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Saturday August 8, 2020

updated - August 8, 2020 Saturday EDT

Pfizer might Return for AstraZeneca

Sep 27, 2014 06:19 AM EDT | By Flynna Sarah Molina
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pfizer, astrazeneca, drug, Pharmaceutical, shareholder, investment
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Pfizer
(Photo : http://commons.wikimedia.org/wiki/File:Pfizer_logo.svg)

As what Neil Woodford anticipates, Pfizer's bid was underestimated by UK drug company's prospects

The famous fund official, who was supporting AstraZeneca declined Pfizer's takeover program, expects the US drug brand to come up with a different offer when it arrives in UK.

Pfizer's failure to acquire AstraZeneca has underestimated the brand's prospects. AstraZeneca's rejection caused its major shareholders to be disappointed because of the issues behind this proposed takeover.

According to Woodford, "In my opinion, the figure that was given by the company for AstraZeneca shares was attractive enough for a short term basis, but my belief in AstraZeneca brand is much higher than that. The offer has to be for long term."

Pfizer back down its proposal at the end of May but under the rules, it can make an offer probably next month. But according to Woodford, he does not want Pfizer to make another offer, but still expects to do it, when he was asked if the brand will give another try.

The AstraZeneca shares have dropped after the US President announced its plan to thwart US companies acquiring companies in other countries to pay lesser tax. This much-talked about inverted tax strategy made a huge effect in Pfizer's Astra deal, but the US firm also claimed it aims to lessen costs and manage AstraZeneca's drugs.

As for Woodford, drug firms were underestimated. He also had gloomy feeling on the supermarket industry after the Tesco issue. "I was a shareholder few years back. I ended it since I was bothered about some issues that are going on right now. Apparently, I was not expecting it, since I heard about it last week."

"The sector, as it ends, has been slacking and has issues on generating revenue, there has to be restructuring before the sector will get back its tempo on investment."

As the energy board called out the failure of the industry on dealing with client complaints, Woodford commented that there will be possible freeze in prices. "They will not steal from their clients, however I am aware they are doing a poor job on taking care of the customers as well as telling it to them."

He declined the windfall tax proposal on tobacco firms to support the NHS. He called it bad economics since the firm pays higher taxes than the cost to treat diseases that are smoking-related.

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