...Downgrade to `A': The downgrade in December 2015 to `A' from `A+' reflects the acceleration of investments in the science-based business through acquisitions and R&D, as well as operational efficiencies at a time of growing near-term pressure on sales and profitability from the loss of patent protection of key drugs. The increase in business and financial risks reflects a profile more in line with an 'A' rating, compared with sector peers. Patent Expiries Pressure Performance: 18% of 2014 sales are at risk from US patent expiries over the next three years (down from around 28% of 2013 sales following the loss of patent protection for Nexium in 2015). The company is less affected by patent expiry than some of its US peers, AbbVie Inc, Amgen, BMS or Eli Lilly, with sales at risk of 76.8%, 21.7%, 30.4% and 37%, respectively. Still, it is the most exposed among its European peers. Focus on R&D Productivity: AstraZeneca remains under pressure to deliver on its R&D pipeline, as a result of the...
