...- Czech-based pharmaceutical company Zentiva is acquiring Alvogen's Central and Eastern European (CEE) portfolio of generic and over-the-counter (OTC) products. The transaction will be financed using about 560 million of new debt and a 133 million equity injection to support the 660 million acquisition. - Although we project that the adjusted leverage will increase to about 8x in 2020, it should reduce below 7x within 12-18 months of the transaction closing, as EBITDA improves. We are therefore affirming our 'B' ratings and removing them from CreditWatch negative, where it had been placed on Nov. 1, 2019. - Under its new management, Zentiva seems to be delivering improvements in the supply chain, sourcing, and commercial functions. That said, it could still experience some setbacks in performance. - Our negative outlook highlights execution risks to the anticipated improvements in profitability and cash flow generation from the ongoing business turnaround plans, heightened by the Alvogen...
