The 20-billion-dollar takeover the U.S. biotech company Genzyme of the French Sanofi-Aventis has the stock headlights finally directed to the pharmaceutical industry. Even in recent years was the almost only mammoth acquisitions. Otherwise there was little for investors that is cause for celebration: Pharma shares are among the flops of recent years. Meanwhile, however, the industry is valued so low that long-term investors should build positions first - and likely win pharma stocks, even apart from spectacular deal of attention.
leave now and - who has followed this advice has to do with pharmaceutical shares for decades, not much wrong. Ageing Society and increasing drug needs of emerging and developing countries seemed to growth and the share prices no boundaries. But since the beginning of this millennium, this "law" repealed. Investors shun pharma stocks since then, and stagnating prices - apart from exceptions such as takeover candidates, biotech pioneers or companies with superior market position as the Danish diabetes specialist Novo Nordisk.
This has meant that have happened to the former high-flyers who left with the best title. This naturally causes. The pharmaceutical industry has added two developments rather: first, the expiry of patents. This resulted in revenue losses as cheap Imitation products on the market and are prescribed increasingly crowded due to skyrocketing health care costs. Second, the rapidly decreasing number of new drugs. According to Sanofi-chief Viehbacher brought the industry in 2010 despite 63 billion U.S. dollars out of research effort, only 22 new products. In part this was because the regulatory authorities, particularly in the U.S., have become extremely cautious.
The pharmaceutical industry has responded to these developments with massive cost-cutting programs - and to acquisitions of biotech companies like Genzyme now by Sanofi, which fails the admission balance much better. Had the pharmaceutical industry in 2000 83 percent market share of drugs, so it was 2010, only 75 percent. The rest was accounted for by generics manufacturers and Biotchfirmen.
provide insider Now, however, that the pressure on the industry. Because the authorities are apparently something courageous at the approvals - including, in order not to compromise the research. This could be the worst in the development of new drugs have been reached. In addition, the sales growth in emerging and developing countries more than expected. Therefore, the yield stress seems to subside, and the still highly profitable pharmaceutical companies are expected in the next years can earn slightly higher margins.
in stock prices this prospect is currently considered barely. But for too long should the investors no longer be hidden, especially value investors like Warren Buffett and share (with Glaxo and Sanofi) already on the industry. For this review speaks for itself: of the ten largest pharmaceutical companies have been on a seven-digit price-earnings ratio and dividend yields are an average of five percent.
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