|[July 29, 2014]
Fitch: Biologics Driving Revenue Gains for U.S. Pharmaceutical Companies
CHICAGO --(Business Wire)--
Fitch Ratings expects that revenues from biologic therapies as a
percentage of total pharmaceutical sales will continue to increase over
the intermediate term as companies increase their prominence in their
drug portfolios, according to a report published today.
Biologics drug sales for the six major U.S. pharmaceutical companies
increased to approximately 36% from 27% over the last three years, as
the number of FDA approvals has outpaced traditional small molecule
Fitch believes that biologics will fare better than small molecule drugs
after patent expirations. The price discounts and market share gains of
biosimilars will be less than those in the traditional generic market,
because most approved biosimilars probably will not be automatically
interchangeable with the original reference biologic early on.
Nevertheless, Fitch believes biosimilar manufacturers, pharmacy benefit
managers and drug distributors will have financial incentives to take
share from the originator therapy.
Furthermore, the number of biologics in branded pharmaceutical
companies' pipelines has and should continue to account for a greater
portion of the number of total pipeline projects.
From a credit perspective, biologics are supportive for the credit
profiles of the branded pharmaceutical industry by offering
opportunities for growth, support for profitability and greater
operational stability in the inermediate term.
The full report 'Biologics on the Rise' is available at 'www.fitchratings.com.'
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: Biologics on the Rise (A
Tailwind for Branded Pharmaceuticals)
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING
THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.
AVAILABLE ON (News - Alert) THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'.
PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS
SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS
OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES
AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF
THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE
RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR
RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY
CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH
[ InfoTech Spotlight's Homepage ]