Investing in the pharmaceuticals industry carries 50 per cent more risks than in the overall S&P 500, because Big Pharma's management of operational risks has lagged behind dramatic business and reputational shifts, a new report says.

Drugmakers' comparative riskiness, influenced by factors such as price controls, litigation, sales practices, restructuring and product safety, underscore investor concern that the pharmaceutical sector is no longer a defensive investment. For decades, investment in drugs companies was considered safe in all economic climates, because people always fall ill.