UBS has downgraded AstraZeneca as part of its latest review of the European pharmaceutical sector "Our key concern is the exposure of the company to US Medicare Part D reform, which slows our sales growth assumptions from 2025. "We see AstraZeneca's oral oncology portfolio as particularly exposed to the requirement for pharma to fund 20% of catastrophic cover from 2025, up from around 2%. "This forced effective price cut, coupled with likely increased PMB formulary pressures, means we are around 5% below consensus core earnings before interest and tax for 2025/26. "On the positive side, our view of probability-adjusted mid-stage pipeline means we are modestly above consensus by 2028/29." This information is only for educational purposes. These information does not contain investment advice or investment recommendation, or an offer or solicitation for a transaction in any financial instrument.