AstraZeneca to Spend Up to $1.15 Billion on New Acquisition

LONDON -- The shares of AstraZeneca  (LSE: AZN  ) (NYSE: AZN  ) added 1 pence to 3,302 pence during early London trade this morning after the company said it would spend up to $1.15 billion buying an American developer of treatments for lung disorders.

The FTSE 100 member confirmed it would acquire Pearl Therapeutics for an initial $560 million and would pay up to a further $450 million should certain development and regulatory milestones be achieved.

In addition, up to a further $140 million could be payable based on Pearl's future sales.

Pearl, based in California, develops inhaled treatments for respiratory diseases such as chronic bronchitis, emphysema and asthma.

Pascal Soriot, AstraZeneca's chief executive, said this morning:

Pearl's novel formulation technology, together with its development products and specialist expertise are a great complement to AstraZeneca's long-established capabilities in respiratory disease, one of our core therapy areas.

Kevin Ferro, the chairman of Pearl Therapeutics, said:

We believe AstraZeneca will provide significant value in supporting the further development and registration of our lead product, PT003, and in leveraging our technology platform to realise future products including a triple agent therapy for respiratory disease.

AstraZeneca claimed the purchase would not affect its financial guidance for 2013, whereby revenues are predicted to fall between 5% and 10% and profits are projected to drop "significantly more."

However, a $2.80 -- or 185 pence -- per-share dividend declared for 2012 currently supports a 5.6% yield.

Of course, whether that high income, today's acquisition news, as well as the wider prospects of pharmaceutical industry all combine to make AstraZeneca a buy is something only you can decide.

However, if you already own AstraZeneca shares and are looking for more juicy income buying opportunities, this exclusive wealth report reviews five particularly attractive possibilities.

Indeed, all five opportunities offer a rich mix of robust prospects, illustrious histories and dependable dividends, and have just been declared by the Fool as "5 Shares You Can Retire On"!

Just click here for your report -- it's free.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2480023, ~/Articles/ArticleHandler.aspx, 10/27/2016 11:12:34 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 hour ago Sponsored by:
DOW 18,169.68 -29.65 -0.16%
S&P 500 2,133.04 -6.39 -0.30%
NASD 5,215.97 -34.29 -0.65%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/27/2016 12:05 PM
AZN $4613.80 Down -0.70 -0.02%
AstraZeneca CAPS Rating: No stars
AZN $28.54 Down -1.05 -3.55%
AstraZeneca CAPS Rating: ****