Bad News For Pharma In World’s Second-Biggest Market
Pharma companies have great plans for emerging markets like China and India, with their billions of potential customers. As Ed Silverman has written, companies like Pfizer (PFE), Merck (MRK), Eli Lilly (LLY), Bristol Myers-Squibb (BMY), GlaxoSmithKline (GSK) and Sanofi (SNY) have regularly mentioned these as avenues for growth and ways to combat problems like patent expirations and pricing pressures in developed nations.
But emerging markets aren’t proving a panacea. See stories here, here, here and here. And in the latest installment of bad news, a panel of Indian ministers wants to regulate the prices of 348 drugs, up from the 74 drugs they were previously considering, Reuters reports. The question for investors: how high are the emerging markets-related expectations built into this stock chart?