Articles List

Impact Of Teva's Actavis Generics Acquisition Declining

The Actavis Generics acquisition continues to define Teva Pharmaceutical Industries' recent sales improvements, but whilst the Q117 results represent a marked improvement over the prior year period, compared to Q416, there is a sharp downturn suggesting that the boost to sales is ending. Nonetheless, Teva maintains its confidence in its revenues for the remainder of the year, and the generic segment is still strong. Declining Copaxone sales provide evidence that this drug is finally succumbing to generic competition.

New Cabinet Reinforces Likelihood Of An Election Delay

President Joseph Kabila announced a new cabinet on May 9 for Democratic Republic of Congo, naming a list of more than 50 ministers and deputy ministers. The composition of the new cabinet further reinforces our view that Kabila will continue delaying the election, largely ignoring an agreement reached with opposition representatives in December 2016.

Project Changes Prompt Construction Forecast Revision

Increased activity in Mozambique's transport infrastructure project pipeline has prompted an upward revision to our construction growth forecast for 2017 and 2018, while delays to the start up of the Coral LNG project have pushed back our anticipation for a spike in industry growth to 2023 rather than in 2022. Overall the 10-year growth outlook for the construction market is brighter, with average annual expansion now forecast at 7.6% in real terms, from 7.0% previously.

Baxalta Acquisition Bearing Fruit For Shire

Strong organic growth from Shire's legacy products and the contribution from Baxalta's product sales expedited a solid commercial performance in Q117. Shire remains on track to deliver its impressive sales targets for 2017, while its priorities are sharply focused on reducing its current acquisition-related debt load. Shire remains a leader in the rare diseases space, and is confident that careful management of the dry-eye disease treatment Xiidra will result in it becoming a future blockbuster and key long-term growth driver for the company.

Apple: Still Strong, But Should Not Get Complacent

With cash reserves of over USD250bn, and the most successful consumer product of all time, Apple's fundamentals remain strong. The launch of the next iPhone, 10 years after the original, will give a boost to revenues as more consumers upgrade, but the company must look to both move away from the cyclical nature of its results and its reliance on the iPhone. Creating more recurrent revenue streams, as opposed to launching a new essential product, is the most realistic strategy, which is why Apple has focused on services, but the company will still struggle with the expectation that it needs to replicate the iPhone's success.

US Support Of Syrian Kurds Positive To Defeat IS

The US's decision to arm the Kurds in Syria will result in IS being ousted from Raqqa over the coming months. Nonetheless, defeating IS will be no panacea for the ongoing civil war in Syria, and we maintain our view that reaching any peace deal in the country will be a multi-year process.

Data Services To Underpin Telecoms Growth

Data services will underpin growth in the Iranian telecoms market, as highlighted by the recent deals involving MTN and Iranian Net, and between TCI and Huawei. While consumer demand for data services will remain strong, opportunities for digitisation in the enterprise sector should not be discounted.

Core Growth Drivers Deliver Impressive Sales Returns For Bayer

Bayer's better-than-expected Q117 financial results bode well for the company's outlook for 2017. Growth was largely driven by consistently strong business developments within the pharmaceuticals division, as well as significant increases in sales and earnings of Covestro. Key for Bayer during the remainder of 2017 will be its ability to successfully reorganise its business structure amidst the Monsanto acquisition, without compromising the company's core growth drivers.

Government Cuts Will Weigh On Growth

The Republic of Congo will see tepid growth in 2017 as the economy recovers from a contraction. Although the oil sector is set to strengthen, consumption will remain weak as the government pursues fiscal consolidation.



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