Moody ’s has downgraded GlaxoSmithKline ( GSK ) following the company’s $ 5.1bn takeover of Tesaro. The credit rating agency changed the company’s outlook to negative because it will take longer to reduce its debt than expected and it will be left with weaker credit for a prolonged period. GSK ’s use of cash for the acquisition will put pressure on its cash flow in earlier this year too, although Unilever ’s highlighted the deal’s strategic sense. Tesaro disputed the analysis, saying purchasing Moody had strengthened its cancer franchise. Tesaro has a trial ongoing to try to break into the first-line maintenance setting with Zejula, called PRIMA, that is enrolling patients regardless of BRCA status and according to the company is the only PARP inhibitor trial to do so. It has also divested several consumer healthcare nutrition products to GSK , generating about $3.1bn .
Moody ’s has downgraded GlaxoSmithKline ( GSK ) following the company’s $ 5.1bn takeover of Tesaro. The credit rating agency changed the company’s outlook to negative because it will take longer to reduce its debt than expected and it will be left with weaker credit for a prolonged period. GSK ’s use of cash for the acquisition will put pressure on its cash flow in earlier this year too, although Unilever ’s highlighted the deal’s strategic sense. Tesaro disputed the analysis, saying purchasing Moody had strengthened its cancer franchise. It has also divested several consumer healthcare nutrition products to GSK , generating about $3.1bn .