The market rediscovers pharmaceuticals, Diasorin and Amplifon stand out in Milan

(Il Sole 24 Ore Radiocor) - The market rediscovers the pharmaceutical sector after the weakness of the last period and at Piazza Affari Diasorin, Recordati and Amplifon lead the Ftse Mib. The Euro Stoxx HealthCare outperforms all the others with a leap of nearly three percentage points (in the morning of the first session of October). Among the stocks, Novo Nordisk, AstraZeneca, Novartis, Sanofi Aventis, Roche, Merck and Bayer advanced.

After a weak September, the industry benefited from the easing of tension in the sector, thanks in part to US President Donald Trump's announcement of an agreement with Pfizer that will offer discounts on prescription drugs sold in the US. In addition, Pfizer will sell some of its most popular drugs to all consumers at discounted prices, which will be available for sale online on a site run by the federal government, called TrumpRx. Gabriel Debach, market analyst at eToro, sees the sector's moment as 'a glass half full. The market,' he says, 'seems to be pricing not the list price, but the expected value of cash flow after rule and channel changes. The announcement of TrumpRx and deals with big pharma (although currently only with Pfizer) reduces risk, reallocates margins, increases visibility. The result: premium to the industry, despite headlines about lower prices. A price cap,' he concludes, 'does not necessarily equate to a cut in profits.

The market therefore seems to be putting aside uncertainties on the subject of tariffs, with those on European products confirmed at 15%, after the nervousness over Trump's threats a few days ago about 100% tariffs. The European healthcare sector, Equita analysts point out, posted an average decline of -3% last month, in line with the med-tech sector. The underperformance was driven by negative earnings revisions (due to US tariffs and weak consumer confidence) and a de-rating of multiples, linked to declining global policy support for the sector (European focus on defence, Medicare/Medicaid cuts in the US, volume-based sourcing in China). "We believe," says Equita, "that the recent underperformance mainly reflects general caution on the sector, rather than specific issues, and thatthe stocks are little impacted by US tariffs and able to achieve 2025 guidance.

Finally, adding to the buzz about Diasorin is Carlo Rosa's interview with Corsera, in which the CEO confirms that Diasorin will invest €500m over five years, between the US and Europe, after the €350m of the past five years. Rosa then pointed out that tariffs and geopolitical tensions fuel

uncertainty, but do not change the group's strategy. For Intermonte, 'the indications on investments and those on margins are consistent with those provided in the industrial plan and with our estimates'. On tariffs, 'the company expects a limited and manageable impact on ebitda quantifiable at around EUR 6-7 mln this year (we estimate around EUR 10 mln annualised impact as an indication for next year)'. Intermonte expects 'dynamics not too different from those seen in the second quarter for the company's third quarter, with a recovery in the MolecularDX segment offset by a slowdown in LTG (Licensed technologies group). Intermonte revises its target price on the stock to €89 from €103), "to more appropriately reflect the recent de-rating of the sector". The neutral recommendation is confirmed, "waiting for more concrete evidence of a significant acceleration in MolecularDX before taking a more constructive approach on the stock".