NEW YORK (AP) – Moody’s Investors Service raised its credit rating on Mylan Inc., saying it expects strong sales growth for the generic drugmaker.
Moody’s raised its rating to “Ba1” from “Ba2.” The new rating is still “junk” status, one notch below an investment grade rating.
The ratings agency said the Pittsburgh company occupies a strong position in the generic drug industry, and its sales should keep growing as more brand-name drugs lose patent protection, allowing Mylan to sell lower-cost versions.
The firm expects better sales of the EpiPen, a pre-filled syringe that is used to treat severe allergic reactions. The product is made by Pfizer, and Mylan markets EpiPen in the U.S.
Moody’s also says there is less risk of Mylan making expensive acquisitions funded by debt.
Ratings apply to about $5 billion in debt held by Mylan.
Earlier this month, Mylan raised its annual profit forecast to a range of between $2.45 and $2.55 per share from $2.30 to $2.50 per share. It also approved the repurchase of up to $500 million in stock.
Date: May 23, 2012
Source: Associated Press
