European Pharma: Growth Picks Up as Comparison Base Gets Easier

We predict faster growth in sector revenue and core EPS in 2024, with a 6.3% and 6.2% increase, respectively. We expect diabetes and obesity drugs to be the major drivers of revenue growth, along with strong launches of respiratory syncytial virus (RSV) vaccines. Margin improvements are forecasted for most companies in 2024 due to efficiency measures and better product mix. We prefer AstraZeneca (AZN), GSK, and Novo Nordisk (NOVOB) for growth. We are cautious about Bayer (BAYN) and Roche (ROG).