Perspectives Blog

Specialty pharmaceuticals – The fastest growing category of healthcare spending

Harlan Sonderling, CFA, Senior Healthcare Analyst | January 27, 2014

A complex industry has developed to manage the delivery and costs of the therapeutic innovations in specialty pharma Healthcare payers are focused on managing specialty pharma spending, their most rapidly growing medical cost The accelerating pace of change and disruptive therapeutic advances create significant opportunities across healthcare delivery Pharmaceuticals are central to the effort to improve medical outcomes and control medical cos…

M&A in healthcare – Out with the old, in with the new?

Harlan Sonderling, CFA, Senior Healthcare Analyst | March 31, 2014

…ther than general practitioners, or Generics company selling mostly cheap (less expensive) copies of branded medicines whose patents have expired, or Company that manufactures and sells some combination of branded and generic pharmaceuticals. Company A announces its cash or cash and stock acquisition of Company B, another specialty or generics company, maybe one incorporated in a low-tax jurisdiction. Company A pays a premium, as acquirers almos…

Antibiotic resistance – What it means for drug manufacturers, hospitals and diagnostic companies

Columbia Management, Investment Team | May 12, 2014

…model. The bill provides the ability for companies to charge higher prices that are more in-line with the high unmet need and smaller target patient populations of these so called “super bugs.” Near-term launches from Cubist Pharmaceuticals (ceftolozane/tazobactam) and an expected submission from Forest Labs (ceftazidime/avibactam) will set the tone for the results of these new regulations. CDC Guidance In September, the CDC named urgent antibio…

Death, taxes and Medicaid expansion

Harlan Sonderling, CFA, Senior Healthcare Analyst | September 8, 2014

…e treated for previously untreated health conditions. States have smartly moved their highest acuity Medicaid enrollees into full-risk managed care programs covering almost all aspects of care, from providers to facilities to pharmaceuticals; states are rapidly doing the same for high-cost dually-eligible Medicare-Medicaid beneficiaries, the elderly poor. Medicaid managed care insurers operate on thinner margins than commercial insurers and even…

India’s new government fires investor enthusiasm

Natasha Ebtehadj, Fund Manager, Threadneedle International Limited | September 8, 2014

…hich continue to win international market share and enjoy good earnings visibility. IT services is an area where Indian companies are doing very well with most experiencing strong revenue and earnings growth. We also like the pharmaceuticals businesses, which are benefitting from the strong growth in the U.S. generics market by launching niche, generic products when established products go off patent. The main risks to India’s positive outlook Go…

Predicting new drug sales is more art than science

Harlan Sonderling, CFA, Senior Healthcare Analyst | April 14, 2014

Predicting sales of new medicines is highly inaccurate and subject to significant and often costly errors. While investment analysts can draw on research tools and experience, history suggests new drug forecasting will remain more art than science. Despite the high level of uncertainty and variability in new drug forecasts, the innovative medicine industry is alive and well. Predicting sales of new medicines is highly inaccurate and subject to…