AstraZeneca stands as Pfizer’s rival in the UK so it would be a great help to the US Company to absorb their business. Additionally, it would increase their output of cancer drugs and cut costs for the company and give them tax savings. It makes sense why Pfizer is pushing so hard for the deal, despite AstraZeneca’s wriggling and evasions.
The potential of such a deal going through has boosted the stock of both companies. Shares in AstraZeneca have jumped 17 percent after news broke that Pfizer was pursuing them again. Pfizer’s stock also rose slightly, about 1.5 percent, in US premarket trading. If this deal were to go through it would be the largest foreign acquisition of any British firm. Additionally, it would mark the largest ever, pharmaceutical deal. The Chief Executive for Pfizer, Ian Read said that “society wants products faster, they want more products and they want value…Industry is responding to society’s request for increased efficiencies and productivity.” If the merger goes through Pfizer would be able to get more cancer medication through the pipeline, as well as other drugs to keep up with the reference ‘need of society’ to have lots of medication available quickly. Additionally, they may be able to drive down some of their cost so that they can keep up with the generic drug alternatives.
So far, AstraZeneca has been unwilling to talk to Pfizer about the deal, despite more money and repeated attempts from the US Company. However, Pfizer is not giving up hope because they really believe that this merger makes the most sense for both their company and AstraZeneca investors.
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