Friday, December 19th0.9°C
24562
23943

AstraZeneca share price up 15 per cent after Pfizer discloses details of $100 billion offer

LONDON - Shares in Anglo-Swedish drugmaker AstraZeneca jumped 15 per cent on Monday after U.S. pharmaceutical firm Pfizer said it offered to buy the company for around $100 billion.

Pfizer, the maker of Viagra, said that AstraZeneca rejected an initial approach in January valuing the company at about 59 billion pounds ($100 billion). The cash and shares deal would represent a 30 per cent premium on AstraZeneca's closing share price of 35.26 pounds on Jan. 3, around the time the offer was made.

AstraZeneca PLC said it concluded that the proposal "very significantly undervalued AstraZeneca and its prospects."

Another effort to revive discussions took place Saturday, though Pfizer said Astra did not engage. Pfizer remains interested and is confident a combination is possible, issuing a statement to the markets underscoring the potential advantages of the deal.

"Pfizer believes the strategic, business and financial rationale for a transaction is compelling," the company said in a statement.

Shares traded Monday at 46.77 pounds after the approach was revealed.

The deal comes as drugmakers take advantage of lower interest rates in a spate of mergers and acquisitions. One such deal last week involved Swiss drugmaker Novartis AG, which agreed to swap its vaccine business for GlaxoSmithKline PLC's cancer drug unit and sold its veterinary drug arm to Eli Lilly and Co.

Pharmaceutical companies are trying to boost sales and cut costs as many see revenue flat line or even dip due to increased competition from generic drugs and rising expenses for the development of new products.

Pfizer's bid for AstraZeneca would mark the biggest-ever foreign takeover of a British business, and it is possible the Conservative-led government of David Cameron may take a position on the matter, particularly since it has taken an interest in bolstering the country's biotech sectors.

"It would raise fears about the protection of AstraZeneca's innovative research program in the U.K., especially given that Pfizer has already looked at the U.K. and decided to remove its own R&D operations," said Sarah Main, the director of Campaign for Science and Engineering, an independent advocate for science and engineering in the U.K.

AstraZeneca is currently undergoing a major research and development re-organization to offset the expiration on patents for drugs like cholesterol medication, Crestor. The company has been reducing costs and trying to make research programs more productive.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14429.77+83.02
S&P CDNX669.15+3.65
DJIA17807.3129.16
Nasdaq4757.142+8.745
S&P 5002067.48+6.25
CDN Dollar0.8614-0.002
Gold1197.70+3.00
Oil55.64+1.53
Lumber336.80-0.10
Natural Gas3.484-0.158

 
Okanagan Companies
Pacific Safety0.13+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.26-0.02
Cantex0.03-0.005
Anavex Life Sciences0.1899+0.0199
Metalex Ventures0.055+0.005
Russel Metals25.53-0.47
Copper Mountain Mining1.56-0.01
Colorado Resources0.11-0.01
ReliaBrand Inc0.011-0.0089
Sunrise Resources Ltd0.055+0.005
Mission Ready Services0.225+0.005

 
24130


24153

FEATURED Property
17968578 - 4524 Eldorado Court, Kelowna, bC
5 bedrooms 6 baths
$3,295,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


My final thoughts on real estate

This will be the last column I write on real estate. Largely because at the end of the year I will be handing in my license. After 20+ years of working in land development, resort development and rea...


Reflecting on the end of the year

The importance of the end of the year and the Christmas holidays is profound. It is a time to reconnect with family and traditions that have made us who we are. But the year-end has always been a time...


Parenthood: Estates, insurance & taxes

It is now even more important to ensure your loved ones are well looked if anything should happen to you. Here are a few topics to consider helping you prepare for some of the unexpected events that c...

_



24386

24476


Member of BC Press Council


22842