BUZZ-Moody's says pharma outlook turns 'positive' on GLP-1 drug push

Reuters03-14

** Moody's Ratings says GLP-1 and other blockbuster drugs have pushed the outlook for U.S. pharmaceutical credit to "positive" from "stable"

** The agency's outlook has been "stable" since June 2022

** Industry growth will benefit from rising use of blockbuster drugs, including GLP-1 treatments for diabetes and weight loss from Novo Nordisk and Eli Lilly , the ratings agency says

** Positive outlook reflects expectations of 4%-6% annual core earnings growth over the next 12-18 months

** This reflects growth in oncology, immunology and other blockbuster areas

** Beyond the 12-18 month forecast period, drug pricing provisions in the U.S. Inflation Reduction Act will more significantly constrain industry growth - Moody's

** Says rising exposure to patent cliffs as the decade progresses will also pressure growth

** Growth outlook for generic drugs is improving, says the ratings agency

** A flurry of deals are enhancing companies' pipelines including Bristol Myers' acquisition of Karuna Therapeutics and AbbVie's deal with Cerevel Therapeutics - Moody's

(Reporting by Sriparna Roy in Bengaluru)

((Sriparna.Roy@thomsonreuters.com;))

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