China worries could hurt pharma’s health

 23-Aug-15, The Wall Street Journal 

The big worries on growth hanging over the pharmaceuticals industry are poles apart.

Pressure on U.S. drug pricing is casting a shadow over the sector’s most lucrative market. But slowing emerging-market growth, notably in China, shouldn’t be ignored.

Image: Nai 500

Emerging-market sales for the big pharmaceuticals firms tracked by Sanford C. Bernstein increased by about 5.5%, year over year, in the second quarter, well below the 9% average of the prior four quarters.

Macroeconomic pressures are increasing. Weaker currencies hurt sales, a factor put into clear focus by China’s devaluation of the yuan.

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