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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
HEALTHCARE
Healthcare: Week in Review
- Glaxo GSK was the clear underperformer on the week. Bonds widened +9.5bps on average following the decision to allow 72k Zantac cases in Delaware to be heard in front of a Jury.
- Becton Dickinson BDX widened +5bps. The company announced the acquisition of Edward Lifesciences’ Critical Care unit for $4.2 billion of which $3.2 billion would be funded by debt. We pointed out on the day that BDX bonds were trading at similar levels in both USD and EUR and the very next day Becton did indeed issue in both currencies. What was particularly notable was the company’s decision to finance the deal to quickly even though it doesn’t close until year end. A look at the BBB $ index shows spreads in the lowest 1% over the past 10yrs: clearly the treasurer did not want to waste the opportunity to lock in cheap money. S&P said that BDX had headroom so no action from them. The 2032 & ’36 bonds came with generous NICs and tightened -2bps in secondary.
- Bayer BAYNGR was this week’s winner with bonds -3bps tighter. It successfully had damages reduced by 82% from $2.25b to $400m in a Philadelphia Round-Up case.
- Sanofi SANFP was said to be planning the spin-off of its EUR 20 billion Consumer Health unit – FT report. Sanofi bonds were +2.5bps wider on the week as it also has Zantac litigation exposure.
- Molnlycke MOLNLY issued a EUR 500m 10y as well as tendering the 2025 note. The new issue came with zero NIC and rallied a further -7 bps.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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