Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Pfizer Inc.’s share price down, considers abandoning the acquisition bid as AstraZeneca forecasts increasing revenue

pfizerPfizer Inc. is considering dropping its efforts for the acquisition of the UK pharmaceutical giant AstraZeneca Plc. The company is to abandon its 117-billion-dollar (69.4-billion-pound) bid to purchase the U.K. company in a deal that would have been the largest takeover in the drug industry so far.

One of the analysts, who work at Barclays Plc – Mr. Mark Purcell said in a note to clients, which was cited by Bloomberg: “The probability of a future AstraZeneca acquisition is dimmed, but not entirely extinguished.”

Currently, Pfizer Inc. is the largest drug manufacturer in the U.S. A person with knowledge of the process, who asked not to be named, because the issues are private, said that the deadline for the company to make an offer is today, but Pfizer will most probably not do so.

If the company abandons its bid for its U.K. rival now, it would have to wait six months before making a new offer. The negotiations may start over after three months in case AstraZeneca initiates the talks. The drug maker refused to comment on the situation and did not provide any details if it considers to make a new bid after its latest one was rejected by the board of AstraZeneca last week.

At the same time, AstraZeneca has been reported to be planning to show its investors this week why it preferred to reject the takeover bid of Pfizer. The Chief Executive Officer of the company Mr. Pascal Soriot is expected to report some clinical data at the worlds premier cancer conference at the end of the week. AstraZenecas Chief Executive Officer also shared the companys forecast, according to which the drug manufacturer expects a 75% increase in revenue over the next ten years due to new treatments for diabetes, cancer and asthma.

According to some analysts, such a projection is too optimistic. Some people close to AstraZeneca, claim that the forecast does not aim to increase the companys defence against Pfizer. As reported by the Financial Times, some of the people familiar with the matter commented: “These numbers werent plucked from thin air. They were the numbers we already had internally. We wouldn’t have made them public under normal circumstances and Pascal realises he’s now on the hook for them.”

Pfizer Inc. was 0.57% down to close at 29.49 dollars per share on Friday, marking a one-year change of +1.31%. The US stock market remained closed today, due to a national holiday. According to the information published on CNN Money, the 14 analysts offering 12-month price forecasts for Pfizer Inc. have a median target of 34.00, with a high estimate of 41.00 and a low estimate of 29.00. The median estimate represents a +15.29% increase from the last price of 29.49.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News