Pfizer5 Oct 2015 15:57
April 22, 2015
By Riley McDermid, BioSpace.com Breaking News Sr. Editor
Rumors are continuing to rumble that British drug giant AstraZeneca PLC (AZN) is likely to receive a second, higher bid for the company from its erstwhile suitor Pfizer Inc. (PFE), almost a year after its first $119 billion offer fell flat on its face last May.
Closely followed Motley Fool columnist Alessandro Passetti wrote Wednesday that a senior banker had told him that there are “widespread rumors in the asset management community that Pfizer is considering another bid for Astra.”
Passetti said that the value knocked off of Astra’s share price after it refused the bid could make it a manageable target financially, though its possibility as a tax haven has now been revoked after American regulators put the kibosh on so-called inversion deals last year. AstraZeneca ultimately rejected Pfizer’s final bid of 55 pounds per share because it felt its experimental drug company made it a valuable standalone entity. Pfizer had planned to move its headquarters to Ireland as part of the deal, hoping to capitalize on lucrative tax loopholes that have since been closed.
“I think that Pfizer won’t make any comeback as tax-driven deals appear to be off the table, so there are two elements you ought to take into account right now: first-quarter results, which are due on Friday, and Astra’s pipeline of drugs,” he wrote.
“On the face of it, 2014 quarterly figures are relatively easy to beat, so I would not be surprised if good news surrounded Astra in the wake of the announcement. That may contribute to short-term upside, but it’s hard to believe capital appreciation would be greater than 1 percent to 1.5 percent on the day, regardless of how the market performs.”
Unnamed sources also said that upcoming data from the American Society of Clinical Oncology conference for Astra and competitors like Bristol-Myers Squibb, Merck and Roche could clinch Pfizer’s decision to take another bite at the apple.