Story of the day

Global pharmaceutical industry overview::

• Many major pharmaceutical companies are facing the risk of a "patent cliff".
• When patents expire, generic versions of drugs enter the market at lower prices, impacting original drug sales.
• Taken to example case of Roche's drug Avastin saw a 75% sales drop from USD 7.1bn in 2019 to USD 1.8bn in 2023 after its patent expired.

Financial Impact and Predictions:

• IQVIA¹ predicts a significant increase in sales loss due to patent expiry, from USD 67bn (2018-23) to USD 145bn (2024-28) in the US alone.
• Eight out of 13 major pharmaceutical players could see 30% or more of their sales exposed to patent expiry in the US by 2026, leading to uncertainty in their sales forecasts.

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However there are certain company faces low risk of patent expiry and visible catalysts ahead.

Company with low patent cliff risk:

• One pharmaceutical company stands out with less than 20% of its sales exposed to patent cliffs.
• This company has potential share price catalysts in the next 12 months, including five new drugs in its pipeline awaiting approval or new clinical data readouts.
• Potential upcoming treatments include those for diabetes, Alzheimer’s disease, atopic dermatitis, and atherosclerotic cardiovascular disease.

Below are some Equity Funds with exposure to healthcare and pharmaceutical sectors*

• Schroder Global Sharia Equity Fund
• BNP Paribas Cakra Syariah USD
• Bahana Global Healthcare Sharia USD
• Manulife Saham Syariah Golden Asia USD
• Batavia Global ESG Sharia Equity USD