U.S. Leveraged Finance Spotlight Series: Teva Pharmaceutical Industries Limited

... rating reflects the company's substantial indebtedness and modest financial flexibility. This position is caused by several adverse developments including regular and increasing price erosion of its U.S. generic medicines business; heightened competition for Teva's leading specialty medicine, Copaxone; continuing consolidation of Teva's customer base; and delays in development and launches of both generic and specialty products. Despite these challenges, Teva is the leading pharmaceutical manufacturer of generic drugs in the world relative to Mylan N.V. (BBB¡/Stable) and Novartis AG (AA/Negative). Mylan is Teva's closest peer and its investment-grade credit profile reflects a stronger balance sheet than Teva's. Teva's scale, geographic reach and the level of product differentiation is expected to contribute to sustainable FCF of $2.0 billion¡$2.5 billion over Fitch Ratings' forecast period, which excludes the effects of litigation costs...

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