13th May 2014 11:18
LONDON (Alliance News) - AstraZeneca PLC hit back at US drugsmaker Pfizer Inc Tuesday, saying that it believes it is "making an opportunistic attempt to acquire a transformed AstraZeneca, without reflecting the value of its exciting pipeline."
The company noted Pfizer's statement Tuesday reiterating its eagerness to continue discussions with AstraZeneca, and its disappointment regarding AstraZeneca's reluctance to engage in talks on a potential takeover offer.
AstraZeneca rejected Pfizer's second approach earlier this month, an offer of GBP50 per share which would have valued AstraZeneca at GBP63 billion, saying it significantly undervalued its business. The company has appealed to shareholders not to take action, reiterating last Tuesday that it expects its revenue to return to 2013 levels in 2017, and expects revenues to more than double over the five years after that.
AstraZeneca said that Pfizer's statement "contained no new proposal nor substantive new information."
The Chief Executives of both companies, alongside representatives of trade unions, are providing evidence to the House of Commons' Business, Innovations and Skills Committee Tuesday.
Pfizer Chief Executive Ian Read confirmed that the total research and development spending of the enlarged company would likely be lower, and reiterated the company's commitments to maintaining 20% of its research and development staff in the UK.
Pfizer has been campaigning to UK lawmakers regarding a potential offer, including sending a letter to Prime Minister David Cameron on May 2 that included commitments to UK investment such as re-domiciling its business in the UK and completing AstraZeneca's R&D centre in Cambridge, alongside its commitment regarding the research and development workforce.
Both Chief Executives will also give evidence on Wednesday to the Science and Technology committee, alongside the Minister for Universities and Science David Willetts.
Shares in AstraZeneca were trading up 1% at 4,654.50 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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