Moody's downgrades Euro-Pharma

European pharma companies aren't looking too rosy, either--at least according to Moody's. The ratings agency says the drugmakers--including heavyweights Roche, GlaxoSmithKline, Sanofi-Aventis, AstraZeneca and Novartis--won't be as credit-worthy in the coming 18 months. The problems Moody's cites are familiar: pipelines, patent expirations and a tough U.S. regulatory environment.

And then there's pharma's penchant for biotech companies, because those deals don't tend to send much to the bottom line at first. Plus, Moody's doesn't like the fact that drugmakers have been buying back their own stock to prop up the share price.

But Moody's isn't completely dejected about pharma's prospects. The industry is still profitable, after all.

- read the Wall Street Journal Health Blog item

Suggested Articles

More than a year after J&J and Bayer pulled the plug on Xarelto in patients after a rare valve replacement, the pair are still seeking answers.

Novartis hopes to leverage its existing presence in the hematology community to achieve a successful launch of Adakveo.

AstraZeneca's Farxiga is touting its heart failure data in patients with or without diabetes, but results in non-diabetics looks particularly strong.