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A Doozy of a Pharma Rumor

The latest health care acquisition rumor is a doozy.

According to multiple news outlets, Pfizer (NYSE: PFE  ) was in talks with AstraZeneca (NYSE: AZN  ) to acquire the company for over $100 billion, although the companies apparently broke off talks. Interestingly, this news report kicked off a week of merger and acquisition news hitting the pharma space. This is an interesting possible reversal of the past drive to slim down, with pharma companies focusing in on their core strengths and spinning off divisions instead of seeking more diverse revenue sources. While the merger of Pfizer and AstraZeneca may not come to pass, there's a growing trend of mergers recently, including Actavis and Forest Labs, so perhaps the proposed tie-up isn't as implausible as it appeared at first glance.

In the video below, senior biotech specialist Brian Orelli and health-care bureau chief Max Macaluso give their thoughts on recent megamergers, such as Pfizer-Wyeth and Merck (NYSE: MRK  ) -Schering-Plough, and discuss why Pfizer might be coveting the British pharma giant.

Let's just hope Pfizer doesn't cut its dividend again
If it follows the logic as it did when Pfizer acquired Wyeth, the dividend might get cut. Investors looking for other dividend options should check out our report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

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Brian Orelli

Dr. Orelli is a Senior Biotech Specialist. He has written about biotech, pharmaceutical, and medical device companies for The Motley Fool since 2007.

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Related Tickers

9/1/2015 4:04 PM
AZN $30.69 Down -0.59 -1.89%
AstraZeneca plc (A… CAPS Rating: ****
PFE $31.36 Down -0.86 -2.67%
Pfizer CAPS Rating: ****
MRK $52.53 Down -1.32 -2.45%
Merck & Co., Inc. CAPS Rating: ****