AstraZenecaPLC (LON:AZN) has played down reports it is attempting a takeover of Gilead Sciences Inc in what would be the world’s biggest pharma merger.
Bloomberg reported at the weekend that Anglo-Swedish group Astra had approached Gilead about a month ago, but today’s stories said that no talks were ongoing and both companies were focused on their own products.
A deal would create a business worth around US$240bn and bring together two of the companies leading the way in the fight against coronavirus.
Gilead’s remdesivir is seen as the one of the most promising of the anti-virals currently under trial as a treatment for coronavirus, while Astra is collaborating with Oxford University over the mass production of a vaccine.
AstraZeneca is now one of the UK’s largest listed companies with a market value of £110bn having enjoyed a strong run of success under chief executive Pascal Soriot in developing new blockbuster cancer treatments.
Soriot has been at the helm of the Anglo-Swedish giant since 2012 and has seen its share price soar recently on the back of trial results of cancer drugs such as Tagrisso. and Lynparza
Aside from remdesivir, Gilead, which is worth about US$100bn, is best known for flu treatment Tamiflu and Truvada, an HIV preventiative, as well as drugs for liver disease and inflammation.
There has been no official confirmation of the talks from either company and no details have been released but just by market value any deal would be larger than Bristol-Myers Squibb's $US74bn takeover of Celgene last year.
AstraZeneca fought off a $US117bn approach from Pfizer in 2014.