Pharma M&A rumor mill in top gear

Never let the facts get in the way of a good story - be it in terms of media hype or of moving stock prices. That was very much the case mid-May, when first Anglo-Swedish AstraZeneca was linked with US major Schering-Plough and then global drug leviathan Pfizer with a takeover of Germany's MediGene.

UK-based AstraZeneca saw its share price rise 1.9% to L21.70 on May 15, on suggestions that a link up with S-P was on the cards. The same news saw Shire's stock fall 1.6%, because it had gained ground on the back of speculation that the UK drug major could be eyeing an acquisition of the firm.

Meantime, on May 16, German drug developer MediGene's stock hit a 52-week high on speculation, reported by Seeking Alpha writer Eben Tessari, that it was in discussions with Pfizer.