Shares of British pharmaceutical maker AstraZeneca fell as much as 9% in London trading as markets responded to news that the company had agreed to buy US Alexian drugs for $ 39 billion over the weekend.
Meanwhile, Alexian shares rose 30% as it opened in New York on Monday, the company that had been under pressure to sell since May, finally finding a buyer.
Cash and Stock Agreement, AstroGeneca’s largest AZN
History, Values Alexian ALXN,
5 175 per share and agreed by the Boards of Directors of both companies.
Analysts set Alexian’s purchase price at a premium of 1,121 per share on Friday.
Acquisition of AstraZeneca is a race for rare diseases and immune diseases in one year, which saw the British pharmaceutical company emerge as the leading developer of a Govit-19 vaccine.
Under the terms of the deal, Alexian shareholders will receive $ 60 in cash and $ 115 in AstraZeneca shares, AstraZeneca said Saturday. If approved, Alexian shareholders will receive 2.12 per cent of AstraZeneca’s US-listed shares for each Alexian stake they hold.
The transaction is subject to the approval and regulatory approvals of AstraZeneca and Alexian shareholders and is expected to close in the third quarter of next year.
The deal comes a year after the University of Oxford became the developer of the COVID-19 vaccine candidate, making Astrogeneka a household name.
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A big bet on rare-disease and immunosuppressive drugs will allow the company to expand its foothold in the field of immunization and diversify the fast-growing cancer drugs business.
AstroGeneca said it expects more than 500 million Predox synergies a year from the transaction and an immediate boost in revenue. The company expects a one-time cash cost of $ 650 million to realize the synergies.
“Alexian has established itself as a leader in complementary biology, providing life-changing benefits to patients suffering from rare diseases,” said AstraZeneca CEO Pascal Soriat. “This acquisition allows us to improve our presence in the immune system.”
Alexeiyan is located in Boston, Ma.
The US pharmaceutical drug sold is Solaris, one of the most expensive drugs in the world, used to treat paroxysmal nocturnal hemoglobinuria (PNH) – a rare, life-threatening blood disease.
Alexian has been pushing to sell himself since the beginning of this year. Activist Hedge Fund Elliott Associates wrote a letter to the company’s board in May asking it to sell Alexion, pointing out management’s misconduct.
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“Astra has had great success with its anti-cancer drugs, which are currently in the news because it is working with the University of Oxford to develop a Covit-19 vaccine, so Alexian action helps diversify,” said David Madden, market analyst at CMC Markets UK.
“The Alexian deal is invaluable as it represents 45% of the premium. It is understood that the London-listed company will raise $ 13 billion in debt funds for the transaction,” Madden said.