For now, Pfizer, the biggest U.S. drugmaker, is on the brink of abandoning its effort to acquire AstraZeneca for $117 billion.
Today is the last day for Pfizer to make a firm offer and Pfizer is certain to announce that it won’t do so.
As per U.K. government rules, both parties will have at least 3 month cooling off time before talks can resume. Pfizer expects that during that time London-based AstraZeneca investors will pressurize the company’s board to resume talks.
AstraZeneca has forecasted sales of $45 billion by 2023, a 75% rise from last year on the basis of new type of cancer medicines which use the immune system of body to attack tumors.
Much of the optimism of Pascal Soriot, AstraZeneca’s chief executive officer, revenue growth arises from the company’s schedule of 71 experimental medicines targeted at diseases from diabetes to lung cancer. The company said they might yield up to $63 billion in peak-year sales.
AstraZeneca is also making a bet on its respiratory and asthma medicines; diabetes drugs it bought from Bristol-Myers Squibb Co. and Brilinta, a blood thinner. Collectively, the company expects those medicines will generate about $20 billion by 2023.