We see further to go in the sector’s re-rating, driven by the end of the patent cliff, R&D pipelines at their most attractive in a decade, and strong cash positions underpinning buybacks and dividends
Key themes examined in this report: US drug pricing; the emergence of Biologics and the threat of Biosimilars; and the promise (and price) of Immuno-oncology. We also look at M&A and restructuring as companies refocus on their core business
Key stock calls: Novartis (Buy), Sanofi (Buy), Bayer (Buy), GSK (Buy) and Shire (Reduce)