BMI View: The fourth quarter of 2012 brought positive revenue growth for large domestic pharmaceutical firms in South Korea, the first positive result following many erratic price cuts that had been instituted since 2011. We highlight a slow positive change in sentiment in the sector given the lack of government intervention in price regulation as well as the companies’ ability and intention to diversify beyond generic drugs. A downside risk to our view is the potential increase in welfare spending, a campaign issue for the newly inaugurated president, Park Geun-hye. Any escalation in healthcare expenditure is likely to trigger pharmaceutical …
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