...Healthcare reform in developed markets, increased spending in emerging markets and the prospect of big profits from rapid growth in biosimilar drugs are likely to drive further consolidation in the fragmented generic drug manufacturing sector, Fitch Ratings says. The potential for companies to sacrifice near-term credit quality in pursuit of these acquisitions is a key risk to ratings, despite underlying trends pointing to good long-term growth prospects. Deals between generic drugmakers, which manufacture copies of brand-name drugs whose patent has expired, have come to the fore in the latest wave of healthcare M&A. Transactions in July included Teva Pharmaceutical Industries Limited (BBB+/RWN), the largest global manufacturer of generic drugs, acquiring the generics business of Allergan (formerly Actavis) for USD40.5bn. London-listed Hikma Pharmaceuticals is also aggressively growing its generics position in the US through the acquisition of Roxane Laboratories from Boehringer Ingelheim....
