NEW YORK, NY--(Marketwire -02/01/12)- Major Pharmaceutical companies have seen their profits drop in recent quarters as patent protection on their largest products continues to shrink revenues. By 2014, $90 billion of branded drugs will go generic, CNBC reports, leaving Big Pharma to find new ways to preserve margins. Five Star Equities examines the outlook for companies in the Drug Manufacturers - Major Industry and provides equity research on Eli Lilly & Company (NYSE: LLY - News) and AstraZeneca Plc (NYSE: AZN.L - News) (LSE: AZN.L - News). Access to the full company reports can be found at:
A new report from Research and Markets, says the generics market remains a major growth area in the global healthcare market, "with market growth significantly higher than that of patented drugs and the overall pharmaceutical market." Overall, Research and Markets says that the global generics market was valued at US$123 billion in 2010, and has been estimated to reach US$ 180 billion by 2014, at a CAGR of 10.6% during 2011-14.
A recent report from Moody's argues that Major Pharmaceutical firms could generate enough revenue from new drugs this year to ease concerns over the patent cliff that many of them are facing. "Revenue opportunities in the drug markets for hepatitis C, multiple sclerosis and atrial fibrillation come as the industry braces for a steep cliff of patent expirations and ongoing pricing pressure," writes analyst Michael Levesque.
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Earlier this week Eli Lilly reported that its fourth quarter net income tumbled 27 percent as the drugmaker faced another revenue-sapping patent expiration for a key product. Eli Lilly lost U.S. patent protection in October for its best-selling drug, the antipsychotic Zyprexa, which generated 19 percent of its third-quarter revenue.
Lilly earned $858.2 million, or 77 cents per share, in the three months that ended December 31 -- down from $1.17 billion, or $1.05 per share, in the final quarter of 2010.
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