AstraZeneca and Pfizer, the drug companies that fought a bitter takeover battle last year, have both made acquisitions to support their financial performance.
Pfizer, the US maker of Viagra, has agreed to pay about $15bn (£10bn) for Hospira, which produces generic drugs in the US. It is Pfizer’s biggest deal since AstraZeneca fought off its unwelcome £69bn takeover bid last year.
AstraZeneca, Britain’s second-biggest pharmaceutical group, announced its own smaller deal, agreeing to pay an initial $600m to buy a respiratory drug business in the US and Canada from Actavis.
The UK company unveiled the deal as it reported disappointing fourth-quarter results. Sales fell 2% to $6.7bn and core earnings per share dropped 38% to 76 cents, missing analysts’ forecasts.
Pascal Soriot, the AstraZeneca chief executive, said: “We are on track to return to growth by 2017 and are well positioned to deliver our long-term goals.”
In its defence against Pfizer, the company predicted annual revenues would rise by more than 75% to $45bn by 2023.
Buying the business from Actavis could help AstraZeneca achieve its targets, because respiratory treatments are one of its main therapeutic areas. Pfizer needs new products such as Hospira’s to keep its profits growing.
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