AstraZeneca on Saturday said it would acquireAlexion Pharmaceuticals for $39 billion.- "Alexion has established itself as a leader in complement biology, bringing life-changing benefits to patients with rare diseases. This acquisition allows us to enhance our presence in immunology," said Pascal Soriot, chief executive of AstraZeneca, in a joint press statement.
- AstraZeneca said it had offered shareholders cash and stock worth about $175 per share, an about 45% premium from Friday's close at $120.98 per share.
AstraZeneca on Saturday announced it was acquiring Alexion Pharmaceuticals for $39 billion, a deal aimed at boosting AstraZeneca's immunology and rare-disease research, combining the companies' worldwide delivery pipelines, and establishing a new research headquarters in Boston.
"Alexion has established itself as a leader in complement biology, bringing life-changing benefits to patients with rare diseases. This acquisition allows us to enhance our presence in immunology," said Pascal Soriot, chief executive of AstraZeneca, in a joint statement.
The UK drugmaker offered Alexion shareholders a total of about $175 per share, a 46% premium over $120.98, where Alexion's American depositary shares closed Friday's session. Shareholders will receive $60 cash and 2.1243 AstraZeneca US shares, under the proposed deal, which will require US regulatory sign-off.
Both boards unanimously approved the deal, which is expected to close in the third quarter of 2021. Alexion shareholders will hold about 15% of the combined company. Two members of Alexion's board will make the move to AstraZeneca's board.
"We bring to AstraZeneca a strong portfolio, innovative rare disease pipeline, a talented global workforce and strong manufacturing capabilities in biologics," said Ludwig Hantson, chief executive of Alexion.
AzstraZeneca on Saturday laid out a roadmap for the merger, saying the combined company will "drive future medicine innovation" in immunology, biologics, genomics, and olgonucleotides.
Alexion's current management is expected to lead the company's rare-disease unit, and each Alexion employee can continue on at their current pay for a minimum of 12 months, according to Saturday's release. The joint roadmap also included a push into emerging markets, along with the establishment of a new research headquarters in Boston, a city with a cluster of research institutions and hospitals, where Alexion is based.
"AstraZeneca intends to build on its geographical footprint and extensive emerging markets presence to accelerate the worldwide expansion of Alexion's portfolio," the companies said.
AstraZeneca said it expects about $650 million in new costs during the three-year integration period, followed by about $500 million per year of savings. If Alexion axes the deal, it'd be liable for a $1.2 billion payment to AstraZeneca, while the reverse would cost AstraZeneca $1.4 billion.
In partnership with the University of Oxford, AstraZeneca has this year developed a COVID-19 vaccine, which is now being tested by UK government regulators.
When the company announced in November that its vaccine had succeeded in trials, some were quick to raise questions about the data that had been released. It had said the vaccine was 70% effective, but offered data stitched together from multiple trials, worrying some outside researchers.