War in Ukraine Unlikely to Significantly Affect Big Biopharma Valuations

We don’t expect the Big Biopharma industry will be significantly affected by the war in Ukraine. With most large pharmaceutical and biotechnology firms generating less than 1% of sales from Ukraine and Russia, we don’t expect the conflict will materially affect valuations or moats in the industry. Additionally, we expect sanctions will be less impactful for drugs, as critical-care medical products are less likely to be limited by sanctions. While not all biopharma firms have provided context on the impact of the war in Ukraine, the ones that have provided insights have largely expressed little impact to their overall businesses. Johnson & Johnson, Eli Lilly, Merck, and AbbVie have stated that sales in Russia and Ukraine represent less than 1% of total sales.