AstraZeneca to buy MedImmune

Manufacturing News, Source : The Manufacturer US
Zone : Leadership and strategy
Published : 23 Apr 2007 19:19

AstraZeneca announced plans to buy U.S. biotech firm MedImmune for $15.6 billion, writes Forbes, in a bid to boost its stable of high-priced protein and cancer drugs. The deal would seem to cement Astra's focus on cancer drugs after high-profile failures in neurology and cardiovascular disease.

The acquisition, as AstraZeneca described in a press release, brings in MedImmune technology that is "Complementary with existing AstraZeneca therapeutic area strengths in Oncology, Infection

and Respiratory & Inflammation": AstraZeneca gains a strong cancer drug portfolio, which Forbes believes the company needs after a few abortive launches. AstraZeneca's top selling heartburn treatment Nexium is supposedly no different than the now off-patent pill that it replaced, and both blood thinning and cancer drugs have been withdrawn.

Under the terms of the agreement, which has unanimous MedImmune Board support, AstraZeneca will acquire all of the fully diluted shares of MedImmune common stock at a price of $58 per share, for a total consideration of approximately $15.6 billion (including approximately $340m net cash).

AstraZeneca also gains a strong portfolio against infectious diseases.

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