In an industry coverage note last week, Kenanga Investment Bank Bhd said anecdotal evidence suggests the share price rally of rubber glove makers was led largely by massive price-earnings (PE) ratio expansion as earnings growth has been pedestrian over the past eight quarters. Its analysis suggests the strong surge in share prices of rubber glove stocks was mainly due to inflation in the PE multiple and not so much on earnings growth.
On January 3rd, 2019, the MHRA published guidelines for the situation of a no-deal Brexit. If no agreement is reached, the UK may decide to leave the EU without any deal. Then the UK will become, from the perspective of the EU, a "third country," Imports from third countries are captured in EU rules, but for goods moving from the EU to the UK these rules currently do not exist. The same goes for rules for non-EU manufacturers that want to place devices on the UK market. Therefore these MHRA guidelines are well appreciated, although the time for preparations is short.
Brexit-related change will define the European pharmaceutical and healthcare sector in 2019, both in terms of how drug products are regulated and how they are marketed. But, while Brexit is certain to impact the development, manufacture and sale of drugs, the ongoing lack of clarity on the future relationship between the UK and EU makes gauging the precise impact very difficult. The following predictions for 2019 are based on those certainties that are available at the time of going to press.
The government may include the end-of-life vehicle (ELV) mechanism under the next automotive policy or Malaysia Automotive Policy (MAP). According to a source close to the development, despite the Ministry of Transport's (MoT) decision to shelve ELV implementation in June last year, the government is still studying the policy and its viability in Malaysia.