6th May 2014 10:33
LONDON (Alliance News) - British drugs company AstraZeneca PLC Tuesday set out its defence against a GBP63 billion takeover offer from US rival Pfizer Inc, urging its investors to be patient because it is set to grow quickly after it invests in its piepline and transforms the company over the next few years.
The company, which Friday rejected the US company's latest informal GBP50-a-share offer, reaffirmed that its revenue in 2017 would be broadly in line with the USD25.71 billion it reported in 2013. However, it expects revenue to more than double over the following five years, reaching more than USD45 billion by 2023. It said core earnings will grow at an even faster rate over the same period as it restructures and cuts costs.
"The increasingly visible success of our independent strategy highlights the future prospects for our shareholders. These are benefits that should fully accrue to AstraZeneca's shareholders," Chairman Leif Johansson said in a statement.
AstraZeneca has been struggling in recent years as it was hit by several of its best-selling drugs coming out of patent protection. Revenue and profit slid as generic versions of the drugs came to market, and the company failed to add significant new big sellers to its pipeline.
AstraZeneca said it will accelerate the development of key developmental drugs it has in phase II and phase III trials, as it set out why it should remain independent.
Its statement Tuesday was focused on the recovery of its pipeline. It said scientific discoveries have been accelerated to extend the late stage pipeline, it has made progress on its cancer drug pipeline, had several drugs in mid-stage development showing significant promise and has 19 new molecular entity candidates set to start trials in 2014/15.
AstraZeneca Friday rejected Pfizer's latest approach because it would "dramatically dilute AstraZeneca shareholders' exposure to our unique pipeline and would create risks around its delivery".
In a clear rebuff to Pfizer's valuation of the company, it said Tuesday that the aggregate risk-adjusted pipeline peak year sales potential is around USD23 billion, while the non risk-adjusted pipeline peak year sales potential was around USD63 billion.
"AstraZeneca is completing its transformation, and now has the right size, focus and team to deliver on one of the most exciting pipelines in the pharmaceutical industry," Chief Executive Pascal Soriot said. "We are continuing to create significant value for shareholders from our independent strategy."
AstraZeneca shares were down 2.4% at 4,691.2123 pence Tuesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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