Mixed Macro-Demographic Drivers For Healthcare Sector

The macro-economic drivers for the Healthcare sector as a whole are mixed. Demographics remain supportive. However patent expiration risk and increasing pressure from generic competition are a concern for Large-Cap pharmaceuticals in particular and the sector as a whole has been impacted by negative sentiment.

• Recent issues surrounding product safety have highlighted risks in terms of lost revenue, and potential litigation, which have impacted both Large-Cap pharmaceuticals and Bio-Technology.
• In the United States, the implementation of the Medicare programme is expected to put growing pressure on margins for branded drugs, which should support generic manufacturers. The political outlook for a Democratic win at the next elections should further strengthen this scenario.