Today 4:21 AM ET (MarketWatch)
By Jonathan D. Rockoff
Pfizer Inc. sought to raise the pressure on AstraZeneca PLC to enter talks on creating the world's biggest pharmaceutical company, as it separately reported declining quarterly results that underscored why it is interested in a tie-up.
Pfizer (PFE) has been pursuing its British rival since November, but AstraZeneca (AZN) has rejected the advances. Last week, AstraZeneca said Pfizer's most recent cash and stock proposal valued at 50 pounds, or $84, a share "substantially" undervalued the company.
In an interview on Monday, Pfizer Chief Executive Officer Ian Read disagreed, calling the company's offer to AstraZeneca "compelling" and urging the U.K.-based company to enter talks.
"I'm hoping they will come back into discussions, but we are reviewing our options," he said.
Read agreed that Pfizer's options include walking away from a potential deal and even looking for a different one, though he argued that a combination would benefit both companies and their shareholders.
A tie-up would put the combined company in a better position to deal with increasing reimbursement pressures and "allow us to be more successful commercially than either company alone," he said.
The Pfizer CEO said his talks with AstraZeneca shareholders suggest they are open to doing a deal and want to discuss the terms further.
Frank D'Amelio, the U.S. drug company's chief financial officer, said Pfizer is willing to adjust its latest offer, including the proposed mix of 32% cash and 68% stock, but "we want to engage with AstraZeneca" and look at its books.
In a call with investors and analysts, Read said Pfizer was bidding for AstraZeneca out of a position of strength, as sales of new products like rheumatoid arthritis pill Xeljanz and anticlotting agent Eliquis pick up steam.
Yet the company's first-quarter results showed the extent of Pfizer's difficulties in finding new growth after top-selling products like the cholesterol fighter Lipitor lose patent protection.
An extended version of this report can be found at WSJ.com
-Jonathan D. Rockoff; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 06, 2014 04:21 ET (08:21 GMT)
Copyright (c) 2014 Dow Jones & Company, Inc.
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