Abating pricing pressure in US market good news for pharma funds

While the risk from USFDA strictures remains, aggressive investors may take limited bets with 5-7-year horizon

In contrast to their strong performance in 2020 and 2021, pharmaceutical and healthcare funds experienced a decline in 2022, with returns plummeting by an average of 9.8 per cent. This trend has continued in the current year, with year-to-date return remaining in the negative (-4.9 per cent). In the past three months particularly, pharma funds have been hit hard, experiencing a decline of 7.9 per cent.

Post-Covid-19 blues

A number of factors affected the sector’s earnings in the post-Covid-19 period. “Excess stocking in the supply chain, rise in raw material costs due to China-led shortages, and weak pricing in the