Is This Struggling Drugmaker Worth $100 Billion?

After AstraZeneca reportedly rebuffed Pfizer's huge acquisition offer, we look into what makes the former's pipeline attractive to Pfizer and investors.

Apr 24, 2014 at 9:30AM

The pharmaceutical world got a shock this week from reports that Pfizer (NYSE:PFE) had engaged in informal talks with Big Pharma rival AstraZeneca (NYSE:AZN) about a possible $100 billion acquisition. AstraZeneca reportedly expressed no interest in the massive potential buyout, which would have put its pipeline of cancer drugs and other promising medications in Pfizer's hands. But is AstraZeneca's pipeline and current drug portfolio really worth what could have been one of the biggest health care acquisition of all time?

No doubt Pfizer is hungry for a deal, as it holds tens of billions of dollars in untaxed overseas cash and needs to bolster its pipeline. AstraZeneca, however, is in a world of hurt of its own with patent expirations of blockbuster drugs Crestor and Nexium coming in 2016. The company does boast of a number of cancer-fighting drugs in development, among other projects, but in its latest pipeline update AstraZeneca projected that most of its major developmental projects were still some time out from regulatory filing.

Can investors count on AstraZeneca, or will revenue losses and the patent cliff be too much for this stock to overcome in the near future? In the video below, Motley Fool contributor Dan Carroll takes you through what made AstraZeneca so intriguing to buyout-hungry Pfizer and whether this company's performance and pipeline will impress investors in the long term.

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Dan Carroll has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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