MedWatch

Raw materials price spikes will prove costly for the life science industry

Companies such as Coloplast, Novo Nordisk, Ambu and Lundbeck will end up paying for the increasing costs of raw materials, predicts the head of equity research at Carnegie Investment Bank.

Photo: Coloplast / PR

It will to be difficult for the life science industry to pass the rising raw material bill down the line to users as government purchasers are less willing to renegotiate new prices, says Head of Equity Research at Carnegie Investment Bank Niels Granholm-Leth, as reported by Danish business daily Børsen.

"Prices are often decided by various governmental discount programs that aren't regulated often, and so healthcare companies can be hit by falling margins in a period going forward," Granholm-Leth tells Børsen.

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