AZ News from The Street 2014

It seems Pfizer Inc.’s (NYSEFE) attempts to woo AstraZeneca (NYSE:AZN) have failed, as AstraZeneca has rejected an offer from the world’s largest pharmaceutical company, according to a report from The New York Times. Had the merger gone through, it would have been one of the largest pharmaceutical industry mergers in recent history, surpassing Pfizer’s previous $90 billion takeover of Warner Lambert.

Analysts are divided about whether AstraZeneca would have benefitted from a potential acquisition by Pfizer. London-based AstraZeneca is hoping to grow on its own, and Pfizer has sometimes found major acquisitions to be more distracting than helpful.

The New York Times reports that AstraZeneca’s board viewed Pfizer’s approaches as “ill-timed,” and with too small of a takeover premium.

Analysts say they expect Pfizer to approach AstraZeneca a second time, although it’s possible the company, worth about $87 billion, could decide to merge with another, similarly sized company, such as Amgen Inc. (NASDAQ:AMGN), in an effort to avoid Pfizer. Analysts at Albert Fried & Co. say Dublin-based Shire (NASDAQ:SHPG) would be their pick for such a merger, and others have suggested Bristol-Myers Squibb Co. (NYSE:BMY) as more suitable merger candidate for Pfizer.

 

monday 4/21
http://video.foxbusiness.com/v/3490866975001/101b-astrazeneca-deal-happening/#sp=show-clips

 

Typical Fox business news analysis:

Everything is all Obama's fault.

 

Isn't it?

 

Yeah, I would much rather listen to a CNN or MSNBC anchor cry racism.

 

3:54 am AstraZeneca misses by $0.03, reports revs in-line (AZN) : Reports Q1 (Mar) earnings of $1.17 per share, $0.03 worse than the Capital IQ Consensus Estimate of $1.20; revenues rose 0.5% year/year to $6.42 bln vs the $6.36 bln consensus.

 

It looks like sales numbers are already rolling over the cliff.

 

AstraZeneca's Q1 Profit Falls 11% Despite Strong Diabetes Drug Growth
By Sean Williams
April 24, 2014


Just days after rumors swirled about a possible takeover offer, global pharmaceutical giant AstraZeneca (NYSE: AZN ) reported its first-quarter results very early this morning, delivering modest top-line growth but seeing its profits shrink notably.

For the quarter, AstraZeneca delivered revenue growth of just 0.5% to $6.42 billion, however this included a greater than 2% negative effect from unfavorable currency movements. Within the U.S., revenue jumped 3%, aided by an 8% improvement in Crestor sales as well as the full recognition of its diabetes franchise having completed the purchase of its previously unowned stake from Bristol-Myers Squibb (NYSE: BMY ) in early February. Also notable were sales gains from Brilinta, Byetta, and Bydureon which improved 94%, 86%, and 196%, respectively, from the year-ago quarter.

On the flip side, AstraZeneca did note that patent expirations negatively affected revenue by roughly $150 million. This includes previous blockbuster Seroquel and Arimidex, whose revenue fell by double-digit percentages year-over-year.

Based on geographic breakdown, China, emerging markets, and the U.S. were AstraZeneca's bright spots with revenue rising 26%, 7%, and 3%, inclusive of negative currency effects, while established rest of world revenue (i.e., not the U.S. or Europe) dipped 11% and European revenue slipped 1%.

Despite delivering modest top-line growth, an 8% increase in selling, general, and administrative expenses and a 15% jump in cost of sales pressured AstraZeneca's profit for the quarter. In sum, the company reported $1.17 in core EPS, which was down 11% from the prior year in a constant exchange rate environment.

Looking ahead, AstraZeneca maintained its previously issued full-year guidance and announced in a research and development update that its pipeline now contains 104 ongoing projects, of which 90 are currently in the clinical phase of development.

 

April 25, 2014 10:36 am

AstraZeneca shareholders mutiny over executive pay plans

By Norma Cohen

Shareholders at AstraZeneca have revolted against pay proposals for top executives, with more than 40 per cent declining to support the pharmaceuticals company’s remuneration plan at its annual meeting.

The vote on Thursday to approve the policy was carried by 58.13 per cent of shareholders, compared with more than 70 per cent who voted on every other initiative. Roughly 30 per cent of shareholders did not vote.

Pascal Soriot, chief executive, has faced criticism from institutional investors for collecting more than £3.3m in salary and bonuses last year despite a fall in sales and a drop of nearly a quarter in profits.

This week Mr Soriot set out a manifesto for AstraZeneca’s continued independence by announcing the possible sale or spin-off of non-core units following speculation over a $100bn takeover by Pfizer.

The French chief executive of Britain’s second-biggest pharmaceuticals group by market capitalisation said the future of its neuroscience and anti-infection businesses was under review and he hoped to announce news “in the near future”.

 

CNS is pfucked

 

It looks like CNS will be filling open territories and absorbed in other divisions. I don't see us being let go since we are the elite sales force.

 

I am sure this is sarcasm. Right?

 

This latest stock price premium that is being priced in the stock pre-market today says that this deal is all but done.

AstraZeneca PLC (AZN)-NYSE
Pre-Market : 79.97 Up 11.32 (16.49%) 8:48AM EDT

 

Pfizer's price is up a little bit as well today. That is a sign that "The Street" favors the completion of this deal. All of the stars are aligned now. This purchase is nearly complete at this point, only the very final negotiations are left to tie up for better or worse.

 

I'm not with Pfizer or AZ, but I've been in this industry for more than three decades. I've survived several nasty takeovers more by luck than anything else. The BS is always the same up until the very end.

"Keep working your territory and making your calls. Business as usual"
"You know as much as we know at this point."
"Focus on the things you CAN change."
"We plan to be completely transparent through this process."
"This new alliance will present some exciting new opportunities in career advancement."

Virtually everyone I knew who got cut over the years went on to find good jobs. Some found fantastic, much better paying jobs. It's not much fun to go through this whole process. You'll be OK in the end. Good luck to all.

 

Also in the industry for 30 years. Can honestly say I've heard everyone of these lines. Sad what this industry has become. It used to be great. Good luck to everyone-like the poster said, it won't be fun- but you will be okay and probably much happier in a few years.

 

The only people who should really be upset are the corporate people who have been making six figure incomes and handing out whippings for entertainment. The rest of us who have been at the end of that whip and justified the pain for the pay, will realize how much we gave up for that paycheck. Happiness,security, dignity, self respect, honesty, integrity, we now have a chance to get it all back again.

 

Imagine how many hours the managed care crew of thieves and degenerates have spent on the phones and social media trying to find out what is going on. You can bet that Pfizer doesn't need or want them. But, what about our terrific relationships? Guess what, they have better relationships. I just hope they do an audit before exiting these clowns to expose the waste and corruption that has been going on for years. I heard that some Wyeth people were prosecuted after being let go.