a stable outlook for the pharmaceutical sector globally thanks to expectations of a return to growth in the sector's profits this year. Thus a note from the agency, which adds that it has however revised downwards its estimates on the growth of the aggregate Ebitda of the companies to which it has assigned a rating to 1% from +3% in December 2012 due to higher than expected pressures linked to the expiry of patents for some groups. In 2014, adds Moody's, profitability growth should accelerate as the negative effects of patent expirations diminish. Moody's has maintained a stable outlook for the global pharmaceutical industry since September 2012. Supporting the growth of the pharmaceutical sector's profit this year and next, continues the agency, "a series of innovative and promising products", particularly in the treatment of hepatitis C, multiple sclerosis and certain types of cancer, while efforts to reduce the US deficit and continued price pressures, particularly in Europe, will continue to weigh on revenues. In this context, Moodys' estimates that the healthcare reforms underway in Europe will lead to a drop in sales of around 5% for pharmaceutical multinationals. Lastly, Moody's expects a recovery in acquisitions this year given the high financial availability of some groups such as Roche, Novartis and Pfizer.
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(RADIOCOR) 23-04-13 15:06:09 (0315) 5 NNNN
