6/04/2012

Big Pharma’s New Drugs Counteract Patent Cliff: Moody’s

Big pharmaceutical companies could generate enough revenue from new drugs this year to ease concerns over the patent cliff that many of them are facing, Moody’s says in a report today.

“Revenue opportunities in the drug markets for hepatitis C, multiple sclerosis and atrial fibrillation come as the industry braces for a steep cliff of patent expirations and ongoing pricing pressure,” writes analyst Michael Levesque.

In particular, new drugs could ease rating pressure on Johnson & Johnson (JNJ), which is expected to debut numerous promising new drugs this year. J&J is introducing new drugs to treat Hepatitis C and atrial fibrillation. The atrial fibrillation drug Xarelto, which J&J markets with Bayer AG, could “create a new category of blockbuster drugs, upsetting the 50-year-old market for warfarin.”

Novartis (NVS) is also expected to post strong sales this year of its MS drug Gilenya, the first oral drug to treat the disease.

J&J issued disappointing guidance this morning, and shares were recently down 0.2%.

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