In this report, S&P Global Ratings lists its universe of 70 rated global pharmaceutical companies from strongest to weakest. We rank the companies by rating, then by outlook, business risk profile, financial risk profile, and liquidity assessment. We then list companies in alphabetical order if they are not distinguished by these factors.
In line with our corporate rating methodology, the final rating may differ from the (preliminary) anchor score where we have applied one or more modifiers or where government, group, or rating-above-the-sovereign considerations apply. These arise about 25% of the time but only rarely influence the rating by more than one notch. We've noted the anchor and active modifiers of each company for informational purposes only.
For our sector outlook and related reports, please refer to the Related Research section at the end of this article.
The table and charts in this publication provide an overview of the 70 entities we rate in the pharmaceutical industry. This includes companies focusing on branded drugs (32; representing about 46% of the companies), generic drugs (23; 33%), contract development and manufacturing (16;23%), and animal health (4; 6%).
Table 1
List of global pharmaceutical companies: Strongest to weakest | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Company | Sub-Sector | Corporate Rating | Outlook | Business Risk Profile | Financial Risk Profile | Liquidity | Anchor | SACP | Modifier | |||||||||||
Johnson & Johnson |
Branded | AAA | Negative | Excellent | Minimal | Strong (0) | aaa | aaa | ||||||||||||
Roche Holding AG |
Branded | AA | Stable | Excellent | Minimal | Strong (0) | aa+ | aa | FP (-1) | |||||||||||
Sanofi |
Branded | AA | Stable | Excellent | Modest | Strong (0) | aa | aa | ||||||||||||
Novartis AG |
Branded | AA- | Stable | Excellent | Modest | Strong (0) | aa | aa- | FP (-1) | |||||||||||
Novo Nordisk A/S |
Branded | AA- | Stable | Strong | Minimal | Strong (0) | aa- | aa- | ||||||||||||
AstraZeneca PLC |
Branded | A+ | Stable | Excellent | Modest | Adequate (0) | aa | a+ | FP (-1), CRA (-1) | |||||||||||
Eli Lilly & Co. |
Branded | A+ | Stable | Strong | Modest | Strong (0) | a+ | a+ | ||||||||||||
Merck & Co. Inc. |
Branded | A+ | Stable | Strong | Modest | Strong (0) | a+ | a+ | ||||||||||||
GSK PLC |
Branded | A | Stable | Excellent | Intermediate | Strong (0) | a | a | ||||||||||||
Pfizer Inc. |
Branded | A | Stable | Excellent | Intermediate | Strong (0) | a | a | ||||||||||||
Merck KGaA |
Branded | A | Stable | Strong | Modest | Strong (0) | a+ | a | FP (-2), Diversification (+1) | |||||||||||
Bristol-Myers Squibb Co. |
Branded | A | Stable | Strong | Intermediate | Strong (0) | a- | a | CRA (+1) | |||||||||||
CSL Ltd. |
Branded | A- | Stable | Strong | Modest | Strong (0) | a | a- | CRA (-1) | |||||||||||
AbbVie Inc. |
Branded | A- | Stable | Strong | Intermediate | Adequate (0) | a- | a- | ||||||||||||
Gilead Sciences Inc. |
Branded | BBB+ | Positive | Satisfactory | Modest | Strong (0) | bbb+ | bbb+ | ||||||||||||
Takeda Pharmaceutical Co. Ltd. |
Branded | BBB+ | Stable | Strong | Intermediate | Strong (0) | bbb+ | bbb+ | ||||||||||||
Lonza Group AG |
CDMO | BBB+ | Stable | Strong | Intermediate | Adequate (0) | bbb+ | bbb+ | ||||||||||||
