In separate statements issued on April 28, Pfizer and AstraZeneca confirmed previous discussions about a possible mergertook place in January 2014. AstraZeneca declined to engage in further discussion at that time. Pfizer reported that it contacted AstraZeneca on April 26 seeking to renew discussions; however, AstraZeneca again declined to engage in discussions.
AstraZeneca, it its statement, reported that its board concluded that the proposal, reportedly worth $100 billion, “very significantly undervalued” the company and its prospects. The board also said it was committed to executing the strategy announced in March 2013.
In its statement, Pfizer listed a number of benefits of a combined company, including a strong cancer therapy portfolio, greater depth in immune-oncology, cardiovascular medicines, anti-diabetic medicines, as well as enhanced distribution capabilities. Financial analysts have identified tax advantages for Pfizer; if the two companies combine under a UK-holding company, Pfizer would benefit from lower tax rates in Britain.