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Alexander J. Poulos

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  • Should Pfizer Attempt To Acquire AstraZeneca? [View article]
    •AstraZeneca (AZN) is reviewing its neuroscience and anti-infection businesses and hopes to announce news "in the near future," CEO Pascale Soriot says following the company's Q1 earnings.
    •Astra could sell or spin off the operations - which analysts reckon could bring in $15B but which the company views as non-core - or bring in partners.
    •AstraZeneca is exploring options similar to Novartis' and GlaxoSmithKline's multibillion-dollar asset swap.
    •However, Soriot declined to comment on a report that Pfizer (PFE) had offered over $100B to buy AstraZeneca.

    Perhaps, the spin-off of the above mentioned divisions will help facilitate a deal. The pharma industry is definitely undergoing some interesting changes. It will be interesting to see how the changes play out.
    Apr 24 12:05 PM | Likes Like |Link to Comment
  • Saying Goodbye To Coca-Cola, Time To Move On [View article]
    •Shareholders at Coca-Cola (KO) approved an executive compensation plan that has drawn a fair share of criticism.
    •The plan was approved by 83% of the vote despite the efforts of Wintergreen Advisers to highlight the potential dilution of equity it will bring to shareholders.
    •Warren Buffett agreed that the plan was excessive, but told CNBC he didn't want to show disapproval of management by voting against it with his formidable block of 400M shares.

    Notice how Mr. Buffett's agrees that the compensation plan is excessive. It will be interesting to see how this issue plays out over the next few years.
    Apr 23 04:45 PM | Likes Like |Link to Comment
  • Should Pfizer Attempt To Acquire AstraZeneca? [View article]
    Jimghad,

    Yes they did.
    Apr 23 03:05 PM | Likes Like |Link to Comment
  • Should Pfizer Attempt To Acquire AstraZeneca? [View article]
    Small Pharma analyst,

    I disagree with you on the Lipitor/Crestor issue. Merck for a period of time held had two patented statins (Mevacor/Zocor) at the time when there were only 5 viable alternatives. Currently there are at least 7 different statins on the market with two (Crestor, Lialvo) enjoying patent protection. The key though for the deal is the pipeline, as I am certain you will agree is the key asset behind the proposed acquisition. Thanks for reading and commenting.
    Apr 22 06:18 PM | 1 Like Like |Link to Comment
  • Should Pfizer Attempt To Acquire AstraZeneca? [View article]
    Long term Bio,

    Look at the deal announced today between Novartis and GSK. GSK oncology division was acquired for 16 billion. I suspect the deal was more structured for a swap of assets, not a strict divestiture as GSK acquired some of Novartis's assets. PFE needs quite a few hits to make the deal worthwhile, I suspect AZN cancer franchise is much stronger than GSK's. It will be interesting to see if the deal is actually consummated. I generally agree it is better to target smaller companies with promising therapies. Thanks for reading and commenting.
    Apr 22 01:15 PM | Likes Like |Link to Comment
  • Ensco Plc: Is A 6% Yield Enough To Overcome The Risks Involved In Holding The Shares? [View article]
    The blurb below speaks to the potential for offshore drilling, especially with a major oil producer ramping up production in the Gulf of Mexico. ESV recently signed a deal with BP, perhaps further deals with be forthcoming.

    •Four years after the worst offshore oil spill in American history, BP is busier than ever in the Gulf of Mexico, the Gulf has become one of BP's most profitable regions in the world, and the company has produced only ~20% of the reserves from its four huge Gulf fields.
    •BP has rebuilt its Gulf armada of deepwater drilling rigs to nearly double its size before April 20, 2010, fired up three big expansion projects in the last year, and last month reached a deal with the U.S. government to lift a suspension from entering into new federal contracts for leases in Gulf oil fields.
    •Some Gulf fisherman say their livelihoods still haven't recovered, and that the area's oyster populations, home to about two-thirds of U.S. supply, have been in decline since the spill; BP disputes the claim.
    •Meanwhile, a federal court today laid out a detailed schedule for the penalty phase of BP’s civil trial over the Gulf spill, setting the first day for Jan. 20, 2015.
    Apr 22 12:57 PM | Likes Like |Link to Comment
  • Should Pfizer Attempt To Acquire AstraZeneca? [View article]
    2Reb,

