Research & Development World

  • R&D World Home
  • Topics
    • Aerospace
    • Automotive
    • Biotech
    • Careers
    • Chemistry
    • Environment
    • Energy
    • Life Science
    • Material Science
    • R&D Management
    • Physics
  • Technology
    • 3D Printing
    • A.I./Robotics
    • Software
    • Battery Technology
    • Controlled Environments
      • Cleanrooms
      • Graphene
      • Lasers
      • Regulations/Standards
      • Sensors
    • Imaging
    • Nanotechnology
    • Scientific Computing
      • Big Data
      • HPC/Supercomputing
      • Informatics
      • Security
    • Semiconductors
  • R&D Market Pulse
  • R&D 100
    • Call for Nominations: The 2025 R&D 100 Awards
    • R&D 100 Awards Event
    • R&D 100 Submissions
    • Winner Archive
    • Explore the 2024 R&D 100 award winners and finalists
  • Resources
    • Research Reports
    • Digital Issues
    • R&D Index
    • Subscribe
    • Video
    • Webinars
  • Global Funding Forecast
  • Top Labs
  • Advertise
  • SUBSCRIBE

Moody’s Gives Abbott Labs Negative Rating

By R&D Editors | March 12, 2010

NEW YORK (AP) – Moody’s Investors Service affirmed its ratings and negative outlook for Abbott Laboratories and warned of a potential downgrade, citing the company’s decision to buy Facet Biotech Corp. for $450 million.

On Tuesday, drug and medical products company Abbott announced the $27-per-share deal, which marked a 67 percent premium to Facet’s closing price of $16.21.

Moody’s affirmed Abbott’s ‘A1’, or “upper medium grade” senior unsecured and Prime-1 short-term ratings, while also affirming a “Negative” outlook. Abbott’s pursuit of additional buyouts or ongoing liquidity constraints could result in a downgrade, Moody’s said.

“Moody’s recognizes that Facet will offer additional pipeline products in the areas of multiple sclerosis and oncology. However, following Solvay and a series of other acquisitions, this transaction highlights the company’s continued strong appetite for acquisitions,” Moody’s said, in a statement. “Also, based on Facet’s recent stock price, this transaction appears richly priced.”

In December, Facet shareholders rejected a bid worth $17.50 per share from Biogen Idec Inc., which is a partner on the potential multiple sclerosis drug daclizumab.

In its deal, Abbott will gain that potential product along with potential cancer treatments.

Moody’s said the buyout will place additional stress on some of Abbott’s credit metrics. Also, cash coverage of debt is much weaker following the closing of the $6.2 billion buyout of Solvay’s pharmaceutical business in February.

Shares of Abbott, based in North Chicago, Ill., rose 26 cents to $55.06 in afternoon trading.

Meanwhile, shares of Facet, based in Redwood City, Calif., surged $10.83, or 67 percent, to reach $27.04, signaling that investors agree with the buyout value.

Date: March 11, 2010
Source: Associated Press

Related Articles Read More >

2025 R&D layoffs tracker: 83,543 and counting
Health-related innovation in Morocco highlighted by resident inventor patenting activity
ARPA-H funds $29M Ginkgo-led project to reshore pharma supply chains using wheat germ tech
DNA microscope offers new 3D view of organisms from the inside out
rd newsletter
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest info on technologies, trends, and strategies in Research & Development.
RD 25 Power Index

R&D World Digital Issues

Fall 2024 issue

Browse the most current issue of R&D World and back issues in an easy to use high quality format. Clip, share and download with the leading R&D magazine today.

Research & Development World
  • Subscribe to R&D World Magazine
  • Enews Sign Up
  • Contact Us
  • About Us
  • Drug Discovery & Development
  • Pharmaceutical Processing
  • Global Funding Forecast

Copyright © 2025 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy | Advertising | About Us

Search R&D World

  • R&D World Home
  • Topics
    • Aerospace
    • Automotive
    • Biotech
    • Careers
    • Chemistry
    • Environment
    • Energy
    • Life Science
    • Material Science
    • R&D Management
    • Physics
  • Technology
    • 3D Printing
    • A.I./Robotics
    • Software
    • Battery Technology
    • Controlled Environments
      • Cleanrooms
      • Graphene
      • Lasers
      • Regulations/Standards
      • Sensors
    • Imaging
    • Nanotechnology
    • Scientific Computing
      • Big Data
      • HPC/Supercomputing
      • Informatics
      • Security
    • Semiconductors
  • R&D Market Pulse
  • R&D 100
    • Call for Nominations: The 2025 R&D 100 Awards
    • R&D 100 Awards Event
    • R&D 100 Submissions
    • Winner Archive
    • Explore the 2024 R&D 100 award winners and finalists
  • Resources
    • Research Reports
    • Digital Issues
    • R&D Index
    • Subscribe
    • Video
    • Webinars
  • Global Funding Forecast
  • Top Labs
  • Advertise
  • SUBSCRIBE