Regeneron Pharmaceuticals Inc. |
Branded | BBB+ | Stable | Satisfactory | Minimal | Strong (0) | a- | bbb+ | CRA (-1) | |||||||||||
Biogen Inc. |
Branded | BBB+ | Stable | Satisfactory | Modest | Strong (0) | bbb+ | bbb+ | ||||||||||||
Amgen Inc. |
Branded | BBB+ | Negative | Strong | Significant | Strong (0) | bbb | bbb+ | CRA (+1) | |||||||||||
Bayer AG |
Branded | BBB | Stable | Strong | Significant | Adequate (0) | bbb | bbb | ||||||||||||
Zoetis Inc. |
Animal Health | BBB | Stable | Satisfactory | Modest | Strong (0) | bbb+ | bbb | FP (-1) | |||||||||||
Sandoz Group AG |
Generic | BBB | Stable | Satisfactory | Intermediate | Adequate (0) | bbb | bbb | ||||||||||||
Royalty Pharma plc |
Branded | BBB- | Stable | Satisfactory | Significant | Adequate (0) | bbb- | bbb- | ||||||||||||
Hikma Pharmaceuticals PLC |
Generic | BBB- | Stable | Fair | Minimal | Adequate (0) | bbb | bbb- | FP (-1) | |||||||||||
H. Lundbeck A/S |
Branded | BBB- | Stable | Fair | Modest | Strong (0) | bbb- | bbb- | ||||||||||||
Viatris Inc. |
Generic | BBB- | Negative | Satisfactory | Significant | Strong (0) | bbb- | bbb- | ||||||||||||
Huvepharma EOOD |
Animal Health | BB+ | Stable | Fair | Intermediate | Adequate (0) | bb+ | bb+ | ||||||||||||
Hypera S.A. |
Generic | BB+ | Stable | Fair | Intermediate | Adequate (0) | bb+ | bb+ | ||||||||||||
Glenmark Pharmaceuticals Ltd. |
Generic | BB+ | Stable | Weak | Modest | Adequate (0) | bb+ | bb+ | ||||||||||||
Teva Pharmaceutical Industries Ltd. |
Generic | BB | Positive | Satisfactory | Aggressive | Adequate (0) | bb | bb | ||||||||||||
Jazz Pharmaceuticals plc |
Branded | BB | Stable | Fair | Intermediate | Adequate (0) | bb+ | bb | FP (-1) | |||||||||||
Biocon Biologics Ltd. |
Generic | BB | Stable | Fair | Aggressive | Adequate (0) | bb- | bb | FP (+1) | |||||||||||
Alkermes PLC |
Branded | BB | Stable | Weak | Intermediate | Adequate (0) | bb | bb | ||||||||||||
Almirall S.A. |
Branded | BB | Stable | Weak | Intermediate | Adequate (0) | bb | bb | ||||||||||||
Organon & Co. |
Generic | BB | Negative | Fair | Significant | Adequate (0) | bb | bb | ||||||||||||
Elanco Animal Health Inc. |
Animal Health | BB- | Stable | Satisfactory | Aggressive | Adequate (0) | bb | bb- | CRA (-1) | |||||||||||
Mallinckrodt plc |
Generic | BB- | Stable | Weak | Intermediate | Adequate (0) | bb | bb- | CRA (-1) | |||||||||||
ANI Pharmaceuticals Inc. |
Generic | BB- | Stable | Weak | Significant | Adequate (0) | bb- | bb- | ||||||||||||
Grunenthal Pharma GmbH & Co. KG |
Generic | BB- | Stable | Weak | Significant | Adequate (0) | bb- | bb- | ||||||||||||
Grifols S.A. |
Branded | B+ | Stable | Satisfactory | Highly Leveraged | Adequate (0) | b+ | b+ | ||||||||||||
Aenova Holding GmbH |
CDMO | B+ | Stable | Weak | Aggressive | Adequate (0) | b+ | b+ | ||||||||||||
Amneal Pharmaceuticals Inc. |
Generic | B+ | Stable | Weak | Aggressive | Adequate (0) | b+ | b+ | ||||||||||||
Endo Inc. |
Branded | B+ | Stable | Weak | Aggressive | Adequate (0) | b+ | b+ | ||||||||||||
Stamina Bidco B.V. |
CDMO | B+ | Stable | Weak | Aggressive | Adequate (0) | b+ | b+ | ||||||||||||
Catalent Inc. |
CDMO | B+ | Negative | Fair | Highly Leveraged | Adequate (0) | b | b+ | CRA (+1) | |||||||||||
Financiere Top Mendel SAS |
