MIKE MITCHELL | SEYMOUR PIERCE
Fundamentally the position of the business, which is pharma-led, means it’s very exposed to increasing regulatory hurdles. The results continue to highlight where the business is exposed, and I don’t believe that the company’s research and development focuses mitigate the risk.
JEREMY BATSTONE-CARR | CHARLES STANLEY
In our view the results have emerged very much in line with what we and the market should have been expecting. Yes, there are concerns regarding the looming off-patent challenge but that is surely reflected in the shares’ already bargain basement rating.
SAVVAS NEOPHYTOU | PANMURE GORDON
There are two parts that the market has reacted to: the cost margin erosion has declined by 390bp year-on-year, though if you take into account exceptionals it’s more like 50bp. Secondly, is the fall in research and development spending growth, but this doesn’t impact much on the investment thesis.