The post-pandemic era has shaken the pharmaceutical sector. APME in its health care industry investments study 2023 concluded that companies, which did not rely too much on COVID, were able to withstand the end of the pandemic in a better way. These are mainly pharmaceutical giants such as Pfizer, Johnson & Johnson or AstraZeneca, whose vaccines or anti-COVID drugs business is not standing or falling.
The healthcare sector has also seen a number of cases where companies are fighting to keep up with their former success. This is especially the case with companies such as BioNTech (losing 49 % of its value during the last 12 months) * or Moderna (- 27 %)*. They bet too much on vaccines and if they fail to use the experience gained, their life cycle may close.
However, it was not only the Coronavirus crisis that significantly affected the healthcare sector. Practically immediately, it was replaced by an inflationary crisis, which represents a significant burden on individual countries’ health systems. Here, too, it is partly a consequence of COVID, which disrupted supply chains and exposed healthcare systems to another difficult test: medicine shortages.
“The vast majority of active substances are produced in China or India, so Europe or the United States have to face problems with the supply of medicinal products. However, this increases pressure on public health insurance budgets, when drug manufacturers deliver their products primarily where they can be paid decently for them,” commented increasing global issue Peter Svoren, CEO of APME FX Trading Europe.
Related to this is the threat of pharmaceutical companies leaving countries where governments intend to save money at all costs. We could witness something like this at the turn of 2022 and 2023 in Great Britain, from where the American companies Eli Lilly and AbbVie are moving. And they are looking for a more attractive environment.
How the major world players are doing is analyzed in the TOP 20 Health Care Companies 2023 chart.
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* Past performance is no guarantee of future results
* Market capitalization, 16 May 2023, y-o-y change in %