Animal Health | B | Stable | Satisfactory | Highly Leveraged | Adequate (0) | b+ | b | CRA (-1) | |||||||||||
AI Sirona (Luxembourg) Acquisition S.a.r.l. |
Generic | B | Stable | Fair | Highly Leveraged | Adequate (0) | b | b | ||||||||||||
CHEPLAPHARM Arzneimittel GmbH |
Generic | B | Stable | Fair | Highly Leveraged | Adequate (0) | b | b | ||||||||||||
Kedrion SpA |
Branded | B | Stable | Fair | Highly Leveraged | Adequate (0) | b | b | ||||||||||||
Nidda BondCo GmbH |
Generic | B | Stable | Fair | Highly Leveraged | Adequate (0) | b | b | ||||||||||||
Rossini Acquisition S.a.r.l. |
Generic | B | Stable | Fair | Highly Leveraged | Adequate (0) | b | b | ||||||||||||
Azurity Pharmaceuticals Inc. |
Branded | B | Stable | Weak | Highly Leveraged | Adequate (0) | b | b | ||||||||||||
Bowtie German Bidco Gmbh |
CDMO | B | Stable | Weak | Highly Leveraged | Adequate (0) | b | b | ||||||||||||
Fabbrica Italiana Sintetici SpA |
CDMO | B | Stable | Weak | Highly Leveraged | Adequate (0) | b | b | ||||||||||||
Neopharmed Gentili SpA |
Generic | B | Stable | Weak | Highly Leveraged | Adequate (0) | b | b | ||||||||||||
Neuraxpharm Holdco S.a.r.l. |
Generic | B | Stable | Weak | Highly Leveraged | Adequate (0) | b | b | ||||||||||||
Padagis LLC |
Generic | B | Stable | Weak | Highly Leveraged | Adequate (0) | b | b | ||||||||||||
Pharmanovia Bidco Ltd. |
Generic | B | Stable | Weak | Highly Leveraged | Adequate (0) | b | b | ||||||||||||
Stars UK Bidco Ltd. (Theramex) |
Branded | B | Stable | Weak | Highly Leveraged | Adequate (0) | b | b | ||||||||||||
Roar BidCo AB |
CDMO | B- | Stable | Fair | Highly Leveraged | Adequate (0) | b | b- | CRA (-1) | |||||||||||
ADVANZ PHARMA Holdco Ltd. |
Generic | B- | Stable | Weak | Highly Leveraged | Adequate (0) | b | b- | CRA (-1) | |||||||||||
Cambrex Corp. |
CDMO | B- | Stable | Weak | Highly Leveraged | Adequate (0) | b- | b- | ||||||||||||
Curium Midco S.a.r.l. |
CDMO | B- | Stable | Weak | Highly Leveraged | Adequate (0) | b- | b- | ||||||||||||
Emergent BioSolutions Inc. |
Branded | B- | Stable | Weak | Highly Leveraged | Adequate (0) | b- | b- | ||||||||||||
Financiere Verdi I SAS |
Generic | B- | Stable | Weak | Highly Leveraged | Adequate (0) | b- | b- | ||||||||||||
Kepler Spa |
CDMO | B- | Stable | Weak | Highly Leveraged | Adequate (0) | b- | b- | ||||||||||||
Alvogen Pharma US Inc. |
Generic | B- | WatchNeg | Vulnerable | Highly Leveraged | Weak (0) | b- | b- | ||||||||||||
Bausch Health Cos. Inc. |
Branded | CCC+ | Negative | N.A | N.A | N.A | N.A | N.A | ||||||||||||
Curia Global Inc. |
CDMO | CCC+ | Negative | N.A | N.A | N.A | N.A | N.A | ||||||||||||
CDMO--Contract development and manufacturing organizations. FP--Financial policy modifier. CRA--Comparable ratings analysis modifier. SACP--Stand-alone credit profile. N.A.--Not available. Note: Corporate Rating is Foreign Currency Long Term Rating. Source: S&PGlobal Ratings. |
Distribution Of Ratings
We rate 27 entities (39%) as investment grade ('BBB-' and above) and 43 entities (61%) as speculative-grade ('BB+' and below). About half (20) of the companies with speculative-grade ratings are also owned by financial sponsors, which tend to have relatively high levels of financial risk (generally consistent with S&P Global Ratings-adjusted leverage above 5x).
