Mott: Pharma stocks to see ‘dramatic' re-rating

Pharma stocks could be "dramatically re-rated" in the next three to four years, said PSigma's Bill Mott, as analysts realise it is one of the few sectors that can deliver shareholder returns in the face of economic uncertainty.

This comes as Mott and Invesco Perpetual’s Neil Woodford are set to see their portfolios boosted by AstraZeneca’s jump in share price last week following FDA approval of the blood thinning drug Brilinta.  The pharma giant forecast peak sales of $2bn over the next eight years from Brilinta, according to Jeremy Batstone-Carr, an analyst at Charles Stanley, so approval from the US regulator was key for AstraZeneca’s future earnings, particularly as the group is facing a number of drugs falling off patent. Shares rose as much as 3.5% after the news on Thursday to settle around £31.36 a sh...