EU HEALTHCARE: Healthcare: Week in Review

Healthcare: Week in Review
A very strong week with spreads 4bps tighter on average. Ipsen was the top performer at -14bps. Philips equity was strong with a 6% gain albeit following a lacklustre 6 months.

• Novo Nordisk equity was the underperformer of the week at -7.5% lower. The company is under pressure from Eli Lilly and several challenger entrants to the weight-loss field. Upcoming patent expirations in China and Canada add to the company’s problems. This week also saw news potentially linking weight-loss drugs to pancreatitis. For now, credit is relaxed as the company’s strength means that there are no near-term concerns: bonds -4 tighter.
• Lonza is said to be closer to a sale of its Capsule and Health Ingredients business. We would expect proceeds to be largely reinvested in growth businesses.
• Eurofins refinanced their Schuldschein loans with €500m out to 5,7, and10yrs. The company now has no significant maturities before its July 2026 Eurobond.
• Takeda issued $2.4bn across 10 and 20yrs. This follows on from $1.3bn equivalent in Yen earlier this month.