PFIZER: We can´t do it...AstraZéneca, GlaxoSmithKline, Actavis(?)

There is speculation that with Pfizer's bid for AstraZeneca off the table for now, 

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Pfizer y AstraZeneca: Son rumores? (y de otros mergers...)

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Pfizer is considering other large pharmaceutical companies to pursue such as GlaxoSmithKline. In a previous article, I discussed that Pfizer needs to acquire a promising drug pipeline, such as the one AstraZeneca holds, to fuel future growth. Synergies with the acquired company in Pfizer's current areas of expertise would also allow it to offer shareholders more value once it spins off non-core assets like its generic drug business. 

GlaxoSmithKline has a market cap of about $118 billion, which is close to Pfizer's final bid for AstraZeneca valued at $120 billion. However, it is important to keep in mind that AstraZeneca's market cap prior to announcement of Pfizer's interest in the company was only $81 billion. Pfizer's initial bid placed a 30% premium on AstraZeneca's stock price prior to announcement and its final bid placed a 45% premium. Accordingly, a 30% premium to GlaxoSmithKline's current valuation would be $153 billion. For a company with a market cap of $190 billion and only $35 billion in cash, Pfizer seems unlikely to be able to swallow a pill as large as GlaxoSmithKline. 

Pfizer's desire for a tax inversion deal is high, but its options are limited.
  
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´Tax inversions´..."ahí está el detalle" en Pharma M&A.

AstraZeneca still represents the best bet Pfizer has for ensuring future success by acquiring a strong drug pipeline and for exploiting tax savings that it says could amount to $1 billion annually.(Ver)

After being rejected by AstraZeneca Plc, Pfizer Inc. still has a chance to clinch the drug industry’s biggest deal. While Pfizer shelved plans in May to buy the U.K. company in a record-setting transaction, its plan B could be an even larger target, $118 billion GlaxoSmithKline Plc, according to Berenberg Bank. A takeover of London-based Glaxo, which has gotten about 8 percent cheaper in the past two weeks, would give Pfizer a lung-drug business and more vaccines. Another possibility, Irish-domiciled Actavis Plc at $57 billion, would offer a pipeline of new products and generic medicines. Either one may allow the New York-based company to move its headquarters abroad and lower its tax rate. In hunting for a deal, Chief Executive Officer Ian Read is looking to reduce taxes and restock a dwindling stable of patent-protected drugs. Without an acquisition, Pfizer will have almost no revenue growth over the next decade, analysts’ estimates compiled by Bloomberg show. Rather than falling back on share repurchases to boost earnings, Pfizer should have done a deal by now, SunTrust Banks Inc. said. “If they’re willing to go after AstraZeneca, they can obviously go after other sizable targets,” Kevin Kedra, an analyst at Gabelli & Co., a unit of Gamco Investors Inc., said in a phone interview from Rye, New York. “There’s not much to limit Pfizer except finding a deal that makes sense.”(Más)