The healthcare debate
Pharmaceutical (PBL) stocks continue to face headwinds as mounting political pressure on drug pricing gains momentum. With drug prices already falling at 1% YoY, reports of key lawmakers coming to a bipartisan agreement aimed at increasing competition from cheaper generics should further weigh on drug prices. However, health care service providers (HES) will continue to benefit from relatively stronger pricing as they are less vulnerable to political pressure and foreign competition. We expect the current divergence between HES & PBL earnings to continue, which should support stock prices of the former.
DISCLAIMER: This report was prepared for circulation to institutional and sophisticated investors only and without regard to any individual’s circumstances. This report is not to be construed as a solicitation, an offer, or an investment recommendation to buy, sell or hold any securities. Any returns discussed represent past performance and are not necessarily representative of future returns, which will vary. The opinions, information, estimates and projections, and any other material presented in this report are provided as of this date and are subject to change without notice. Some of the opinions, information, estimates and projections, and other material presented in this report may have been obtained from numerous sources and while we have made reasonable efforts to ensure that the content is reliable, accurate and complete, we have not independently verified the content nor do we make any representation or warranty, express or implied, in respect thereof. We accept no liability for any errors or omissions which may be contained herein and accept no liability whatsoever for any loss arising from any use of or reliance on this report or its contents.
© 2019 Pavilion Global Markets Ltd. All rights reserved. This report may not be reproduced, distributed or copied, in whole or in part, in any form, without the written consent of Pavilion Global Markets. Pavilion Global Markets Ltd. is a CIPF member.