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ZTS - Zoetis Inc News Story

$130.77 0.7  0.5%

Last Trade - 6:35pm

Sector
Healthcare
Size
Large Cap
Market Cap £50.73bn
Enterprise Value £54.43bn
Revenue £5.20bn
Position in Universe 144th / 6360

BUZZ-Pharma firms may benefit from low interest rates due to coronavirus - analyst

Wed 18th March, 2020 5:16pm
** SunTrust Robinson Humphrey does not see a near-term debt
crisis for drugmakers and says some companies may be able to
refinance at lower rates than they otherwise would have once a
debt-financing window opens due to the coronavirus
    ** Stocks with large debt loads have been hit particularly
hard during weeks of market weakness amid the outbreak,
brokerage says
    ** Says Amneal  AMRX.N , Bausch Health  BHC.TO , Collegium
Pharma  COLL.O , Endo  ENDP.O , Lannett  LCI.N , and Teva Pharma
 TEVA.TA  are highly levered
    ** Jazz Pharma  JAZZ.O  and Zoetis  ZTS.N  are in the
strongest position in terms of total debt, leverage, and the
timing of maturities given their solid balance sheets and cash
flow - SunTrust
    ** Brokerage says reducing debt has been a priority for most
cos that levered up in recent years to fund acquisitions
    ** Assuming debt markets are temporarily closed, brokerage
does not see significant risk for BHC, ENDP, and TEVA as they
have already pushed out material maturities to 2025, 2024, and
2023, respectively
    ** Says the lower interest rate environment would benefit
AMRX, ENDP, LCI, and Mallinckrodt  MNK.N  the most
    ** Brokerage's estimates do not factor in potential opioid
or generic liability or business impact from the coronavirus 
    

 (Reporting by Saumya Sibi Joseph in Bengaluru)
 ((saumya.joseph@thomsonreuters.com))
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