Moody's: Amgen view negative

Moody's Investors Service said it affirmed the ratings of Amgen Inc., including the Baa1 senior unsecured long-term rating and the Prime-2 short-term rating.

The outlook was changed to negative from stable.

These actions follow the news that Amgen will acquire Onyx Pharmaceuticals, Inc. for about $9.7 billion in enterprise value.

"The acquisition of Onyx will provide Amgen with a new platform in hematological cancers and growth in Kyprolis will help Amgen offset growth challenges in its mature franchises," Moody's senior vice president Michael Levesque said in a news release.

"Nonetheless, the acquisition will leave Amgen weakly positioned in the rating category because of higher financial leverage and constraints on domestic cash flow."

© 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.