Pfizer reported what analysts termed "weak results with disappointing revenues" for Qtr1 2014. Nevertheless, Pfizer is still expected to actively pursue its big bucks purchase of AZ -- in fact the weak results may highlight all the more why a move of this type is motivating the pharma giant. See Fierce Pharma .
AstraZeneca for its part is still saying the bid badly undervalues the company. AZ execs continue to say that their R&D restructurng efforts over the past 18 months have turned the company around. They claim to have a more fertile pipeline and have "the momentum" to carry it to fruition. The more jaded analysts say, they've heard it all before and AZ's R&D track record can be fairly termed the worst among all Big Pharma players within the past decade to decade and a half. When you look at the pending patent expirations of such cash cows as Seroquel, Nexium and Crestor in the next year --- well it is always darker before the dawn isn't it? Analysts as a group say that AZ will see no growth before 2018. See Fierce Biotech.
On the other hand, analysts are also beginning to speculate as to what R&D centers will be closed in the new Pfizer-AZ family once the deal goes through. As you know, Pfizer is pursuing the deal, in lage part, due to the prospect of setting up its new headquarters in the UK to realize a large tax savings. To make the UK goverment feel more at ease, Pfizer's Read sent a letter to the Prime Minister assuring that Pfizer plans to keep at least 220% of its R&D in the UK, and that it will finsih the building of the Cambridge R&D center of excellence that AZ has begun. Other UK ministers are not so sure and point to Pfizer's own UK R&D closings in recent years. See inPharmaTechnologist.
It seems clear though that if Pfizer stays the course in the UK, other sites will have to close. The sites projected to be likely losers include: AZ's Moindal, Sweden, Pfizer's La Jolla, CA and Cambridge, MA sites, and AZ's Boston and Gaithersburg, MD (MedImmune) sites. See Fierce Biotech and In the Pipeline.
Posted by Bruce Lehr May 5th 2014.