Earlier, today Pfizer confirmed that it was pursuing a takeover of AstraZeneca in a deal that could be valued at $US100 billion.
Obviously a lot of drugs are in play in many categories that both Pfizer and AstraZeneca compete in.
Importantly, AstraZeneca would get Pfizer into some key markets — notably, oncology. Here’s Citi’s Andrew Baum in a note to clients this morning:
Transforming PFE into an oncology company. We gently probed Mikael Dolsten, PFE’s head of R&D at our Feb 2014 Citi Healthcare Conference on whether Pfizer had the ability to turn itself into an oncology company given several high profile historic mis-steps. He gave a wry smile and “that’s a very good question”. As we highlighted previously, the acquisition of AZN enables PFE to realistically transform itself into an oncology player by leveraging AZN’s historic research and commercial expertise in this area. Critically it catapults PFE+AZN into a key player along the axes of immuno-oncology and auto-immune diseases, with a broad range of assets to both up-regulate and down-regulate the immune system, in our view…
In a presentation to investors this morning, Pfizer offered a couple slides showing what a Pfizer-AstraZeneca combination could look like. Here are a few bullets:
- Complementary strategic fit across multiple key therapeutic areas with enhanced global offerings
- Steady stream of potential new product launches anticipated over coming years
- Increased scale and portfolio breadth of combined Established business to maximise potential of portfolios
Here are three slides showing how the two companies’ established and pipeline drugs would complement each other. Odds are, you’re on one or you know someone on one.