Monday, April 27th19.1°C
24963
24291

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 TSX15344.08-64.25
S&P CDNX690.10-7.60
DJIA18037.97-42.17
Nasdaq5060.25-31.84
S&P 5002108.92-8.77
CDN Dollar0.8266-0.0005
Gold1199.70-3.60
Oil56.72-0.27
Lumber255.00-1.20
Natural Gas2.482-0.008

 
Okanagan Companies
Pacific Safety0.08-0.04
Knighthawk0.010.00
QHR Technologies Inc1.40+0.02
Cantex0.035+0.005
Anavex Life Sciences0.395-0.035
Metalex Ventures0.095+0.000
Russel Metals27.05-0.11
Copper Mountain Mining1.25+0.10
Colorado Resources0.10+0.01
ReliaBrand Inc0.004-0.001
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.19-0.01
Decisive Dividend Corporation1.80+0.10

 



25866

FEATURED Property
2237086#336-3996 Beach Ave
2 bedrooms 2 baths
$325,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Buy versus rent

Consider the top five reasons to buy versus rent: #5 Experience Freedom: Home ownership will free you from the ties that bind you to a landlord...no longer will you be dependent on someone else&rsq...


What's your score?

There was a time when we would sit down with nothing more than a sheet of paper and a sharp pencil to do the math. Totalling our expenses and subtracting our revenue, the amount left over was the answ...


Do you dare to dream?

Photo: Thinkstock.comI have never been able to understand why some people can only see as far ahead as the end of the current day. Instead of aiming for long term goals, they just wallow in their ever...

_



26091

26091


Member of BC Press Council


24843