EU HEALTHCARE: Healthcare: Week in Review

The whole market had a challenging week and Healthcare was no different. Spreads on average were +6bps wider vs Bunds. Eurofins was the worst performer as higher beta names suffered, despite last week’s Fitch affirmation. Viatris, however, found some stability after a +35bps widening in 3 weeks.
• Galderma brought an inaugural €500 5yr at DBR +112.2 Thursday was a particularly weak day in the markets and this deal was quoted around 5bps wider. GALDSW equity is off the highs, but the stock market still places a high value on the growth potential of the company with consumer aesthetics warranting a higher multiple than pharma. The company is guiding for further leverage reduction from 2.3x to <2.0x One to watch.
• Viatris found some relief on Monday as Fitch affirmed its BBB Stable rating, in contrast to S&P’s recent cut to BB+. Fitch acknowledge the revenue reduction from the FDA actions concerning Indore but view this as a temporary setback.
• Novo Nordisk was +4 wider. The market cap is now 50% of last June as competition in the weight-loss space increases. Roche signed a deal with Zealand pharma to develop an amylin analog. This saw ROSW pay $1.65bn upfront and potentially $5.3bn over time as milestones are reached. Last week, AbbVie struck a deal for amylin with Gubra for a smaller sum. Amylin can be seen either as complimentary to GLP1 or as a more tolerable alternative