Analyst Pin-board Pharmaceuticals – Steady but Slow Progress
We believe rising healthcare spending and the replacement of foreign drugs with domestic ones in healthcare facilities are a big and inevitable trend. However, poor results of many listed companies in 2018 has proven that the transition will probably take many years. Therefore, we only have a NEUTRAL view on the pharmaceutical industry for 2019 even though the transition progress in hospital channels may somehow speed up. Investor may expect 2019 to be a tough year for equity markets and consider into this defensive sector. However, winner in the sector needs to have proper facilities, a supportive strategic partner, and eventually manage to sell the drugs to end-users.
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