Pfizer, Inc. (PFE) is a
well-established and well known company in the pharmaceutical world. Recently,
news is emerging that a potential bid of $100 billion is put forward in favor
of the British-Swede company, AstraZeneca. The initial news came out that
AstraZeneca had turned down an offer of $60 million by Pfizer. AstraZeneca is
known as the second largest pharmaceutical company which is based outside UK.
The Pfizer stock price has
improved ever since this potential news came out. However there are a few
points that need to be taken care of by Chief Executives of both companies.
AstraZeneca
The
Chief Executive of AstraZeneca, Pascal Soriot, must cleverly look after a few
things as the rivals Pfizer launched a $1 billion bid
1)
To prove Pfizer
and the world that the company can make it through on its own.
2)
The share prices
must be regenerated.
3)
Proving
dedication and commitment to the industry of British as well as jobs.
The
expected revenue of the company is about to increase by 75% in the next decade.
The company is ambitious to complete such a target in the years to come. Various
steps have to be taken by the company to rise up the share prices of the
company in order to get the maximum support from the shareholders. Shareholders
are not content with the company’s position at the moment regardless of the
being named as one of the biggest companies. The company’s share price went
down as fast as they could once the bid of Pfizer was rejected. Hence, the
owners will have to show commitment and dedication to British jobs and industry
as well in order to sustain the company in the market.
Pfizer
The
Chief Executive of Pfizer, Ian Read, must cleverly look after a few things as the
company planned to launch a bid for AstraZeneca worth $1 billion
1)
To expand the
friendship within U.K.
2)
To expand the
friendship within U.S.
3)
To improve the
relations between Pfizer and AstraZeneca.
In
order to make a successful pursuit for AstraZeneca, Pfizer have to put in the
efforts to improve the bar in Washington. Moreover, the company must mend
fences with AstraZeneca as some of the shareholders are looking forward to have
fresh talks about the mega merge. AstraZeneca believes that merging might cause
the company losing a lot of reputation. Hence, Pfizer will have to come up
which will really convince the AstraZeneca’s shareholders.
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