Moody's downgrades Astellas

Moody's Investors Service said it downgraded Astellas Pharma Inc.'s issuer rating to A2 from A1. Moody's also changed the outlook to negative from rating under review.

This action concludes Moody's review for downgrade that was initiated on Dec. 6, following Astellas' announcement it would acquire Audentes Therapeutics, Inc. Astellas closed the $3 billion acquisition, financing it with debt and cash on hand.

“The downgrade reflects the erosion in Astellas' financial flexibility as a result of this acquisition. The company's product portfolio has been weakened by a wave of patent expiries over the last few years, and the debt-financed Audentes acquisition reflects the urgent need for Astellas to replenish its long-term product pipeline and raises the likelihood of future acquisitions and related debt financings,” the agency said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.