S&P Global Ratings assigned a BBB- issuer credit rating to Swiss drugmaker Vifor Pharma AG.
The agency said the rating is constrained by Vifor's small size and high product concentration, primarily due to its focus on therapies for chronic kidney disease. The narrow focus could expose the group to either increasing competition from new or alternative medicines, or to generics, S&P Global Ratings said.
However, the constraint is partially mitigated by the drugmaker's access to the largest dialysis clinics network in the U.S. through a joint venture with Fresenius Medical Care AG & Co. KGaA, and by Vifor's leading market position in the intravenous iron market.
The high product concentration is also offset by the company's geographical split, as it generates over 50% of its sales in the U.S., about 40% in the EU and 10% in the rest of the world.
Meanwhile, S&P Global Ratings also adopted a stable outlook on the rating, reflecting the agency's assumptions that the company should be able to sustain positive underlying revenue growth and improve operating margins above 30%. The assumption reflects Vifor's ability to grow its newly launched products and to expand to other geographies and indications.
Ratings also assumes that the company will maintain S&P Global Ratings-adjusted leverage sustainably below 2x while managing its acquisition spending.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.
