AstraZeneca: Oddo reiterates rating after rumours
(CercleFinance.com) - AstraZeneca reportedly approached Gilead last month for a merger according to Bloomberg.
Oddo says that the new group's revenues would be almost entirely from prescription drugs, making AstraZeneca the world's largest prescription drugs company, on a par with Roche (source: evaluatepharma).
Analysts believe that the rationale for such a merger is quite credible. Both companies' product portfolios are highly complementary, with AstraZeneca providing oncology and respiratory products, while Gilead offers its anti-infectious disease drugs (HIV, Hepatitis C).
Together, both companies would have average annual FCF of 20 billion dollars over the next five years. Ultimately, in this structure, AstraZeneca's EPS would increase by 5% by 2025, Oddo adds.
Oddo therefore confirms its buy rating on the share, with a target price of 8100 pence.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Oddo says that the new group's revenues would be almost entirely from prescription drugs, making AstraZeneca the world's largest prescription drugs company, on a par with Roche (source: evaluatepharma).
Analysts believe that the rationale for such a merger is quite credible. Both companies' product portfolios are highly complementary, with AstraZeneca providing oncology and respiratory products, while Gilead offers its anti-infectious disease drugs (HIV, Hepatitis C).
Together, both companies would have average annual FCF of 20 billion dollars over the next five years. Ultimately, in this structure, AstraZeneca's EPS would increase by 5% by 2025, Oddo adds.
Oddo therefore confirms its buy rating on the share, with a target price of 8100 pence.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.