Undoubtedly, Pfizer Inc. is the one of the most prominent names out of many pharmaceutical companies in the health care industry. The company’s main objective is to work for a healthier, disease free, and a safe world. It operates its business by producing and selling drugs all across the globe and it has many successful medicines on its portfolio as well.
In previous times, the company tried a lot to acquire AstraZeneca, but failed. However, it managed to sustain and strengthen itself in the market. The latest news suggests that the merger between Pfizer and GlaxoSmithKline is on the cards now.
Rumors started to gather pace regarding Pfizer’s interest to take over its UK-based rival GlaxoSmithKline. This has to be very big news in the health care sector and hence Deutsche Bank’s analyst, Gregg Gilbert, has further ignited fire in these rumors.
Mr. Gilbert has placed a dollar value on this merger deal on Wednesday, which resulted in spreading fire to these speculations. He wrote a note to investors, which was titled ‘Introducing PfizerKline’ and explained that the GlaxoSmithKline buyout or merger would result as ‘materially accretive’ for Pfizer in the coming times. This buyout will further allow the health care giant to ‘unlock access to its balance sheet and improve its tax situation.’
‘Introducing PfizerKline’ stated, “We believe that the company has a sense of urgency to create value by leveraging the power of its balance sheet to do needle-moving deals. Since media reports in the past have pointed to the potential for a Pfizer/GSK combination, we are revisiting that theme.”
Gregg Gilbert further mentioned that this merger would be beneficial for both companies. According to him, the buyout will save the costs of around $3.7 billion or 10% of operating expenses as well. So far, the spokespersons from both parties have declined to comment on the speculations that would result in a massive merger.
The CEO of the company, Ian Read, showed his desire in January of being open for various strategic acquisitions in the future. He stated, “Pfizer is biased toward deals with the potential for creating value in the near term.”
However, many analysts feel that this merger deal might be too hard to chew as well. The company’s failed attempts to acquire AstraZeneca were because of the sheer size. However, GlaxoSmithKline is a much bigger company than AstraZeneca, which has a total workforce of 115,000 throughout the world.
No comments:
Post a Comment