Fitch: Global Pharma M&A Risks Rise As Firms Seek Blockbusters

April 2, 2015 8:14 AM

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(The following statement was released by the rating agency) LONDON, April 02 (Fitch) A race to find the next blockbuster drug, combined with the availability of cheap financing, is leading to riskier M&A activity that in the long-run could weaken credit profiles in the pharmaceutical sector, Fitch Ratings says.

The acceleration in deal activity in the first few months of 2015 reinforces our negative rating outlook on the sector despite its positive fundamentals. As large pharma companies have struggled with R&D costs and productivity, the biotech sector has become an increasingly important source of new dr...

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