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AstraZeneca has plan to fend off Pfizer

By SYLVIA HUI Associated Press

Publication: The Day

Published May 07. 2014 4:00AM
Drugmaker tries to persuade shareholders that sales can jump by remaining independent

Drugmaker tries to persuade shareholders that sales can jump by remaining independent

London - AstraZeneca on Tuesday outlined plans to make sales jump over the next decade, an effort to persuade shareholders the drugmaker can do well as an independent company, rather than get bought out by rival Pfizer.

In a statement, AstraZeneca said investors would share the benefits of a "strong and consistent revenue growth" that would see annual sales rise to more than $45 billion by 2023 from $25.7 billion last year.

The U.K.-based company on Friday spurned Pfizer's third acquisition proposal, this time for about $106 billion. AstraZeneca PLC, the No. 8 drugmaker, called that inadequate and said the potentially lucrative "pipeline" of new drugs it is developing would be disrupted by a takeover.

AstraZeneca's revenues last year fell 6 percent but the company said Tuesday that under its new management and strategy it is now "repositioned for a return to growth."

"AstraZeneca is completing its transformation, and now has the right size, focus and team to deliver on one of the most exciting pipelines in the pharmaceutical industry," said Chief Executive Pascal Soriot. "We are continuing to create significant value for shareholders from our independent strategy."

Pfizer said last week it was considering its options. If the deal succeeds, it would be the biggest takeover in British corporate history. Many politicians fear it could mean big job cuts and a loss of stature in the country's science sector.

On Tuesday, Business Secretary Vince Cable told lawmakers he will not rule out intervening in any formal bid by Pfizer to buy AstraZeneca, although he stressed that the shareholders of both companies make the ultimate decision.

The British government can intervene in mergers or takeovers in cases where national security, competition concerns or national financial stability, among other issues, are at stake.

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