Pharma Industry Profitability Remains Stable

BMI View: Investment in innovation and the consequential introduction of high-priced medicines is still key to maintaining pharmaceutical industry profit margins. Companies ought to counter-intuitively enter lower margin emerging markets. Although these growth markets have lower profitability, pharmaceutical firms ought to establish a presence now as this foundation will facilitate the introduction of new products, as well as price rise in the future; thereby enabling high profitability.

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