GO
| HSI1 | 25,244.81 | -66.40 | 144.87B |
| HSCEI1 | 8,397.42 | -52.68 | 40.91B |
| Back Zoom + Zoom - Block Traded | |
|
2026-09-03 13:15:46 CLSA released a global healthcare sector outlook report stating that the global pharmaceutical supply chain is entering a decade-long restructuring phase. More than USD500 billion of branded drug sales are facing a patent cliff, while broader drug demand and accelerating localization of manufacturing are driving a new wave of R&D investment, capacity expansion and outsourcing demand. Value creation is increasingly concentrating among platform leaders with scale, technology capabilities and global localized footprints. The broker believes Thermo Fisher Scientific Inc (TMO.US), Switzerland's Lonza and China's WUXI APPTEC (02359.HK) respectively represent the structural advantages of the US, Europe and China, making them preferred beneficiaries of the industry's current reset. CLSA said that more than USD500 billion of branded drug sales will face patent expirations between 2026 and 2032. The proportion of sales affected by patent expirations is expected to rise from 6.5% in 2028 to more than 8% in 2032. Large pharmaceutical companies will be forced to replenish pipelines through increased R&D spending, licensing activities and targeted mergers and acquisitions, driving growth in R&D activities, technology transfer and commercialization volumes, benefiting life sciences tools companies, contract research organizations (CROs) and contract development and manufacturing organizations (CDMOs). Meanwhile, global biopharmaceutical growth is no longer driven solely by oncology. Obesity, diabetes, immunology and other chronic diseases are becoming increasingly important. Drug modalities are also evolving from small molecules to more complex therapies such as antibody-drug conjugates (ADCs), bispecific/multispecific antibodies and peptides. Governments and major pharmaceutical companies are also increasingly viewing manufacturing security and geographic diversification as strategic priorities. Selective reshoring of high-value pharmaceutical manufacturing to the US is expected while maintaining global supply networks. On individual stocks, CLSA initiated coverage on Thermo Fisher Scientific Inc (TMO.US) with an "Outperform" rating and a TP of USD748, citing its broad exposure as a leading life sciences tools platform to a recovery in biopharmaceutical investment and US manufacturing reshoring. The broker maintained an "Outperform" rating on Switzerland's Lonza and raised its TP from CHF667 to CHF759, saying its scarce biologics production capacity should help capture growth from localization and outsourcing. WUXI APPTEC (02359.HK) maintained an "Outperform" rating, with the H-share TP raised from HKD214.1 to HKD262, while the A-share TP for APPTEC (603259.SH) was lifted from RMB187.8 to RMB230. Despite geopolitical concerns, CLSA believes its technology leadership will continue to benefit from rising demand for advanced pharmaceutical outsourcing. Samsung Biologics (207940.KS), covered by South Korean analysts, also maintained an "Outperform" rating with a TP of KRW1.8 million, and is expected to benefit from themes including peptide demand driven by the patent cliff, dual sourcing of biologics and US reshoring. (da/a)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |