BRIEF-Moody's On Global Pharmaceuticals Says Revision Of Industry Outlook To Stable From Positive As Patent Exposures Moderately Increase

BY Reuters | CORPORATE | 06/29/22 11:37 AM EDT

June 29 (Reuters) - Moody's :

* MOODY'S ON GLOBAL PHARMACEUTICALS SAYS REVISION OF INDUSTRY OUTLOOK TO STABLE FROM POSITIVE AS PATENT EXPOSURES MODERATELY INCREASE

* MOODY'S ON GLOBAL PHARMACEUTICALS SAYS OUTLOOK FOR INDUSTRY REFLECTS EXPECTATIONS FOR CREDIT FUNDAMENTALS IN INDUSTRY OVER NEXT 12 TO 18 MONTHS

* MOODY'S SAYS GLOBAL PHARMA SECTOR WILL REMAIN GENERALLY BUFFERED FROM GLOBAL MACRO CHALLENGES RELATED TO ECONOMIC GROWTH,LABOR PRESSURES, INFLATION

* MOODY'S SAYS SUPPLY CHAINS WILL CONTINUE TO PROVE RESILIENT, AND CONFLICT IN UKRAINE WILL HAVE LIMITED IMPACT ON GLOBAL PHARMACEUTICAL REVENUE

* MOODY'S, ON GLOBAL PHARMA, SAYS GROWTH OUTLOOK FOR GENERIC DRUGS IS WEAK

* MOODY'S, ON GLOBAL PHARMA, SAYS PRICING PRESSURE ON GENERIC DRUGS ALSO REMAINS A DRAG THAT WILL LIMIT GROWTH, ESPECIALLY IN THE U.S.

* MOODY'S ON GLOBAL PHARMA SAYS UNDERLYING GROWTH TO BENEFIT FROM GROWTH IN BLOCKBUSTER DRUGS, TEMPERED BY EXPOSURE TO GENERIC & BIOSIMILAR COMPETITION

* MOODY'S, ON GLOBAL PHARMA, SAYS IN EUROPE AND ASIA, THE DOWNWARD PRESSURE ON GENERIC DRUG PRICES WILL REMAIN LESS SEVERE THAN IN THE US.

* MOODY'S ON GLOBAL PHARMA SAYS ACQUISITION ACTIVITY WILL REMAIN ROBUST, KEY AREAS OF ACTIVITY WILL INCLUDE ONCOLOGY AND RARE DISEASES

* MOODY'S ON GLOBAL PHARMA SAYS SOCIAL RISKS INCLUDE RISING EXPOSURE TO PROPOSALS AIMED AT REDUCING DRUG PRICES, ESPECIALLY IN U.S.

* MOODY'S, ON GLOBAL PHARMA, SAYS INDUSTRY REMAINS FLUSH WITH CASH, WHICH TOTALED $222 BILLION AS OF DEC. 31, 2021 FOR 19 LARGE INVESTMENT-GRADE ISSUERS

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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