Moody's takes negative Pfizer outlook |
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Fri, 19 Oct 2007 20:39
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NEW YORK (AP) - Moody's Investors Service affirmed its negative outlook Friday for drug developer Pfizer Inc.'s debt, citing the company's $2.8 billion writeoff for Exubera.On Friday, Pfizer said its third-quarter profit plunged, mainly on a $2.8 billion charge to phase out Exubera, an inhalable diabetes treatment. Moody's said that was a key factor in shifting to a negative outlook from a stable outlook. Other factors include pressure on Lipitor sales and the approaching loss of key patents. Those patent losses mean more generic competition cutting into revenue.Moody's affirmed its Aa1, an investment-grade designation, and Prime-1, or high-grade quality, ratings for senior notes, Eurobonds, revolving credit and issuer ratings.'Despite Pfizer's excellent balance sheet, Moody's negative outlook reflects challenges Pfizer faces in improving shareholder value as it heads into the difficult patent expiration period between 2010 and 2012,' said Moody's senior vice president, Michael Levesque.Shares of Pfizer fell 49 cents to $24.06 in afternoon trading.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Pfizer's outlook cut to negative after a writedown of Exubera assets - Moody's 