Drug giant Pfizer, which failed a year ago in its attempt to acquire AstraZeneca, may now be targeting GlaxoSmithKline as a takeover target, according to business news site BidnessEtc.
Pfizer has steadily increased its North Carolina presence in recent years, and GSK employs thousands in the Triangle.
“Pfizer … is not going to nurse its wounds for long as it is now once again scouting for large-scale mergers, and this time, the company’s target appears to be GlaxoSmithKline … an even bigger company than AstraZeneca,” St. Louis-based BidnessEtc reported early Monday.
“Many will be willing to dismiss rumors that Pfizer would go after GlaxoSmithKline; however, we at Bidness Etc believe there is a strong likelihood that these rumors are not ill-founded, considering the company has only paid a fraction of the amount it had outlined for AstraZeneca acquisition, when it acquired Hospira Inc … for $17 billion. The company’s CEO Ian Read has highlighted that Pfizer is still deal-hungry and will go for strategic acquisitions when the opportunity comes up.”
Hospira operates a big plant in Rocky Mount.
GSK is in a weakened state, its stock declining 7 percent over recent months, BidnessEtc noted.
The drug giant is laying off hundreds of workers in the Triangle and in Pennsylvania as it restructures in the wake of a recent swap of assets with Novartis.
BidnessEtc. notes it isn’t alone in Pfizer-GSK deal speculation.
“Kevin Kedra, a New York-based analyst at Gabelli & Co., first highlighted the possibility of such an acquisition for Pfizer when he remarked that Pfizer could look into acquiring GlaxoSmithKline or Bristol-Myers Squibb Co (NYSE:BMY) in an attempt to boost its revenues and earnings,” it reported.
Read the full story at: http://www.bidnessetc.com/41012-pfizer-inc-pfe-rumored-to-be-eyeing-british-giant-glaxosmithkline-plc-adr/