AstraZeneca has made a significant bet on Alexion (rare diseases major). Given this foray into a growing area, the deal should create value – via immediate earnings accretion plus $500m p.a. of synergies from the third year onwards. Although, considering Alexion’s track record, (some) miss on the top-line potential can’t be ruled out. Moreover, leverage build-up – to finance this acquisition and, hence, dividend limitations should unnerve Astra’s shareholders. Overall, this deal has longer-term ....
16 Dec 2020
The mega bet on Alexion
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The mega bet on Alexion
AstraZeneca PLC (AZN:LON) | 10,943 3064 0.3% | Mkt Cap: 169,642m
- Published:
16 Dec 2020 -
Author:
Amandeep Goyal -
Pages:
5
AstraZeneca has made a significant bet on Alexion (rare diseases major). Given this foray into a growing area, the deal should create value – via immediate earnings accretion plus $500m p.a. of synergies from the third year onwards. Although, considering Alexion’s track record, (some) miss on the top-line potential can’t be ruled out. Moreover, leverage build-up – to finance this acquisition and, hence, dividend limitations should unnerve Astra’s shareholders. Overall, this deal has longer-term ....