Analysts want AstraZeneca-AbbVie tie-up

pharmafile | June 20, 2012 | News story | Sales and Marketing AbbVie, Abbott, AstraZeneca, merger 

Analysts want Abbott’s new spin-off firm AbbVie to merge with the troubled AstraZeneca, saying it could give both firms future value.

AbbVie will be the new R&D firm coming from Abbott’s split into two new companies, and is scheduled to go ahead within the next year.

The firm will rely on its Humira brand in the short-term – which will become the world’s biggest selling drug this year – but could need more to beef-up its future prospects when the auto-inflammatory treatment goes off patent. 

This is where AstraZeneca could come in – the Anglo-Swedish firm has had a torrid 18 months, with notable pipeline failures and nervy shareholders leading its chief executive David Brennan to be ousted from the firm in April.

AZ’s future is shaky and Brennan’s departure has only heightened speculation of a mega merger – and analysts now believe this should come from a deal with AbbVie.

Liberum analyst Naresh Chouhan said: “Although perhaps difficult to engineer, our best case scenario for AstraZeneca to get themselves out of the position they are in would be to engage in a merger of equals with AbbVie.

“Without the need to pay a premium, we believe the $4 billion or so of synergies would create $50 billion of value and the chief executive void at AstraZeneca will make it easier to agree on a deal.”

This is not the first time analysts have suggested a merger, and last year a Jefferies Group analyst said that Roche, Bayer and Merck are the three firms most likely to go for an acquisition – although these now seem to be out of the rumour mill.

Speculation will continue to flourish, but AstraZeneca’s new chairman Leif Johansson said his focus is on finding a new leader for the firm, and is yet to publicly speak about any potential mergers.

Ben Adams

Related Content

AbbVie invests €150m in new R&D facility in Germany

AbbVie has announced that it is investing approximately €150m in its second largest research and …

AstraZeneca shares positive interim results from phase 3 lymphoma trial

AstraZeneca has announced positive high-level results from an interim analysis of the ECHO phase 3 …

ANGLE signs commercial agreement with AstraZeneca

ANGLE has announced that it has signed a supplier agreement with AstraZeneca for the development …

Latest content