Pfizer Inc. (PFE) To Sweeten Bid for Astrazeneca plc (ADR) (AZN): Frost & Sullivan

Ranjith Gopinathan, who is a program manager, life sciences and healthcare practice at Frost & Sullivan during an interview on CNBC said that while Merck & Co., Inc. (NYSE:MRK) has a strong pipeline, there is an urgent need for Pfizer Inc. (NYSE:PFE) to make more acquisitions in order to keep its sales intact.

“[...] It is facing generic competition. Its blockbuster drugs, such as Lipitor and Enbrel, sales are going down. This will have an impact for a couple of quarters. The real concern for Pfizer Inc. (NYSE:PFE), I would say, is its other blockbuster drug, such as Celebrex in the arthritis painkiller market,” said Gopinathan.

According to Gopinathan, the tenure of patents for some of the key drugs of the company are about to expire, which should be an area of concern for the company. He said that Celebrex will lose patent in the U.S. later this year, followed by its key drug, Viagra in 2017 and Lyrica in 2018. Thus, Gopinathan explained that the sales of the company would shrink by 20% within next three to four years, as a result of patent expiration of three of its key drugs.

On the basis of these facts, Gopinathan recommends the idea of a takeover for the company.

” It’s very important that Pfizer Inc. (NYSE:PFE) has to go for some kind of acquisition to strengthen its pipeline and because of that, I think, Pfizer Inc. (NYSE:PFE) would come back with a sweetened offer for AstraZeneca plc (ADR) (NYSE:AZN), mostly in November this year,” he said.

The company abandoned its plants to acquire AstraZeneca plc (ADR) (NYSE:AZN) in May, when the latter turned down its $118 billion bid offer. In the meantime, the progress on cancer drugs and the company’s takeover strategy will be on focus during its conference call today.

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