After the volatility of pandemic-related sales, investor and analyst attention turned to pharma’s core businesses. With exclusivity losses weighing on those large components of pharma, Sanofi’s reclassification may bring some unwelcome attention.

The sun shines over a sector with multi-blockbuster products in their prime. But clouds are looming, and highly innovative products that cannot replace the sales shortfalls could lead to a re-rating of the sector’s growth prospects.

J&J’s Medtech division outshone pharma while recently launched innovative products contributed minimally: it is to be hoped investors’ reactions to the first set of big pharma Q1 results will not set the tempo for earnings season.

In contrast to the SEC’s view that public companies’ regulatory filings give investors all the information needed to make an investment decision, the discount rate used to value a company may not reflect all its risks.

Healthcare conglomerates that divorce consumer, animal health and even generics businesses from their pure-play branded pharmaceutical groups could leave a less diversified and riskier sector in uncertain times. But the advantages are apparent.

The overused phrase ‘pipeline in a product’ translates to ‘disappointment in a product’ when the number of indications in the pipeline contracts towards zero.