Zacks Industry Outlook Highlights: Merck, Pfizer, Forest Laboratories, Sanofi
and Eli Lilly
CHICAGO, Dec. 4, 2013
CHICAGO, Dec. 4, 2013 /PRNewswire/ --Today, Zacks Equity Research discusses
the U.S. Pharma/Biotech, including Merck (NYSE:MRK-Free Report), Pfizer
(NYSE:PFE-Free Report), Forest Laboratories (NYSE:FRX-Free Report), Sanofi
(NYSE:SNY-Free Report) and Eli Lilly (NYSE:LLY-Free Report).
With 2013 coming to an end, the worst of the patent cliff faced by the
pharmaceutical sector is over. Major blockbuster drugs like Merck's
(NYSE:MRK-Free Report) Singulair, Pfizer's (NYSE:PFE-Free Report) Lipitor,
Forest Laboratories' (NYSE:FRX-Free Report) Lexapro, Sanofi/Bristol-Myers'
(NYSE:SNY-Free Report) Plavix and Eli Lilly's (NYSE:LLY-Free Report) Zyprexa
representing combined branded sales worth more than $15 billion in lost patent
protection over the last couple of years.
However, the effect of the genericization of these products was felt mostly in
2012. While the industry won't be completely free from genericization, the
major patent expiries are over and done with.
Several companies which had been struggling to post growth in the face of
genericization over the past few years should see accelerated growth in 2014.
New products should start contributing significantly to results and increased
pipeline visibility and appropriate utilization of cash should increase
confidence in the sector.
Collaborations, Acquisitions and Restructuring
The pharma sector witnessed major merger and acquisitions (M&A) activity over
the last couple of years. The trend continued this year and going forward, we
expect small bolt-on acquisitions to continue. In-licensing activities and
collaborations for the development of pipeline candidates have also increased
significantly. Several pharma companies are focusing on in-licensing
mid-to-late stage pipeline candidates that look promising, instead of
developing a product from scratch, which involves a lot of funds and time.
Small biotech companies are open to in-licensing activities and
collaborations. Most of these companies find it challenging to raise cash,
thereby making it difficult for them to survive and continue with the
development of promising pipeline candidates. Therefore, it makes sense for
them to seek deals with pharma companies that are sitting on huge piles of
We recommend biotech stocks that have attractive pipeline candidates or
technology that can be used for the development of novel therapeutics.
Therapeutic areas which could see a lot of in-licensing activity include
oncology, central nervous system disorders, diabetes and
immunology/inflammation. The hepatitis C virus (HCV) market is also attracting
a lot of attention.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed
in 1978. The later formation of the Zacks Rank, a proprietary stock picking
system; continues to outperform the market by nearly a 3 to 1 margin. The best
way to unlock the profitable stock recommendations and market insights of
Zacks Investment Research is through our free daily email newsletter; Profit
from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED
to be worth your time! Click here for your free subscription to Profit from
Get the full Report on MRK - FREE
Get the full Report on PFE - FREE
Get the full Report on FRX - FREE
Get the full Report on SNY - FREE
Get the full Report on LLY - FREE
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook:
Zacks Investment Research is under common control with affiliated entities
(including a broker-dealer and an investment adviser), which may engage in
transactions involving the foregoing securities for the clients of such
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment
is the potential for loss. This material is being provided for informational
purposes only and nothing herein constitutes investment, legal, accounting or
tax advice, or a recommendation to buy, sell or hold a security. No
recommendation or advice is being given as to whether any investment is
suitable for a particular investor. It should not be assumedthat any
investments in securities, companies, sectors or markets identified and
described were or will be profitable. All information is current as of the
date of herein andis subject to change without notice. Any views or opinions
expressed may not reflect those of the firm as a whole. Zacks Investment
Research does not engage in investment banking, market making or asset
management activities of any securities. These returns are from hypothetical
portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced
monthly with zero transaction costs. These are not the returns of actual
portfolios of stocks. The S&P 500 is an unmanaged index. Visit
http://www.zacks.com/performance for information about the performance numbers
displayed in this press release.
SOURCE Zacks Investment Research, Inc.
Press spacebar to pause and continue. Press esc to stop.