Despite the uncertainty that loomed over the pharma and biotech sectors with unexpected outcomes from both the U.S. presidential election and U.K.’s vote to leave the EU, 2017 may bring renewed energy to the industry with potential for more corporate activity and cash flow. According to EP Vantage, the editorial branch of the market intelligence firm Evaluate, the Trump victory may lead to a slew of business-friendly initiatives, based on the predicted lessening of political scrutiny towards drug pricing. The report shows that although the issue of drug pricing is not going away, 2017 will start with a flush of new confidence for investors, and a possible uptick in mergers and acquisitions.
According to the “EP Vantage 2017 Preview” report, 2017 will see:
“With a pro-business administration established in the world’s biggest drugs market, equity analysts and investors are adopting an optimistic outlook for the pharmaceuticals industry in 2017, and predict benefits for biotechnology stocks,” said Lisa Urquhart, EP Vantage editor. “On the flip side, the failure of Eli Lilly’s Alzheimer’s disease project solanezumab, this November, is a staunch reminder of the inherent risk in drug development—and the dangers of overblown expectations.”