Let me translate that headline for you. It's based on Moody's Investor Services revising its outlook for the global pharma industry as "stable". Since 2007, Moody's had given the industry a negative credit rating.
Why the change? Moody's believes the Industry is stable as it has hit rock bottom and will reach an earnings trough (caused by its latest patent cliff) in late 2012. Then there's no where to go but up from here. So after the industry has lost Lipitor and Plavix to generic competition -- what else can match that rapid free fall?
Nothing. To paraphrase the Doors, "Pharma's been down so god damned long, that it looks like up to we." Maybe its not time to crack out the bubbly though.
Posted by Bruce Lehr Sep 25th 2012