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Healthcare & Pharma

Global Home > Healthcare & Pharma
WhyForum

Why Patient Consumerism Will Further Define U.S. Not-For-Profit Healthcare

“Consumerism” is no longer a new buzzword for not-for-profit healthcare but rather a concept that will radically overhaul healthcare delivery over the longer term.

rating action

Fitch Rates Bristol-Myers Squibb's Notes Offering 'A-'; Rating Watch Negative

The Rating Watch Negative reflects the fact that Bristol's debt leverage could remain above the 2.0x that Fitch considers consistent with BMY's current 'A-' rating for more than 24 months after the planned acquisition of Celgene. The Rating Watch will be resolved closer to the completion of the acquisition with the timing dependent upon garnering regulatory approvals.

US Drug Prices Unlikely to Hurt Insurer/Supply Chain Margins

Changes currently being proposed concerning prescription drug rebates and pricing under Medicare/Medicaid are not expected to materially pressure margins or profits over the long term for US health insurers, drug companies, distributors and PBMs (pharmacy benefit managers).

GE BioPharma Sale Positive for Deleveraging; Concerns Remain

The divestiture will also provide flexibility around the structure and timing of GE's previously stated plan to dispose of its Healthcare business, the remainder of which continues to provide the company meaningful revenue, earnings and cash flow.

Rating Criteria & Sector Companions

Master methodology covers financial adjustments and corporate structures. More details appear in sector-specific companions:

Pricing Offsets Upbeat Secular Trends in Global Pharma

We believe that the industry is in a better position than during the most recent industry patent cliff in 2012. Access to health care is expanding globally, life expectancy is rising and diagnostics of chronic and lifestyle diseases are improving. Innovation is a key long-term growth driver. 

Adverse US Appeal Outcomes Could Impact Bayer's Rating

The outcomes of post-trial motions and potential subsequent appeal processes in various court cases will be key in determining the impact of the US glyphosate-related litigation on Bayer's 'A-'/Stable rating. These outcomes are unlikely to be known before well into 2019. Unfavourable outcomes, leading to significant payouts, which is currently not our central rating case, may put downward pressure on the rating. 

Recent Healthcare Outlier Downgrades Not Reflective of Wider Trend

Fitch Ratings does not consider two recent multi-notch downgrades affecting healthcare issuers in South Carolina, driven by extraordinarily large net pension liabilities, harbingers of wide-ranging rating actions in the healthcare sector or other sectors, including higher education.

Rising Receivables Pressuring Chinese Pharma Distributors

Chinese pharmaceutical distributors are facing increasingly long receivables days, reflecting lengthening delays in payments from public hospitals. This adds to their working-capital needs, with a negative impact on distributors' liquidity, profitability and leverage.

rating action

GSK's Outlook Revised to Negative; Affirms at 'A'

The revision of the Outlook follows the announcement by GSK that it intends to buy out the 36.5% stake of Novartis in their consumer health JV for GBP9.2 billion in cash. The deal is expected to close by end-2Q18. 

Medicaid Work Rules Compound Hospitals' Volume Headwinds

For-profit general acute care hospitals may face another volume headwind after the Center for Medicare and Medicaid Services (CMS) provided a Section 1115 waiver to Kentucky on Jan. 12, allowing it to add additional eligibility requirements (i.e. work requirements) for recipients to qualify for Medicaid coverage. 

Credit Hotspot: Brexit

Latest: Brexit Impact Gradually Mounting for UK Corporates

Contacts

Business ENQUIRIES

Jill Zelter

Global Group Head & North America

Business ENQUIRIES

Anjali Sharma

Europe, Middle East, Africa

Business ENQUIRIES

Kathleen Fuentes Holtzman

Latin America

Business ENQUIRIES

Sing Chan Ng

Asia-Pacific

Banker ENQUIRIES

Matthew de Mendonca

North America

Banker ENQUIRIES

Sean Costello

Europe, Middle East, Africa

Investor ENQUIRIES

Aymeric Poizot

Global Group Head & Europe, Middle East, Africa

Investor ENQUIRIES

Ian Rasmussen

North America

Investor ENQUIRIES

Frank Laurents

Latin America

INVESTOR ENQUIRIES

Helen Wong

Asia-Pacific

ANALYTICAL ENQUIRIES

Megan Neuburger

North America

ANALYTICAL ENQUIRIES

Joe Bormann

Latin America

ANALYTICAL ENQUIRIES

Pablo Mazzini

Europe, Middle East, Africa

ANALYTICAL ENQUIRIES

Kalai Pillay

North Asia

ANALYTICAL ENQUIRIES

Vicky Melbourne

South Asia

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