Active Stocks
Tue Mar 19 2024 15:21:08
  1. Tata Consultancy Services share price
  2. 3,974.15 -4.12%
  1. Tata Steel share price
  2. 148.85 -0.50%
  1. Bharti Airtel share price
  2. 1,224.85 -0.02%
  1. Power Grid Corporation Of India share price
  2. 259.05 -2.25%
  1. ITC share price
  2. 409.80 -1.82%
Business News/ Companies / News/  Pfizer considers $100 bn bid for AstraZeneca: report
BackBack

Pfizer considers $100 bn bid for AstraZeneca: report

Informal conversations about a deal reported to have taken place

AstraZeneca is Britain’s second-biggest pharmaceuticals group. Photo: BloombergPremium
AstraZeneca is Britain’s second-biggest pharmaceuticals group. Photo: Bloomberg

London: US pharmaceutical firm Pfizer Inc. has approached British rival AstraZeneca Plc to propose a ­­£60 billion ($101 billion) takeover, Britain’s ‘Sunday Times’ reported.

The paper cited senior investment bankers and industry sources saying that informal conversations about a deal had taken place between the two but that no talks were currently under way after AstraZeneca resisted the approach.

Pfizer and AstraZeneca both declined to comment on the report.

AstraZeneca, Britain’s second-biggest pharmaceuticals group, has been frequently touted as a potential takeover target as it wrestles with patents expiring on a number of best-selling drugs, leaving future growth uncertain.

Despite these problems, the company has attracted attention for experimental cancer drugs it is developing, which could be interesting for Pfizer which has faced patent losses of its own, notably anti-cholesterol treatment Lipitor.

The two firms are familiar with each other’s products working together on projects such as the pioneering of a new kind of clinical trial for cancer drugs announced last week.

Pfizer could use cash it has accumulated through overseas subsidiaries, which if repatriated to the US would be heavily taxed.

In the past, Swiss drug firm Novartis AG and larger British peer GlaxoSmithKline Plc (GSK) have been mentioned as potential suitors, although GSK has publicly said it is not interested in making a large acquisition in recent years.

AstraZeneca, which announces first quarter results on Thursday, has a market valuation of around $80 billion, compared with Pfizer—valued at $193 billion, according to Thomson Reuters data.

Earnings at AstraZeneca fell 6% in the fourth quarter of 2013, and the drug maker has said it expects them to keep falling in 2014 as generic competition to Nexium, its popular heartburn and ulcer drug, takes a big bite out of US profits from late May.

AstraZeneca has suffered a dry period in drug discovery in recent years and badly needs to find new medicines to replace blockbusters such as Nexium and Crestor, a treatment for high cholesterol that will lose patent protection in a few years.

Pfizer’s last big acquisition was in 2009, when it bought US rival Wyeth for $68 billion.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 20 Apr 2014, 08:03 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie