Moody’s expects global pharmaceuticals to be stable in 2017, as cost pressures neutralize gains from rising demand, and modest price increases in U.S. offset single-digit declines in rest of the world and despite growing anger over increasing drug costs. The outlook for the medical device industry and for-profit hotel chains was also rated stable.
Healthcare will account for a larger share of GDP in most countries, as demographics, including aging populations, continue to drive rising demand for pharmaceuticals, notably in emerging markets. However, the growth is creating severe budgetary pressures in most parts of the world, and pricing scrutiny in the U.S. creates political risks.
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