http://seekingalpha.com/news/2383176-astrazeneca-may-again-become-a-takeover-target-if-growth-fails-to-materialize?source=feed_news_healthcare_cafepharma Here we go again
AstraZeneca may again become a takeover target if growth fails to materialize Mar 20 2015, 13:02 ET | About: AstraZeneca Group plc (AZN) | By: Douglas W. House, SA News Editor According to Bloomberg, AstraZeneca's (AZN +2.6%) previously stated plan to increase revenue 75% by 2023 is looking a bit wobbly. In cancer, for example, it trails three competitors in immunotherapies for lung cancer. The FDA approved Bristol-Myers Squibb's (BMY +0.2%) Opdivo for the indication on March 4. AZN's candidate, MEDI4736, is still in clinical development with an NDA filing on tap for next year. Being late to the party means modest sales unless there is a profound advantage, something that MEDI4736 may not have unless combined with other drugs. If the company's sales growth fails to ramp, its valuation could slump and encourage another takeover bid. AZN currently sports a P/E of 79 versus the industry average of 25 (per msn money). Last year, CEO Pascal Soriot fought off a $117B bid from Pfizer (PFE +0.2%) telling investors that the firm could increase revenues to $45B by 2023. The company remains bullish, though. Spokesperson Esra Erkal-Paler says that the firm is making significant progress and that oncology drugs could represent 25% of sales by 2023, up from 12% in 2014. It is currently running clinical studies of AZD9291, a non-immune therapy, in lung cancer patients with a specific mutation who have relapsed after prior treatment. If it can beat rival Clovis Oncology (CLVS -2.4%) to the market, it could be worth as much as $3B per year. Mirabaud analyst Nick Turner says that even if all the drugs in the pipeline make it to the market, AZN will have to stretch to reach $45B in 2023 because two of its biggest sellers, Crestor (ttm sales=$5.5B) and Nexium (ttm sales=$3.7B), face declining sales from the loss of patent protection.
The US is closing the window on the tax matter that motivated PFE to move on London-based AZN. If you believe in miracles, lightning hitting the same place twice, the pot of gold at the end of the rainbow, then hold out for another bid in the galaxy of what Pfister offered. The realists out there know that will not happen. AZ will be bought, but instead of taken over, she will be taken under. I predict it will happen at less than 1/2 of what PFE offered. The executives don't care -- no matter what, they get a golden parachute out.
Yep, the French Shit fucked up big time turning Pfizer's bid! Now, our cancer pipeline is looking shaky! Why can't we get rid of the lunatic known as Pascal?
Sell your stock if you're holding any. Control what you can. Pascal will retire to an island one day soon no matter what. He and the rest of his deputies are looking out for #1. Face it.
Who'd have thought, when Lars was humpty dumpty: http://communityadvocate.com/2014/12/12/astrazeneca-to-close-westborough-facility/ Today there's another one whom all the king's horses and all the kings men...
AstraZeneca to close Westborough facility By Bonnie Adams, Managing Editor AstraZeneca has announced it will be closing its 50 Otis St. location in late 2015. Photo/Bonnie Adams AstraZeneca has announced it will be closing its 50 Otis St. location in late 2015. Photo/Bonnie Adams Westborough – AstraZeneca has announced that it will be closing its facility located at 50 Otis St. at the end of 2015. As a result, 180 employees will be losing their jobs. AstraZeneca is also Westborough’s top taxpayer. According to the Town Assessor’s office, the company paid just over $3 million in taxes in fiscal year 2013. Once one of the area’s most prominent pharmaceutical companies, employing nearly 900 employees between its plants in Westborough and Waltham, Astra Zeneca has been reducing staff over the past decade, with prior layoffs occurring in 2009 and 2011. AstraZeneca was formed on April 6, 1999, according to its website, “through the merger of Astra AB of Sweden and Zeneca Group PLC of the UK – two companies with similar science-based cultures and a shared vision of the pharmaceutical industry.” Westborough officials noted they were disappointed with the news but still hopeful that a different company would be interested in purchasing or leasing the property, with its distinctive glass pyramid building once Astra Zeneca moves out. “Astra Zeneca has had a large presence in the community since the 1980s and at one time had been a large employer and continues to be a large taxpayer in the community. While their employee base at 180 employees now is less than it has been in the past, there is still a concern for those employees that are losing their jobs,” Town Manager Jim Malloy said. “We’ve had discussions with Astra over the past year and assured them we will work with them as much as possible to help facilitate a new owner of the property.” “Westborough was fortunate to be home to Astra Zeneca for many years, and we are grateful for the many significant contributions the company made to organizations in our community including supporting our schools through donations, and the Corridor Nine Area Chamber of Commerce through sponsorships,” Deborah Penta, the chair of the Westborough Economic Development Committee said. Local officials are hoping, she added, that the recent initiative that the town has made towards supporting businesses seeking to expand in or move to Westborough will work favorably in helping the town attract another tenant. “With many companies expressing interest in, and for those continuing to grow and expand in Westborough, we are optimistic that additional opportunities for local employment will be created over the next year,” Penta said. “The Astra Zeneca property presents a great opportunity to bring a new business to Westborough that will enhance our local economy and the EDC is looking forward to helping build awareness of this real estate gem to a potential organization considering a move or expansion to our community,” she added.
I am thinking Flea Market or Adult Center for the elderly. This place is a dump and who the fuck would want to live in that area anyway? Maybe the community should have considered the exhorbitant taxes if they were concerned about people losing their jobs. Nobody can make it any longer in socialist Massataxes.
Leave it to you to think that this plant closing should be some kind of a teapublican talking point. The products that were being made at that plant have expired patents and are being sold off. Why didn't they build the plant in Mississippi where the taxes are low? Because you need an educated work force to do this kind of work not just a bunch of dumb teapublicans like you. Race to the bottom, you first!!
True. The big rats are trying to make AZ look like a good purchase by hiding Farxiga revenue info. The NRX trend looks great. Until someone realizes all those RX's were given away for free. Smoke and mirrors to get a good price for the rats in charge.
PFE wanted AZN for the tax break, nothing more. Now the US Gubmint has closed the loophole. The stock is going off a cliff soon. Sell now. You are going to be cut in 1/2 in a day's trading, there is no catching a falling knife. It will be ugly soon.
Old Lord Frenchie and his English co-conspirators better be on guard. Feeling like a Braveheart opportunity? How close are you to the 331 to 1 Mr. Soriot? I wonder if these blokes ever heard of the French revolution? “A global Harvard Business School survey found that most people think pay gaps are far smaller than they are. That was particularly true in the U.S., where survey respondents thought the ratio of CEO to average worker pay was 30 to 1; they put the ideal ratio at 7 to 1. “ In actuality it’s 331 to 1.
