AstraZeneca Board Rejects Latest Pfizer Offer - Pharmaceutical Technology

Latest Issue
PharmTech

Latest Issue
PharmTech Europe

AstraZeneca Board Rejects Latest Pfizer Offer


AstraZeneca board of directors rejected the latest $106 billion acquisition proposal from Pfizer, reporting in a statement that the terms are “inadequate, substantially undervalue AstraZeneca, and are not a basis on which to engage with Pfizer.”

The board noted that the a large proportion of the consideration payable in Pfizer shares and the tax-driven inversion structure remain unchanged from earlier proposals and were reasons for rejecting the proposal. In addition, Leif Johansson, chairman of AstraZeneca, reiterated the company’s plans for investment and growth and advised shareholders to take no action.

“AstraZeneca continues to invest significantly in research, development and manufacturing in the U.K., Sweden and the U.S. We are showing strong momentum as an independent company, in particular with our exciting, rapidly progressing pipeline, which the Board believes will deliver significant value for shareholders,” Johansson said in a statement. “Pfizer’s proposal would dramatically dilute AstraZeneca shareholders’ exposure to our unique pipeline and would create risks around its delivery. As such, the Board has no hesitation in rejecting the proposal.”

Industry analysts indicated that Pfizer may take the route of a hostile takeover. The takeover would be the largest acquisition of a British company by a foreign business. In a letter to British Prime Minister David Cameron, Pfizer Chairman and CEO Ian Read outlining commitments the company would make as part of the acquisition, including the completion of the planned AstraZeneca Cambridge campus, establishing the company’s corporate and tax residence in England, and basing other operations in the United Kingdom.  

Pfizer’s May 2, 2014 Offer Statement
AstraZeneca’s May 2, 2014 Response

 

ADVERTISEMENT

blog comments powered by Disqus
LCGC E-mail Newsletters

Subscribe: Click to learn more about the newsletter
| Weekly
| Monthly
|Monthly
| Weekly

Survey
FDASIA was signed into law two years ago. Where has the most progress been made in implementation?
Reducing drug shortages
Breakthrough designations
Protecting the supply chain
Expedited reviews of drug submissions
More stakeholder involvement
Reducing drug shortages
29%
Breakthrough designations
8%
Protecting the supply chain
42%
Expedited reviews of drug submissions
8%
More stakeholder involvement
13%
View Results
Jim Miller Outsourcing Outlook Jim Miller Health Systems Raise the Bar on Reimbursing New Drugs
Cynthia Challener, PhD Ingredients Insider Cynthia ChallenerThe Mainstreaming of Continuous Flow API Synthesis
Jill Wechsler Regulatory Watch Jill Wechsler Industry Seeks Clearer Standards for Track and Trace
Siegfried Schmitt Ask the Expert Siegfried SchmittData Integrity
Sandoz Wins Biosimilar Filing Race
NIH Translational Research Partnership Yields Promising Therapy
Clusters set to benefit from improved funding climate but IP rights are even more critical
Supplier Audit Program Marks Progress
FDA, Drug Companies Struggle with Compassionate Use Requests

Click here