astrazeneca alexion deal details
It also expects around $650 million in one-time cash costs during the three years following completion. AstraZeneca said it expected the deal to immediately boost core earnings and to deliver pretax synergy gains of around $500 million per year. The deal comes in a week that AstraZeneca said it was conducting further research to confirm whether its Covid-19 vaccine could be 90% effective, potentially slowing its rollout, and as a rival shot from Pfizer was launched in Britain and approved for use in the United States. Die Alexion-Aktionäre erhalten davon 60 Dollar pro Papier in bar und je 2,1243 Astrazeneca American Depositary Shares (ADS). According to the company’s press release, there are over 7,000 known rare diseases, yet only ~5% have FDA-approved treatments, representing massive potential upside. The acquisition comes at a time when capital markets activity is booming, and treasury rates are near 0%, allowing for strong investment-grade firms such as AstraZeneca to access capital at incredibly low rates, likely comprising part of the rationale behind the acquisition and its timing. On AstraZeneca's Covid-19 vaccine, Soriot said it wasn't yet clear if the company would need results from a U.S. clinical trial before filing for approval with U.S. regulators. Only after 80 days since the deal being announced, the $39bn acquisition of Alexion by AstraZeneca is now complete. That had led it to be seen as a possible bid target. AstraZeneca, one of the frontrunners in the drugs industry’s search for a COVID-19 vaccine, said on Saturday that Alexion shareholders would receive $60 in cash and 2.1243 AstraZeneca … AstraZeneca's $39 billion bombshell deal for Alexion triggered plenty of questions—and a quick market selloff. With a planned capital increase of about $25 billion after the deal closure, Soriot is looking to harness a strong advance by AstraZeneca stock, driven by the stellar growth of new cancer drugs. AstraZeneca. The acquisition allows AstraZeneca to enter the rare-disease therapy market as an instant leader. AstraZeneca has long been a leader in treatments for respiratory disease, but sales have stagnated. The company would also have to pay AstraZeneca up to $1.2 billion to walk away from the deal. By Michael J. de la Merced. Projections suggest AstraZeneca will benefit from a $6bn revenue boost from the acquisition, and the drugmaker expects that figure to grow by 9% a year through to 2023. AstraZeneca to acquire Alexion in $39bn deal, “Alexion has established itself as a leader in complement biology, bringing life-changing benefits to patients with rare diseases… This acquisition allows us to enhance our presence in immunology” - AstraZeneca CEO Pascal Soriot. Assuming positive results from that trial, the company should be able to submit the vaccine to U.S. regulators within the next six weeks, he added. Soliris and Ultomiris, Alexion’s flagship drugs, are both treatments for rare blood disorders. While the subset of patients taking these is quite small, the drug treatments run patients several hundred thousand dollars annually, bringing in significant revenue. Hedge fund and activist investor Elliott Management has urged Alexion to seek a buyer and in May spoke out publicly. That being said, the combined company will be able to scale significantly, thereby reducing costs and thus operating in a more efficient manner. Alexion's leading expertise in complement biology will accelerate AstraZeneca's growing presence in immunology. Alexion thought it was buying a $1 billion plus drug annually, but revenue ended up about a … Ultomiris, an improved version, is set to take over — in Q3 of FY2020, Alexion reported that more than 70% of patients in their leading markets, the US, Japan, and Germany, had switched from Soliris to Ultomiris, an incredibly promising development. The acquisition comes at a time where AstraZeneca has seen a massive amount of publicity due to their development and planned distribution of an affordable Covid-19 vaccine in coalition with Oxford University. Elliott first invested in Alexion in 2017 when the share price was only slightly lower than Friday's close of $120.98. "It is a tremendous opportunity for us to accelerate our development in immunology, getting into a new segment of disease, a new segment of physicians, and