Pfizer goes public, confirming pursuit of AstraZeneca

US pharma giant Pfizer (NYSE: PFE) this morning confirmed that it previously submitted a preliminary, non-binding indication of interest to the board of directors of Anglo-Swedish major AstraZeneca (LSE: AZN) in January 2014 regarding a possible merger transaction, which the UK-based firm declined to pursue and talks were discontinued on January 14 (The Pharma Letter April 20).

In light of recent market developments, Pfizer contacted AstraZeneca again on April 26 seeking to renew discussions in order to develop a proposal that could be recommended by both companies to their shareholders. AstraZeneca again declined to engage. Pfizer is currently considering its options with respect to AstraZeneca, but said it would only make a firm offer if AstraZeneca directors voted unanimously in favor of the deal.

Pfizer’s previous proposal made to the board of AstraZeneca on included a combination of cash and shares in the combined entity which represented an indicative value of £46.61 ($76.62)1 per AstraZeneca share and a substantial premium of around 30% to AstraZeneca’s closing share price of £35.86 on January 3, 2014. AstraZeneca closed at £40.80 on Friday, giving it a valuation of around £51.5 billion ($86.58 billion). The shares shot up 12.5% to £45.90 shortly after the London market opened today.