Pfizer's new drug of choice: Acquisitions
Latest deal gives firm the rights to
AstraZeneca pills
In its second deal this week, New York-based Pfizer said it's buying rights to AstraZeneca's portfolio of approved and experimental antibiotic and antifungal pills, a move to boost Pfizer's business in one of its priority areas. The deal is valued in excess of $1.5 billion, including rights to sell the medicines in most countries outside the U.S., royalties and other payments.
The acquisition indicates a thawing of relations between the two companies barely two years after U.K.-based AstraZeneca fought off Pfizer's hostile takeover attempt.
Pfizer had planned that $119 billion acquisition as a so-called “tax inversion” enabling Pfizer to slash its U.S. tax bill by moving its nominal headquarters — but not its corporate offices or executives — to England.
The tax inversion strategy had been hot in corporate America for a few years, but it's cooled down since the U.S. Treasury Department in early April issued new tax rules to block the biggest U.S. drugmaker from becoming a corporate citizen of Ireland as part of the Allergan deal.
Allergan is technically based in Dublin, but it's the result of a tax inversion merger and operates from Parsippany, N.J.
Under the deal announced Wednesday, AstraZeneca will receive an upfront payment of $550 million.
Pfizer will get rights to some medicines in development and approved ones including Merrem, for treating bacterial meningitis and serious infections of the skin and stomach; Zinforo, for pneumonia and complex skin and soft tissue infections; and Zavicefta, a combination antibiotic the European Union just approved for treating serious bacterial infections.
Luke Miels, the head of the antibiotics business unit at AstraZeneca, said in a statement the company is “pleased that our strong science in antibiotics will continue to serve a critical public health need through Pfizer's dedicated focus on infectious diseases.”
Pfizer's other recent deals include:
Pfizer shares ended down about 1 percent to $34.82 on Wednesday.