Boston, MA 05/20/2014 (wallstreetpr) – Pfizer Inc. (NYSE:PFE) is all but determined to land AstraZeneca plc (ADR) (NYSE:AZN) at all costs, despite being rebuffed with two lucrative bids. The biopharmaceutical giant has come back for a third time with an improved bid thought to be worth $118.8 billion consequently hiking its stock and cash offer by 15%.
Resurgence of Deals in the Industry
The deal, if it goes through in the current state, will be the richest among drug makers and the third largest in any industry. Pfizer has continued to receive massive opposition from the British government and AstraZeneca, awaiting to see its next move. Pfizer Inc. (NYSE:PFE), the second largest drug maker in the world maintains that AstraZeneca’s business would complement its operations ensuring they become even stronger going forward.
There has been a surge of deals in the industry as companies continue strike deals aimed at accelerating growth or eliminating non-core assets. The recent deal involves the acquisition of GlaxoSmithKline’s cancer drug business for $16 billion by Novartis AG. Valeant Pharmaceuticals is reported to have made an unsolicited offer of $46 billion to acquire Allergan.
Government Opposed to Job Cuts and Facility Closures
Pfizer Inc. (NYSE:PFE) looks to have reached a climax with its latest bid maintaining it cannot be increased any further until AstraZeneca allows for discussion before May 26, 5 P.M. The latest deal has seen Pfizer increase its cash offer to AstraZeneca’s shareholders from 33% to 45%. The Biopharmaceutical giant has also announced that it will not be approaching AstraZeneca’s stockholders directly until it receives a response from the Board. Pfizer now hopes for AstraZeneca’s shareholders to push for a deal as it looks to have hit a hard rock with AstraZeneca’s board of directors.
AstraZeneca has consistently turned down Pfizer bids offer on the basis that they undervalue the company as well as its wide range of experimental drugs. The British government on its part is opposed to the merger on the basis it might result in job cuts, facility closures and the loss of science leadership in the United Kingdom. Pfizer Inc. (NYSE:PFE) on its part maintains that cuts will be limited and will ensure full completion of the research and development hub in Cambridge.