patients we haven't been able to cover so far," AstraZeneca Chief Executive Pascal Soriot told a media call. AstraZeneca ( AZN) and Alexion ( ALXN) $39bn merger information including expected completion date, offer price and contact details are displayed in the acquisition details table below. Soliris, an established drug, brought in nearly $4bn in sales in FY2019. A Division of NBCUniversal. Founded in 1999, AstraZeneca is a global leader in the pharmaceutical industry conducting major research into areas such as cancer to cardiovascular diseases. AstraZeneca is still on track to finish acquiring Alexion in the third quarter, Wedbush's Chico said. © 2021 CNBC LLC. Expanding into the more lucrative specialty care market has been a strategic priority for AstraZeneca. AstraZeneca to Buy Alexion Pharmaceuticals for $39 Billion Alexion shareholders will receive a big premium in a combination of cash and AstraZeneca stock. The deal gives AstraZeneca access to Alexion's suite of treatments for rare diseases. Market sentiment is that the offer of $175 a share for Alexion, a 45% premium on the current share price may have been excessive, especially since AstraZeneca had to take out a $17.5bn bridge loan to finance the deal. Got a confidential news tip? Cory Renauer AstraZeneca remains optimistic: a December 12 press release reported that stronger margins and cash flow will “enable rapid debt reduction.” S&P recently upgraded the outlook on AstraZeneca’s long-term debt to positive. Through the acquisition, AstraZeneca ventures into the lucrative space of immunology and rare diseases. Dec. 12, 2020. Founded in 1992, headquartered in Boston, Massachusetts. Canada and Mexico have lagged far behind the U.S. in terms of vaccinations. "Alexion has established itself as a leader in complement biology, bringing life-changing benefits to patients with rare diseases. Buying Alexion allows AstraZeneca to significantly expand and diversify their cash-flows in the short-term. Britain's AstraZeneca has agreed to buy U.S. drugmaker Alexion Pharmaceuticals for $39 billion in its largest-ever deal, diversifying away from its fast-growing cancer business in a bet on rare-disease and immunology drugs. Get this delivered to your inbox, and more info about our products and services. The biggest deal yet for AstraZeneca would allow the UK Pharma Giant to expand their expertise past Oncology and into other areas such as Immunology. LONDON — The drug maker AstraZeneca agreed on Saturday to buy Alexion, a biopharmaceutical company, for $39 billion in … Details Of Alexion’s Takeover By AstraZeneca The transaction is expected to conclude in the third quarter of 2021 with Alexion’s shareholders retaining 15% ownership of the combined entities. NSE 0.01 % has agreed to buy U.S. drugmaker Alexion Pharmaceuticals for $39 billion in its largest ever deal, diversifying away from its fast-growing cancer business in a bet on rare-disease and immunology drugs. It has a history of questionable deals, among them spending $8.4 billion on Synageva in 2015. Soriot also told reporters the deal was the result of exclusive talks and no competitive bidder was involved. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. In connection with the Transaction, AstraZeneca intends to file a registration statement on Form F-4 with the United States Securities and Exchange Commission (SEC), which will include a document that serves as a prospectus of AstraZeneca and a proxy statement of Alexion, Alexion intends to file a proxy statement with the SEC and each party will file other documents regarding the proposed … As a result, the firm’s free cash will go towards paying debts rather than funding new ventures. Based on a reference average ADR price of $54.14, that implies a total price of $175 per share. Analysts believe that this is part of a broader strategy aimed at increasing R&D spending, debt reduction, and a dividend increase. AstraZeneca (AZN) and Alexion (ALXN) Merger. The British firm said the boards of both companies had approved the deal, which is expected to close in the third quarter of 2021. AstraZeneca hopes that an improved version of Soliris called Ultomiris has even larger market potential. Sign up for free newsletters and get more CNBC delivered to your inbox. (AZN.L, AZN) agreed to buy Alexion Pharmaceuticals Inc. (ALXN) for $175 per share in cash and stock, valuing the Boston-based company at $39 billion.The deal comes amid AstraZeneca … All Rights Reserved. Projections suggest AstraZeneca will benefit from a $6bn revenue boost from the acquisition, and the drugmaker expects that figure to grow by 9% a year through to 2023. The shares have climbed about 70% through the past three years. Ludwig Hantson, CEO of Alexion who had been under pressure by activist investors to find a deal for the company, called the news “the start of an exciting new chapter for Alexion.” “We bring to AstraZeneca a strong portfolio, innovative rare disease pipeline, a talented global workforce and strong manufacturing capabilities in biologics. More. AstraZeneca stock has the potential to push above $61 per share, aided in part by the drug maker's pending buyout of Alexion, says Jefferies. We want to hear from you. Despite generating billions in cash from treatments such as Soliris, one of the most expensive drugs in the world costing hundreds of thousands of dollars per patient, Alexion shares have struggled in recent years as investors have worried about competition heating up. The company expects pre-tax synergies upwards of $500mn, in addition to a one-time cost of $650mn associated with the integration of Alexion. Now read: Roche scoops up COVID test maker GenMark for $1.8B Comments (1) This deal is good news for AstraZeneca shareholders who could use some given recent bad news on its Covid-19 vaccine. Nevertheless, servicing debt and dividends will remain priorities rather than funding an already weak pipeline of potential products. A precursor cash call, on a much smaller scale, was a $3.5 billion issue last year to fund the purchase of rights to cancer drug Enhertu from Daiichi Sankyo. Jede ADS verbrieft wiederum eine halbe Stammaktie von Astrazeneca. AstraZeneca was once seen as leading the race to develop a Covid-19 vaccine, but has fallen behind Pfizer and its partner BioNTech, as well as Moderna, whose shots have shown greater efficacy in late-stage clinical trials. If biology isn't really your thing, an overactive complement system might not sound … The deal would combine two companies working in very different areas of drug research, with Alexion focused on rare diseases and AstraZeneca mostly invested in medicines for cancer, diabetes and respiratory conditions. The United States plans to send roughly 4 million doses of the AstraZeneca COVID-19 vaccine that it is not using to Mexico and Canada through loan deals … The company Alexion also carries out significant research into autoimmune diseases and other areas of immune system research. Saturday’s deal by AstraZeneca to buy Alexion Pharmaceuticals brings a franchise in rare immune disorders to Astra, while also bringing to a close a … Data is a real-time snapshot *Data is delayed at least 15 minutes. It is best known for its blockbuster drug lidocaine, a drug used for local anaesthetic. Alexion shares closed at around $121 apiece on Friday. On Saturday, AstraZeneca announced plans to acquire Alexion Pharmaceuticals for just shy of $40 billion. AstraZeneca has agreed to buy rare-disease specialist Alexion Pharmaceuticals for $39 billion. Alexion would pay AstraZeneca a fee of up to $1.2 billion if it completes a deal with another buyer. It expects more growth from introducing the target's rare-disease treatments to China and other emerging markets. There are some analysts however who question the strategic rationale of the deal, citing some longer-term risks with expiring patents. AstraZeneca finance chief Marc Dunoyer said a capital increase for the equity component of the transaction would take place on the closure of the deal. Alexion shareholders will receive $60 in cash per share plus the equivalent of about one AstraZeneca share — the deal works out to a total of $39 billion or around $175 per Alexion share. AstraZeneca risks going from hero to zero with Alexion deal Drugs giant has been riding high on the FTSE, but its bid for Alexion could deflate Pascal Soriot’s status in the City AstraZeneca Plc agreed to buy Alexion Pharmaceuticals Inc. for $39 billion in cash and shares, adding a specialist in the treatment of rare diseases and … The British company said on Saturday that Alexion shareholders would receive $60 in cash and about $115 worth of equity per share — either in AstraZeneca's U.K.