Fitch Ratings has affirmed Pfizer Inc.'s (Pfizer) 'AAA'
senior unsecured debt rating and 'F1+' short-term debt ratings. The
ratings apply to approximately $19.8 billion of debt. The Rating
Outlook remains Stable.
Pfizer's announcement of a definite merger agreement to purchase Vicuron Pharmaceuticals (Vicuron) for approximately $1.9 billion in cash will have no impact on the credit ratings of the company. Pfizer maintains superior liquidity through a very large cash balance and short-term investments of approximately $22 billion, a $12 billion commercial paper program, and $3 billion of unused lines of credit at the end of the first quarter of 2005. The small size of the acquisition will have no negative effect on the company's credit profile. The transaction requires approvals by regulatory authorities in a number of countries (including the U.S. and Europe).
The Vicuron acquisition adds two late-stage products, the once-weekly intravenous antibiotic, dalbavancin, and the novel antifungal, anidulafungin, to the industry's leading pharmaceutical late-stage R&D pipeline. Regulatory filings for the two products are currently under review at the FDA and in clinical development for other indications. Fitch favorably views the acquisitions given Pfizer's current presence in the intravenous antibiotic market with Zyvox and the antifungal market with Vfend and Diflucan. If successfully commercialized, revenues and earnings from the anti-infective products will help to mitigate the impact to the overall pharmaceutical portfolio from significant patent exclusivity losses in the intermediate term.
Pfizer faces a number of both industry-related and company-specific challenges in the intermediate term, most notably the replacement of revenues and earnings from patent expirations of key pharmaceutical products and the market withdrawal of Bextra and uncertainties upon the implementation of the Medicare Modernation Act on Jan. 1, 2006. However, Pfizer's credit profile is expected to remain consistent with the 'AAA' rating category supported by the following:
-- Solid growth of the company's branded drug portfolio, which includes several blockbuster pharmaceuticals, including Lipitor, Norvasc, Viagra, Xalatan, and Zyrtec;
-- The industry's leading late-stage R&D pipeline, supported by a commitment to submitting 20 new drug applications (NDAs) to the Food and Drug Administration (FDA) in the 2001 to 2006 timeframe;
-- The diversity of the company's revenue and earnings base;
-- A $4 billion restructuring plan that will serve to support margins in the intermediate term.
Pfizer is a global research-driven pharmaceutical products and services company that discovers, develops, manufactures, and markets a broad range of products for human and animal health, either directly or through licensing agreements. Pfizer operates through three divisions: Pharmaceutical, Consumer Healthcare, and Animal Health.
Fitch's rating definitions are available on the agency's public web site, www.fitchratings.com. Published ratings, criteria and methodologies, and relevant policies and procedures are also available from this site, at all times.
Pfizer's announcement of a definite merger agreement to purchase Vicuron Pharmaceuticals (Vicuron) for approximately $1.9 billion in cash will have no impact on the credit ratings of the company. Pfizer maintains superior liquidity through a very large cash balance and short-term investments of approximately $22 billion, a $12 billion commercial paper program, and $3 billion of unused lines of credit at the end of the first quarter of 2005. The small size of the acquisition will have no negative effect on the company's credit profile. The transaction requires approvals by regulatory authorities in a number of countries (including the U.S. and Europe).
The Vicuron acquisition adds two late-stage products, the once-weekly intravenous antibiotic, dalbavancin, and the novel antifungal, anidulafungin, to the industry's leading pharmaceutical late-stage R&D pipeline. Regulatory filings for the two products are currently under review at the FDA and in clinical development for other indications. Fitch favorably views the acquisitions given Pfizer's current presence in the intravenous antibiotic market with Zyvox and the antifungal market with Vfend and Diflucan. If successfully commercialized, revenues and earnings from the anti-infective products will help to mitigate the impact to the overall pharmaceutical portfolio from significant patent exclusivity losses in the intermediate term.
Pfizer faces a number of both industry-related and company-specific challenges in the intermediate term, most notably the replacement of revenues and earnings from patent expirations of key pharmaceutical products and the market withdrawal of Bextra and uncertainties upon the implementation of the Medicare Modernation Act on Jan. 1, 2006. However, Pfizer's credit profile is expected to remain consistent with the 'AAA' rating category supported by the following:
-- Solid growth of the company's branded drug portfolio, which includes several blockbuster pharmaceuticals, including Lipitor, Norvasc, Viagra, Xalatan, and Zyrtec;
-- The industry's leading late-stage R&D pipeline, supported by a commitment to submitting 20 new drug applications (NDAs) to the Food and Drug Administration (FDA) in the 2001 to 2006 timeframe;
-- The diversity of the company's revenue and earnings base;
-- A $4 billion restructuring plan that will serve to support margins in the intermediate term.
Pfizer is a global research-driven pharmaceutical products and services company that discovers, develops, manufactures, and markets a broad range of products for human and animal health, either directly or through licensing agreements. Pfizer operates through three divisions: Pharmaceutical, Consumer Healthcare, and Animal Health.
Fitch's rating definitions are available on the agency's public web site, www.fitchratings.com. Published ratings, criteria and methodologies, and relevant policies and procedures are also available from this site, at all times.
© 2005 Business Wire
