MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said it has
placed generic drug maker Barr Pharmaceuticals Inc.'s 'BBB-' corporate credit
rating on negative watch, following the company's announcement of disappointing
earnings and lowered expectations for 2008.
S&P said the company's continued operating weakness may result in a ratings
downgrade.
Barr experienced lower sales and pricing in both its oral contraceptive and
non-oral contraceptive generic drug lines. Margins were also affected by lower
sales of its high-margin proprietary product, Plan B, because of excess
inventory in the wholesaler channel.
S&P said it believe there is a chance the company will return to stronger
sales and earnings growth in the second half of 2008, given the fuller new
product launch schedule that includes a generic version of the oral
contraceptive Yasmin, and the possibility of Plan B sales rebounding once
inventory is cleared.
TFN.newsdesk@thomson.com
vsr/ans
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