Fitch International: Brand-name pharmaceutical companies will increase their operating income by 2%-3% in 2014

Source: according to Fitch international, a rating agency of dingxiangyuan, 2013-12-16, the operating revenue of brand pharmaceutical enterprises in 2014 only increased by 2% - 3%, but this is one of the higher ranked industries in the world, and the prospect of this industry remains "stable" Fitch International said in a new report that moderate pressure on patent expiration, EU cost control policies and weak US employment will only be partially offset by new product promotion and strong growth in emerging markets It predicted that pharmaceutical companies in the United States and Europe will not change significantly in their profitability next year Fitch International believes that the patent expiration issue of 2014 conference is in a "controllable" state About $34 billion worth of brand drug patents will expire next year, accounting for about 3.6% of the global drug sales market, compared with $28 billion worth of brand drugs due this year and $55 billion in 2012 New product approvals have been weak this year, with the U.S Food and Drug Administration (FDA) approving only 24 products as of November 30, compared with 39 in 2012 However, Fitch International believes that the market launch of new products in 2012-13 will help promote the medium and long-term growth of the pharmaceutical industry The agency also predicted that the pharmaceutical industry would continue to cut costs in order to mitigate the impact of market weakness on profitability Although selling expenses, general expenses and management expenses are the main expenditure items, pharmaceutical companies including Bristol Myers Squibb, Pfizer, MSD, AstraZeneca, GlaxoSmithKline and Sanofi may also give priority to R & D expenditure These companies may have later R & D projects completed or cooperate with other market participants Lilly has also said it will invest heavily in research and development Pharmaceutical companies are likely to continue to spin off businesses that lack strong strategic coordination or have low profit margins and growth rates GlaxoSmithKline has sold its non core brand business, Pfizer has spun off its nutrition and animal health business, while other pharmaceutical companies are adjusting their business mix, Novartis intends to sell its blood transfusion diagnosis business to Grifols, and Johnson & Johnson is reportedly looking for a buyer for its clinical diagnosis business While these divestitures often improve growth and profit prospects, they also narrow the focus of pharmaceutical companies Source address: http:// ﹣ Pharma ﹣ revenues ﹣ to ﹣ rise ﹣ 2 ﹣ 3 ﹣ in ﹣ 2014 ﹣ says ﹣ fitch.aspx