-traded ordinary shares or in dollar-denominated American Depositary Shares. AstraZeneca to Buy Alexion for $39 Billion to Expand in Immunology. The company, whose balance sheet was strained by over $22B in debt, is seeking a bridge loan in the amount of $17.5B to fund the transaction. The acquisition will be immediately core earnings-accretive and value-enhancing, and is aligned with stated capital-allocation priorities. The complement cascade is pivotal to the innate immune system. Details: The deal comes in the form of a loan, with the U.S. sending doses to Canada and Mexico now with the expectation that they will return doses to the U.S. later this year. Founded in 1999, headquartered in Cambridge, United Kingdom. Recall Dec. 12, AstraZeneca to acquire Alexion bulking up rare disease portfolio in a deal valued at $39b. The flagship drugs will seriously increase AstraZeneca’s top line, as well as diversifying the pharmaceutical giant’s revenues beyond their oncology and primary focus. AstraZeneca has few prospects for facing fierce competitors and a concentrated market. AstraZeneca may face headwinds internally in their finances, as well as from competitors and regulators. Both countries lack domestic production capacity, so they're reliant on imports that have been slow to arrive. The fund, which had held private meetings with the company, said CEO Ludwig Hantson's go-it-alone approach had failed to gain traction and opposed its plan to buy rivals to diversify its research pipeline. By Itai Almogy, Gaspard Baroudel, Raphael Berz (Yale University), and Nathan Walemba (Oxford University). The acquisition adds a new technology platform to AstraZeneca's science and innovation-driven strategy. AstraZeneca plans to capitalize on Alexion’s pipeline of 20 clinical development projects, striving to convert the significant R&D spend into revenue. Buying Alexion allows AstraZeneca to significantly expand and diversify their cash-flows in the short-term. "This acquisition allows us to enhance our presence in immunology," AstraZeneca Chief Executive Pascal Soriot said in a statement. Alexion's best-selling drug is Soliris, used against a range of rare immune-disorders including paroxysmal nocturnal hemoglobinuria (PNH), which causes anemia and blood clots, and whose revenue rose 3.6% in the first nine months to $3 billion. Speaking on an analyst call, 61-year-old Soriot said the deal should put to rest speculation he was on his way out, as he was determined to stay on board to see the strategic benefits of the transaction delivered. AstraZeneca will fund the deal with a $17.5 billion financing facility from Morgan Stanley, JPMorgan Chase, and Goldman Sachs Group. For AstraZeneca, the acquisition is a major shift, catapulting the British pharma giant to the upper ranks of rare disease drugmaking. Elliott did not immediately respond to a request for comment. The deal would represent the biggest transaction in pharmaceuticals since 2019. CAMBRIDGE, England & BOSTON -- (BUSINESS WIRE)--Dec. 12, 2020-- AstraZeneca and Alexion Pharmaceuticals, Inc. ( Alexion) have entered into a definitive agreement for AstraZeneca to acquire Alexion . Alexion is an American Pharmaceutical company renowned for its groundbreaking work in the development of Soliris, a drug used to treat very rare disorders, as well as Ultomiris, a newer drug aimed at helping the same set of patients. Ultomiris is a hit. ". The cash and stock deal, the largest in AstraZeneca’s AZN, -0.86% history, values Alexion ALXN, +0.09% at $175 per share and has been agreed upon by the boards of directors of both companies. That being said, investors sold off shares in AstraZeneca in response to the announcement, with the share price falling by more than 7%, reflecting an $11bn decrease in market capitalization. Vials of AstraZeneca's COVISHIELD, coronavirus disease (COVID-19) vaccine are seen inside a … AstraZeneca, one of the frontrunners in the drugs industry's search for a COVID-19 vaccine, said on Saturday that Alexion shareholders would receive $60 in cash and 2.1243 AstraZeneca American Depositary Shares (ADSs) for each Alexion share. AstraZeneca’s international reach will allow for expansion of Soliris and Ultomiris past their primary markets, notably into China, representing a significant untapped opportunity.