Tag Archives: Novartis

Pharmaceuticals, a branch with several challenges

Recent Pfizer attempt to buy AstraZeneca brings back to news the pharmaceutical branch. This industrial sector has always a defensive perspective for investors, as healthcare is needed even in crisis times. American and European companies broadly dominate the ranking, but there is a beginning of some movement in emerging countries.

A PwC report points out three challenges in the branch: rising customer expectations, poor scientific productivity and management culture sclerosis. These aspects are quite important, as the sector depends from innovation and high quality staff to develop its business. But there is also a deeper trend: emerging markets begin to have a higher demand, as their population has increased its purchasing power.

But what is happening to five of the main pharmaceuticals in the markets? Let’s have a look in T-Advisor.

Pharmaceuticals: Pfizer figures in T-Advisor

Pfizer reduced its revenues 6% in 2013, till US$ 51,584 million. On the contrary, the net income increased 51%, till US$ 22,003 million (US$ 3.19 per share).

Pharmaceuticals: Novartis figures in T-Advisor

Novartis improved its sales 2% in 2013, till US$ 57,920 million. The net income reduced a little 0.3%, till US$ 12,533 million (US$ 5.09 per share).

Pharmaceuticals: Sanofi figures in T-Advisor

Sanofi reduced its revenues 0.5% in 2013, till € 32,951 million. The net income worsened 17.5%, till € 6,687 million (€ 5.05 per share).

Pharmaceuticals: Glaxo figures in T-Advisor

Glaxo’s turnover in 2013 increased slightly 0.3%, till GBP 26,505 million. The net income improved 20.8%, till GBP 5,436 million (GBP 1.10 per share).

Pharmaceuticals: Bayer figures in T-Advisor

The comparison in the main date made by T-Advisor has the following results:

Performance

YTD

Volatility

YTD

Score

Liquidity

VaR

1 week

Pfizer

-3.72

18.96%

3.54

10

-4.81%

Novartis

12.23%

10.45%

8.80

9

-2.82%

Sanofi

1.21%

17.08%

5.16

10

-4.63%

GlaxoSmithKline

1.43%

15.56%

5.35

9

-3.33%

Bayer

3.78%

21.05%

7.94

10

-5.35%

Pfizer performance in 2014 suffers from its failed AstraZeneca merge.  Sanofi, Glaxo and Bayer show a little development with very modest scores and performances. The better is the Swiss Novartis, which has increased powerfully its performance in this year and shows an interesting score and VaR. The recent purchase of Glaxo’s oncology business has been very welcomed in the markets. The sector will surely experience new market movements.