Fitch: Key Specialty Drug Developers May Overcome Operating Challenges through Consolidation

CHICAGO--()--Link to Fitch Ratings' Report: Specialty Pharmaceuticals Snapshot - Key High Yield Consolidator Trends and Targets
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=706298

Fitch Ratings sees sustained consolidation in the specialty pharmaceutical sector as small market players try to effectively compete with larger market participants and favorably negotiate reimbursement with commercial and government payers.

Merger and acquisitions among small drug producers is the most common way specialty pharmaceutical manufacturers build scale. On occasion, small specialty drug firms take advantage of major consolidation between larger drug firms by purchasing divested marketed products required by antitrust authorities.

In the special report 'Specialty Pharmaceuticals Snapshot: Key High Yield Consolidator Trends and Targets', Fitch Ratings examined the specialty pharmaceutical segment for corporate consolidation opportunities that could address current needs of three key high-yield drug makers -- Valeant Pharmaceuticals International Inc., Endo Health Solutions Inc., and Warner Chilcott Plc.

The three specialty pharmaceutical companies have different business development approaches, yet all potentially moderated by debt incurrence covenants in secured bank facilities.

The full Specialty Pharmaceuticals Snapshot is available at 'www.fitchratings.com.'

Additional information is available at 'www.fitchratings.com'.

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Contacts

Fitch Ratings
Michael Zbinovec
Senior Director
Fitch Ratings, Inc.
+1 312 368-3164
Michael.Zbinovec@fitchratings.com
or
Media Relations:
Brian Bertsch, New York, +1 212-908-0549
Email: brian.bertsch@fitchratings.com

Contacts

Fitch Ratings
Michael Zbinovec
Senior Director
Fitch Ratings, Inc.
+1 312 368-3164
Michael.Zbinovec@fitchratings.com
or
Media Relations:
Brian Bertsch, New York, +1 212-908-0549
Email: brian.bertsch@fitchratings.com