Astrazeneca Share Discussion Threads

[steeplejack] 14/12/2020 08:03

Sadly you're right Turvart.

[montyhedge] 14/12/2020 08:01

Certainly paying a lot.

[steeplejack] 13/12/2020 21:29

https://fortune.com/2020/12/13/astrazeneca-acquires-rare-disease-specialist-alexion-in-39-billion-deal/

[steeplejack] 13/12/2020 18:42

"Other big drug­mak­ers have paid up to en­ter the rare-dis­ease drugs mar­ket. Most re­cently, in 2018, Takeda Phar­ma­ceu­ti­cal Co. agreed to buy Shire for $62 bil­lion. In 2017, John­son & John­son agreed to buy Acte­lion for $30 bil­lion." Wall St journalAt least ,AZN are beating a fairly popular path as observed by the Wall St Journal.

[turvart] 13/12/2020 18:36

Well I hope I'm wrong and AZN comes up tomo!

[steeplejack] 13/12/2020 18:25

We'll see.They're are some worrying parallels where the predator sells off sharply initially on the announcement of such big deals because,in reality,only time will tell.

[turvart] 13/12/2020 18:02

This is my point how are AZN going to raise the $60 part of the deal? Issue more bonds?

I'm sorry but I for one don't see anything positive about this deal, they need to raise money from somewhere? AZN M/cap is approx 107 BLN but they put a bid in for 39 BLN? You can talk this up as much as you like but this is a total disaster IMO.

[steeplejack] 13/12/2020 17:58

AstraZeneca's said its cash-and-stock agreement amounts to $175 per Alexion share, based on the one-month average value of AstraZeneca's U.S.-traded American depositary receipts. The offer is split between $60 in cash and 2.1243 American depositary shares

Two thirds equity then.

[steeplejack] 13/12/2020 16:06

You can never be sure with the markets.There’s a number of factors including how sterling behaves in the next few days on the latest Brexit moves.On the perceived ‘negative̵7; side acquiring Alexion will make AZN pretty immune to takeover so the “Pfizer bid factor” will be a thing of the past.It is already really.The level of debt which the group is taking on will be of concern and the prospect that Alexion shareholders might decide to sell the AZN shares they receive albeit those concerns are nine months away when the deal completes.Really,it’s a question of whether you trust the managements judgement.If the market considers that the AZNs assumption of a 10% earnings accretive deal over a three year period to be erroneous,the shares will fall by perhaps £5 but if they accept the board’s rationale,the price will react favourably.The Alexion share price has been dull of late suggesting the market had not got wind of AZNs intentions but I suspect,ever since the Gilead discussions,the prospect of AZN making a corporate move has been anticipated.Whether a move of this description was ‘discounted217; ,we’ll find out tomorrow.If you don’t trust the board to make a good acquisition,then you shouldn’t be in the shares,it’s as simple as that.

[steeplejack] 13/12/2020 11:24

"Much of the public attention that AstraZeneca has received recently has surrounded its Covid-19 vaccine candidate, but it is unlikely to be a significant part of company sales for a long time. Alexion is far more material. AstraZeneca expects the deal to increase earnings per share by at least 10% over the next three years. The company also said that the acquisition "supports" its "progressive dividend policy," signaling a higher payout eventually."The AZN price is likely to go up.The deal would be earnings accretive and even if a third party gate crashes the party,there's a break fee of over a billion that could come Astra's way..

[beckers2008] 13/12/2020 11:14

H,
Don't you think they would already done that!!!!

[alphorn] 13/12/2020 10:57

A subject to investigate further and update on a winter's evening - the treatment in the financials of bought in R&D versus R&D spent by the company. I am sure will be illuminating.

[turvart] 13/12/2020 10:54

I wonder how the market are going to take this? usually the company making the bid the share price goes down, hope not but that is usually the case.

[beckers2008] 13/12/2020 10:42

H,
Don't you think they have done it already!!!

[holts] 13/12/2020 08:04

Their due diligence checks better be up to scratch .

[ayl30] 13/12/2020 07:10

https://www.thetimes.co.uk/article/astra-zeneca-buys-us-rare-diseases-rival-alexion-for-39bn-grpc87xtf?shareToken=d5d9f18d3df9685273a40fbfc763da1c

[philanderer] 13/12/2020 01:10

That Alexion deal, if it goes through, will be the biggest in a long while in the pharma sector.

[freddie ferret] 12/12/2020 23:12

I have my doubts about teaming up with russia.

[buywell3] 12/12/2020 19:55

AZN to start trials using an additional vector from the Sputnik 5 vaccine before the end of the year


buywell predicted this would happen on BUY thread


buywell sees the very real possibility that Russia could become a free WTO partner of the UK if this co-operation carries through to success