Moody's: Amgen outlook positive

Moody's Investors Service said it revised the outlook of Amgen Inc. to positive from stable and affirmed its ratings including the A3 senior unsecured debt rating and Prime-2 short-term rating.

The outlook change follows the recent U.S. and European approvals of Prolia (denosumab) for the treatment of post-menopausal osteoporosis. The agency said the approval significantly improves Amgen's longer-term growth prospects and creates upward rating pressure. Other factors reflected in the outlook revision include favorable operating performance, strong free cash flow and rising cash and investments.

The A3 rating continues to reflect Amgen's strong profit margins and cash flow, excellent liquidity and solid operating performance even in the face of competitive pressures and challenges in the ESA franchise, Moody's said.

Risk factors reflected in the rating include high product concentration risk, intensifying competitive threats, slower growth prospects for most core products, U.S. health-care reform costs and the longer-term threat of biosimilar products in the United States, the agency said.

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