Chart 1
Outlook And CreditWatch Distribution
Overall, about 86% of rating outlooks are stable, 11% are negative (including CreditWatch placements), and 3% are positive. Chart 2 below, shows this distribution across the subsectors of the industry.
Chart 2
Utilization Of Rating Modifiers
About 26% of the ratings incorporate one or more modifiers. Most often, this is the comparative rating analysis that we use for credit considerations that we have not already factored into the business risk and financial risk. In most of the remaining cases it's the use of our financial policy modifier, which incorporates our view of a company's financial risks beyond our base-case assumptions for cash flow and leverage. This could, for example, capture the risks related to a company's appetite for large-scale, debt-financed mergers and acquisitions for which the amount and timing cannot be predicted. Finally, the diversification modifier is applied to certain conglomerates, with a level of diversity not captured in our assessment of business risk.
Distribution Of Liquidity Scores
We consider most of our rated pharmaceutical issuers to have liquidity that is adequate or better. This reflects the sector's good access to debt markets. Typically, the amount of cash that pharmaceutical companies hold, combined with their cash generation and liquidity resources, will cover the uses of cash to which they have committed over the next 12 months by 1.2x or more. Moreover about 75% (20 of 27) of companies with ratings that are investment-grade have liquidity we categorize as 'Strong'. This reflects a ratio of sources to uses exceeding 1.5x, along with other supporting quantitative and qualitative considerations.
The ratings and scores in this document are as of Jan. 7, 2025.
Related Criteria
- Corporate Methodology, Jan. 7, 2024
- Corporate Methodology: Ratios And Adjustments, April 1, 2019
- Rating Government-Related Entities: Methodology And Assumptions, March 25, 2015
Related Research
- How Business Strength Varies Across Top Branded Pharmaceutical Companies (2024 Update), Aug. 6, 2024
- Pharmaceutical Industry 2024 Credit Outlook Is Stable As Revenue Growth Mitigates Pressures, Jan. 24, 2024
- Mortality In Health Care: What Factors Lead To Default For Pharmaceutical Companies, Feb. 14, 2022
This report does not constitute a rating action.
Primary Credit Analyst: | David A Kaplan, CFA, New York + 1 (212) 438 5649; david.a.kaplan@spglobal.com |
Secondary Contacts: | Arthur C Wong, Toronto + 1 (416) 507 2561; arthur.wong@spglobal.com |
Tulip Lim, New York + 1 (212) 438 4061; tulip.lim@spglobal.com | |
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Raam Ratnam, CFA, CPA, London + 44 20 7176 7462; raam.ratnam@spglobal.com | |
Scott E Zari, CFA, Chicago + 1 (312) 233 7079; scott.zari@spglobal.com | |
Patrick Bell, New York (1) 212-438-2082; patrick.bell@spglobal.com | |
Adam Dibe, Toronto + 1 (416) 507 3235; adam.dibe@spglobal.com | |
Carissa Schreck, New York + 1 (212) 438 4634; carissa.schreck@spglobal.com | |
Anna Overton, London + 44 20 7176 3642; anna.overton@spglobal.com | |
Guillaume Benoit, Paris + 33 14 420 6686; Guillaume.Benoit@spglobal.com | |
Shinichi Endo, CFA, Tokyo (81) 3-4550-8773; shinichi.endo@spglobal.com | |
Paulina Grabowiec, London + 44 20 7176 7051; paulina.grabowiec@spglobal.com | |
Ihsane Mesrar, Paris (33) 1-4075-2591; ihsane.mesrar@spglobal.com | |
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Makiko Yoshimura, Tokyo (81) 3-4550-8368; makiko.yoshimura@spglobal.com | |
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Additional Contact: | Akshay S Aggarwal, Mumbai; akshay.aggarwal@spglobal.com |
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