Makings of a Wide Moat in Diabetes Care
Novel products will allow drug firms to achieve price premiums on diabetes drugs in the U.S. and at least retain level pricing internationally.
Quarter-End Insights
Mentioned: AstraZeneca PLC (AZN)
, GSK PLC (GSK)
, Sanofi SA (SAN)
, Merck & Co Inc (MRK)
, MannKind Corp (MNKD)
, Express Scripts Holding Co (ESRX)
, Bristol-Myers Squibb Co (BMY)
, Eli Lilly and Co (LLY)
, Anthem Inc (ANTM)
, Johnson & Johnson (JNJ)
- If we were to assign the diabetes therapeutic area a moat, it would be wide, as we think barriers to biosimilar competition are high, pipeline productivity is strong, and unmet patient need remains high.
- Next-generation insulins and novel oral therapies continue to offer safer and more effective ways of both controlling blood sugar and also lowering the risk of hypoglycemia and cardiovascular complications.
- We expect sales of branded diabetes products to increase to $58 billion in 2018 from $33 billion in 2013, a 12% compound annual growth rate, and we think undervalued Sanofi (SNY) is well-positioned to benefit from the demographic trends supporting the diabetes growth.
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Damien Conover does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.