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
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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.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
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.

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