Big Pharma Could Get Boost From Promising New Drugs in 2005, S&P Says

Although the pharmaceutical industry has been criticized in recent years for its lack of productivity on the R&D front, there are a number of promising products -- either newly approved or soon-to-be-approved -- that could give big pharma firms a boost in 2005 and beyond, according to a new research report from Standard & Poor's (S&P).

"The past year, 2004, has not exactly been a banner year for the pharmaceutical industry," S&P analyst Arthur Wong writes. "The industry's continued woes have been reflected in the major company downgrades that have occurred in the past year, such as Merck, Bristol-Myers Squibb and Schering-Plough. What is more troubling is that several of these challenges, such as major patent expirations, relatively light near-term product pipelines and product liability litigation, are all long-term in nature and will weigh on Big Pharma's performance, as well as company credit ratings, for the next several years."

However, Wong says the tide could turn for some firms thanks to several "very promising product candidates that may form the core of major pharmaceuticals companies' future drug portfolios."

The S&P report highlights 10 of the most-watched drug candidates, all of which the ratings firm expects to eventually generate more than $1 billion in annual sales. Among the drugs included in the report are Vytorin (simvastatin/ezetimibe), Gardasil (human papilloma virus vaccine), Muraglitazar, Lunesta (eszopiclone), Indiplon, abatacept, Exubera (inhaled insulin), Cymbalata (duloxetine HCl), Lyrica (pregablin) and Tysabri (natalizumab).