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Astrazeneca trade on Stock.com

ASTRAZENECA & PFIZER SHOW VOLATILE STOCKS

Nov 17 2014, 11.45am GMT

STOCK.com

AstraZeneca falls past -3.8% and Pfizer is also down in the battle for the pharma anti-cancer market.

The deal announced this morning regarding the participation of U.S drug maker Pfizer and Germany’s Merck on the development of an anti-cancer drug, has sent main competitor, British pharmaceutical company AstraZeneca, on a volatile track, reaching down as much as 3.8% to 4,502, then rising again within an hour back to 4,566.

The deal puts Pfizer in a position of strength against AstraZeneca but also means that the investment in the anti-cancer tumor drug will send earnings expectations down. Pfizer will meet half of the costs of development and commercialization but also reap 50% of revenue rewards. Pfizer’s investment costs amount to $850 million upfront with Merck receiving another $2 billion in milestone payments. The loss on earnings drove Pfizer stocks down on Friday’s close of market after details of the deal were leaked.

In May Pfizer wanted a $118 billion deal with AstraZeneca but the British company rejected the 55 GBP per share offer. Though new rules may enable a renewed bid, market sources are showing little confidence that Pfizer will bid again.

With AstraZeneca’s three consecutive reports of growth this year, high earning’s expectations and its own anti-cancer drug programme, the competition is heating up in the race to find anti-cancer tumor drugs. AstraZeneca will be briefing investors tomorrow on strategy.

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