Moody's says pharma outlook turns 'positive' on GLP-1 drug push

Karuna Therapeutics

14/03/2024 14:35

** Moody's Ratings says GLP-1 and other blockbuster drugs
have pushed the outlook for U.S. pharmaceutical credit to
"positive" from "stable"
    ** The agency's outlook has been "stable" since June 2022
    ** Industry growth will benefit from rising use of
blockbuster drugs, including GLP-1 treatments for diabetes and
weight loss from Novo Nordisk  NOVOb.CO  and Eli Lilly  LLY.N ,
the ratings agency says
    ** Positive outlook reflects expectations of 4%-6% annual
core earnings growth over the next 12-18 months
    ** This reflects growth in oncology, immunology and other
blockbuster areas
    ** Beyond the 12-18 month forecast period, drug pricing
provisions in the U.S. Inflation Reduction Act will more
significantly constrain industry growth - Moody's
    ** Says rising exposure to patent cliffs as the decade
progresses will also pressure growth
    ** Growth outlook for generic drugs is improving, says the
ratings agency
    ** A flurry of deals are enhancing companies' pipelines
including Bristol Myers'  BMY.N  acquisition of Karuna
Therapeutics and AbbVie's  ABBV.N  deal with Cerevel
Therapeutics - Moody's

 (Reporting by Sriparna Roy in Bengaluru)
 ((Sriparna.Roy@thomsonreuters.com;))