November 6, 2014
By Riley McDermid, BioSpace.com Breaking News Staff
British drugmaker AstraZeneca Plc is feeling pretty smug after its share price has climbed as high as the original offer larger rival Pfizer Inc. had said it would pay for the company in a buyout last May, the firm’s chief executive said today.
Chief Executive Officer Pascal Soriot told reporters on a conference call that AstraZeneca’s closing price of $73.54 (46.20 pounds) on Wednesday was roughly the amount Pfizer offered the company’s board when they first discussed a merger last January. At the time, the price was considered a premium and many analysts thought AstraZeneca was hasty in walking away.
Now, a year later, after one of the most bullish market climates in biotech history, AstraZeneca has shown it can create value without exiting to potential suitors, said Soriot.
“The original price was 46 pounds and it was meant to be a premium,” Soriot said. “Hopefully that shows the value we can make implementing our independent strategy.”
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.
Still, even without the tax breaks, Wall Street has been rife with speculation that Pfizer will return for another bite at the apple after its U.K. takeover “cool down” period expires on Nov. 26. Soriot would not comment on whether AstraZeneca would entertain new offers, but he did say that investors may expect “continued news flow over the next several months” which could push its share price even higher.
AstraZeneca will hold an investor briefing on Nov. 18 which will outline its strategy in coming quarters.
