Moody’s moves Grunenthal view to stable

Moody’s Ratings said it revised its outlook for Grunenthal Pharma GmbH & Co. KG and its subsidiary Grunenthal GmbH to stable from positive.

Concurrently, the agency affirmed the parent’s B1 corporate family rating, its B1-PD probability of default rating and the B1 rating on the subsidiary’s backed senior secured notes.

“While Grünenthal has performed solidly in 2023, increasing its revenue by 10% and reporting a leverage (Moody's-adjusted debt/EBITDA) of 3.2x, Moody's projects that its sales will decline in 2024-25 and its credit metrics deteriorate as the company faces increased generics competition on some highly-profitable drugs, and incurs costs for the phase 3 trials and launch preparation of RTX (resiniferatoxin), a drug currently studied for osteoarthritis knee pain,” the agency said in a press release.

Moody’s said it expects Grunenthal’s revenue to decline by 5%-6% annually in 2024-25 and that its EBITDA margin will weaken slightly to around 20%.

© 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.