British Pharmaceutical Companies Lag Global Peers

Which pharmaceutical companies have revenue generating drugs in the pipeline? And how to GlaxoSmithKline and AstraZeneca fair against their US and European counterparts?

Damien Conover, CFA 4 November, 2014 | 9:30AM
Facebook Twitter LinkedIn

Patent protection remains a core source of the wide moat ratings for most of the big pharmaceutical firms. A company’s ‘moat’ is its competitive advantage over its peers.

Strong pipelines and slowing patent losses over the next five years should accelerate the growth rates of the large pharmaceutical stocks and increase the returns on invested capital. Two key themes strengthening the pipelines are shorter drug development times and increasing exposure to biologics.

Leading the group, Sanofi (SAN) and Merck (MRK) look best positioned based on the strength of their pipelines, currently marketed products, and patent losses over the next five years. Sanofi’s strengthening pipeline, with a portfolio of steadily increasing products, more than offset limited generic competition to long-acting insulin Lantus.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
AstraZeneca PLC8,727.00 GBX-1.33Rating
GlaxoSmithKline PLC1,390.60 GBX0.19Rating
Merck & Co Inc73.61 USD0.77Rating

About Author

Damien Conover, CFA  is an equity analyst and associate director at Morningstar.

© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies       Modern Slavery Statement