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. Since then however Lynparza and Rubraca have both been approved for the same indication. Shares in GSK fell by more than 5% on Monday morning after the news was announced. GSK disputed the analysis, saying purchasing Tesaro had strengthened its cancer franchise. It has also divested several consumer healthcare nutrition products to Unilever, 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. Shares in GSK fell by more than 5% on Monday morning after the news was announced. GSK disputed the analysis, saying purchasing Tesaro had strengthened its cancer franchise. It has also divested several consumer healthcare nutrition products to Unilever, generating about $3.1bn.