The Big Question: Is now the right time to buy pharmas?

John Bennett Director of European equities, Henderson   For growth Investors should now be buying pharma for growth, rather than its defensive qualities. For many drug companies, the trough in earnings growth caused by the patent cliff should be behind them by the end of the year. This is likely to lead to a re-rating and returns will be re-based from this point. The rerating has already begun. A decade ago, it was all about the ‘blockbuster drugs’ pipeline. Pharmaceuticals have been forced to adapt. They have been ensuring that sustainable growth can be achieved beyond ‘the c...