Investors look to Q2 results for E.U. impact

With European governments cutting prices left and right, investors are worried. Just how worried they are--and should be--will grow clearer over the next few weeks as Big Pharma starts reporting Q2 results.

Swiss-based Novartis kicks off this earnings wave on Thursday, Reuters points out, but it's not just European companies that stand to suffer. Analysts say they'll be listening carefully as pharma management explains Q2 numbers and discusses the outlook for the rest of the year.

Deutsche Bank analysts tell Reuters that they're expecting caution from European pharma managers, but no earnings-outlook downgrades. JP Morgan analysts, however, say they're reducing their sales and earnings forecasts for leading U.S. drugmakers because of price cuts and weakness in the euro. The impact next year could be even worse, Reuters reports. 

- see the Reuters analysis