Astrazeneca Share Discussion Threads

[philanderer] 14/12/2020 12:02

Astrazeneca shares slump on £29bn US deal: FTSE 100 firm will need £13bn bridging loan to finance blockbuster takeover of Alexion Pharmaceuticals


....It has decided to take out the $17.5billion (£13billion) loan to finance the deal, which is the largest acquisition in its 21-year history, and roll over Alexion's debt.

...Astra will refinance with medium-term bank loans, bonds and cash from trading.

[philanderer] 14/12/2020 11:58

AstraZeneca shares slump as investors stumped by $39billion bid for Alexion


Astra’s stock has also been under pressure amid questions over the efficacy of the potential Covid-19 vaccine being developed with Oxford University and the handling of late-stage trials. The teams believe chances of the shot being available by the end of the year remain “pretty high”.

Russ Mould, investment director at AJ Bell, said: “You would think AstraZeneca could do without any distractions as it looks to address some of the scepticism which has built up around the Covid vaccine.

“Alexon has failed to attract a suitor for some time, despite shareholder pressure, so investors might see AstraZeneca as a bit of a sap for pitching up with a 45% premium. It is also an immunology-focused business which will stick out like a sore thumb against the rest of AstraZeneca’s portfolio.

“Alexon also has expertise in rare diseases, adding to AstraZeneca’s range of capabilities, and its technology can be applied outside of its rare disease focus, though this a prospective long-term benefit which will take time to accrue.”

Neil Wilson, chief market analyst of markets.com, was more upbeat: “Whilst the 45% premium may seem high, it’s probably not that significant when you consider the sector and the cash flow generation and revenue growth. It’s a big turnaround from the dark days of six years ago when Pfizer tried to land AstraZeneca.”

The move is seen as a way for Astra to take Alexion’s specialist treatments into untapped countries, especially China, and has boosted confidence that Pascal Soriot, the CEO who has seen shares rise 87% since fending off Pfizer’s 2014 hostile takeover approach, is more likely to remain at the helm beyond a rumoured 2023 departure.

[montyhedge] 14/12/2020 11:43

I see 6800p on the cards. How they paying for this deal ?

[essentialinvestor] 14/12/2020 11:42

Nice out for Elliott Advisers.


The history of Pharma sector M&A is often value destruction,

however given what the CEO has achieved in the transformation of AZN,

perhaps deserves the benefit of any doubt.

[philanderer] 14/12/2020 11:41

I reckon if there was going to be a rights issue or placing it would have been announced along with this acquisition.

[montyhedge] 14/12/2020 11:37

If I was the boss, shares trading on a p.e 60, I would say ok let's cash in have a rights issue or placing.

[alphorn] 14/12/2020 11:35

The open question with rare diseases is 'what is the market size'? A sad but real question.

[montyhedge] 14/12/2020 11:35

No way will the US approve their vaccine without more data.But it's this deal, paid to much and how will they raise the money.

[turvart] 14/12/2020 11:34

I just topped up at 7638, lets hope we get some positive vaccine news.

[essentialinvestor] 14/12/2020 11:33

Unfortunately the vaccine hype train propelled AZN past £100 a share,

at that price it was well ahead of fundamentals.

And I'm not sure what people find difficult in understanding when

AZN say...we will supply our vaccine at cost.

COVID was never going to be goldmine financially. It buys some goodwill

and may help with other contacts or future research.

Yes AZN may be able to supply this at profit at some point, however we

could have 10-15 plus competing vaccines by then.

And just take a look at GSK, one of the largest vaccine makers globally,

their share price moribund for 2 decades.

[mayers] 14/12/2020 11:25

I think this may be an astute buy in the longer term, buying into the rare diseases area where expanding genomics are highly relevant but it will take time.

[essentialinvestor] 14/12/2020 10:47

Monty, thought you would be long here on that opening gap down.

Had a small amount near the open, if the yanks dump it may have a few more.

[smcni1968] 14/12/2020 10:03

Rallying back. Let's see what the US investors think in a few hours

[williamcooper104] 14/12/2020 09:58

Selling at a loss is a total illusion If you can put that money to work in something that will do better then you've sold at an expected profit

[gary1966] 14/12/2020 09:51

Share price reaction after the analyst presentation will be more telling in the short term.

[porsche1945] 14/12/2020 09:46

@ montyspecianeeds It’s “ too “ much not to, learn to spell.

Great buy from Astra and a cheap price, building superb foundations in oncology and rare diseases. Gsk hopeless by comparison.

[montyhedge] 14/12/2020 09:43

Sentiment could push this to 7200p, paying to much for this deal, also I reckon US will reject their COVID vaccine, more data will be required.

[bogman1] 14/12/2020 09:32

Gonna make it a big hitter in the pharmacy industry. It can repay the debt. The vaccine will be decent when they get there. I am looking at this as a buy opportunity..

[steeplejack] 14/12/2020 09:23

Short term,all the market sees is more debt and issuance of stock.Only later can it identify whether the acquisition has been a success.Personally,I think the acquisition is quite canny but only time will tell.

[philanderer] 14/12/2020 09:09

That's gone down like a bag of sick. Shareprice at 8 month low.

[hjs] 14/12/2020 08:59

Imo, market does not like this deal hence the mark down. It would not surprise me if it drops to 7400 before buyers come in.

[montyhedge] 14/12/2020 08:28

Well the market think they are. Looking at the shareprice.

[gary1966] 14/12/2020 08:20

Actually Monty they aren’t paying a lot and if you can be bothered to read, the information is very clearly laid out as to how they are paying for it.

[montyhedge] 14/12/2020 08:05

How they paying for it?