Pfizer Abandons Their Attempt To Takeover AstraZeneca After Being Rejected

When it comes to pharmaceuticals, there are two companies that stand out above the others: is Pfizer and AstraZeneca. For a while now, Pfizer has pursued their British rival, mostly to overcome aging pipelines and market pressures.

According to a report by USA Today, Pfizer dropped out of their pursuit for a takeover last Monday. The announcement came after a week when AstraZeneca’s board rejected Pfizer’s buyout proposal of $119 billion, the world’s second-largest drugmaker by revenue. Pfizer had until 5 p.m., London time on Monday, to extend a firm offer to AstraZeneca or declare intent not to do so. Underneath U.K. law, Pfizer now cannot make another offer for six months, although the company can do so as soon as 90 days if AstraZeneca invites another offer.

There is some good news that comes from this. Thousands of jobs at AstraZeneca in Deleware are now safe. Governor Jack Marshall had this to say about both Pfizer and AstranZeneca, as well as their deal fallout:

“AstraZeneca and Pfizer are both great companies in an industry that provides many good jobs and we wish them the best moving forward. We hope news brings some more certainty to the Delewareans employed by AstraZeneca and remain committed to having a strong bioscience sector in our state.

However, in a second article by the Wallstreet Journal, both Pfizer and AstraZeneca will both be on a rocky path from this day forward until they can reassess themselves. Pfizer need to win approval for promising risky drugs in development, something that was brought into light in a report by The Inquisitr, when Pfizer had to recall the drug Effexor for latent drug contaminations, though it was more an issue of accidentally mixing drugs.

As for Pfizer, they will need to look for deals to strengthen their core areas: vaccines, cancer, inflammation, heart disease, and pain. Pfizer was open to other transactions of any size but now that their merger dealings are no longer in the forefront, Pfizer needs to improve on their strengths.

In the end, Pfizer will attempt to acquire AstraZeneca because they need new avenues to grow. Charles Edson, the director of the University of Deleware’s Weinberg Center for Corporate Governance, had this to say about Pfizer’s merger:

“The mergers and acquisitions game is a very long dance. Once they’ve (Pfizer and AstraZeneca) established something like this and put this much effort into it, they seldom just walk away. If a year from now nothing has happened, then maybe we can start to say it’s over. But not now.”

[Image via Pfizer]