    Your comment neatly sums up why I continue to write for Seeking Alpha. A good article will generate a serious conversation which helps all investors make a more informed decision. Thank you for reading and commenting.
    Apr 22 09:33 AM | Likes Like |Link to Comment
  • Should Pfizer Attempt To Acquire AstraZeneca? [View article]
    fatbaboon,

    The main focus of the deal should be on the quality of AZN pipeline as it's ultimate success/failure will determine if this proposed deal is a successful one. If the pipeline produces a new flagship med such as Lipitor, then the deal will be judged as a success. There is plenty of risk involved here, I will sit this one out for a while.
    Apr 21 07:10 PM | Likes Like |Link to Comment
  • Should Pfizer Attempt To Acquire AstraZeneca? [View article]
    ekwenro,

    Thanks for the kind words. Just as an aside, Gilead Sciences acquired it's new flagship Hep C treatment when they acquired Pharmasset. Notice how nobody is complaining about that particular deal. We will have to see what the pipeline ultimately produces before determining if the deal has merit or not. Thanks for reading and commenting.
    Apr 21 04:59 PM | Likes Like |Link to Comment
  • Should Pfizer Attempt To Acquire AstraZeneca? [View article]
    User 9052641,

    It will be interesting to see if the deal actually is finalized. Both companies are up sharply on the rumor of a potential deal. thanks for reading and commenting.
    Apr 21 04:15 PM | Likes Like |Link to Comment
  • Should Pfizer Attempt To Acquire AstraZeneca? [View article]
    atul6669,

    Ah, the great wild card, what indeed will the pipeline bear? I wish I had a definitive answer. To speak to your point concerning the worst case scenario, the deal would then become an unmitigated disaster. Actually in my view, the pipeline would need to come in above average for the deal to be accreative for investors. Is there the possibility, yes however we won't know for a few more years. whether the deal is consummated or not, it will be an interesting story to follow.
    Apr 21 01:52 PM | Likes Like |Link to Comment
  • Should Pfizer Attempt To Acquire AstraZeneca? [View article]
    atul6669,

    I have confidence that management can mitigate the decline via cost cutting. The unknown/difficult part revolves around how quickly can they bring viable new therapies to market. This is the true unknown, the answers will be revealed as the compounds progress through the various stages of clinical trails. thanks for reading and commenting.
    Apr 21 01:00 PM | Likes Like |Link to Comment
  • Should Pfizer Attempt To Acquire AstraZeneca? [View article]
    Jimghad,

    The diabetes portfolio that would be acquired contains Byetta/Bydureon a nice product however it lacks the sales that its nearest competitor Novo Nordisk generates from Victoza. Victoza is considered best in class for now. As for Farxiga, it was initially denied by regulators stating they needed more data before approving. Upon approval, BMY sold its stake in the venture back to AZN stating they wished to use funds to focus on their Hep C/oncology franchises. Farxiga will be competing in a competitive field, thereby in my view limiting its sales upside. Sorry, I am not very bullish on AZN diabetes franchise.

    As for the merger, it will be interesting to see how they structure it. If they further dilute shareholders it would be an obvious negative. I would prefer they use cash and debt to do the acquisition, especially with long term rates so attractive. Thanks for reading and commenting.
    Apr 21 12:56 PM | Likes Like |Link to Comment
  • Should Pfizer Attempt To Acquire AstraZeneca? [View article]
    choiminshik,

    I disagree with your comment concerning Warner Lambert. The purchase of Warner Lambert yielded Lipitor, PFE flagship product for the past decade. That doesn't necessarily mean the AZN merger will be beneficial, it depends on the ultimate success of the acquired pipeline. Thanks for reading and commenting.
    Apr 21 12:24 PM | Likes Like |Link to Comment
  • Should Pfizer Attempt To Acquire AstraZeneca? [View article]
    Bob,

    Keep in mind they are acquiring a future pipeline along with a company with quite a few commercially viable products. I suspect the product decline can be managed by reducing expenses, the wild card here is what will the pipeline ultimately be worth. Unfortunately, we won't know for at least 5 years which makes the proposed deal even harder to value. Thanks for reading and commenting.
    Apr 21 12:21 PM | Likes Like |Link to Comment
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