S&P lifts Biogen Idec from junk

Standard & Poor's said it raised Biogen Idec Inc.'s corporate credit and senior unsecured debt ratings to BBB from BB+. The outlook is stable.

S&P said the upgrade reflects the continued strong performance of a key product, Avonex, in the face of newer competition, exceptional growth in a co-promoted product and the financial capacity of a now essentially debt-free balance sheet. Also, concerns that the marketing withdrawal of the company's promising multiple sclerosis drug Tysabri would be disruptive to management and operations have not been borne out.

The ratings on Biogen Idec reflect the company's leading positions in the treatment of cancer and multiple sclerosis, as well as its strong financial profile, the agency said. These factors are partially offset by the company's high revenue dependence on only two drugs and its relatively thin near-term product pipeline.

S&P said the company had roughly $2 billion in cash and investments at Dec. 31 and faces no significant debt maturities over the next several years.

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