Pharmaceuticals

Although the sector faces several challenges, the pharmaceutical industry remains one of the most resilient sectors. It benefits from demographic changes and evolving lifestyles, which lead to greater consumption of medications and the development of public health insurance systems around the world.

However, various challenges persist. Pressures from payers to lower drug reimbursement prices, government criticism regarding the perceived lack of transparency in price setting, and difficulties within the distributor and pharmacy chain segments are among the sector's main concerns. Additionally, in the United States, the public health impact of the opioid epidemic continues to affect both manufacturers and retailers. Furthermore, the measures taken by the U.S. against Chinese pharmaceutical service companies, through the Biosecure Act, aimed at severing ties between U.S. biopharmaceutical companies and their contract manufacturers in China, could drive U.S. companies to seek alternatives in India or Europe.

Finally, given the loss of patents on profitable drugs, the sector must rebuild its therapy portfolio. This is typically achieved through significant and ongoing efforts in research and development. Another source comes from acquisitions of targets, particularly in biotechnology. However, high interest rates and more limited access to credit could not only slow down these acquisitions but also hinder the development of these biotech firms, whose business model is highly capital-intensive.