Pfizer Inc.’s share price up, considers an acquisition of AstraZeneca Plc, which may form the largest healthcare entity

According to people with knowledge of the matter, who asked not to be named because the issues are still not public, the largest drug manufacturer in the U.S. – Pfizer Inc. – intends to start over the negotiations over the acquisition of AstraZeneca Plc. This may be one of the biggest mergers in the health-care sector after the Pfizers purchase of Warner-Lambert, which is expected to form a pharmaceutical giant estimated to about 300 billion dollars.

The market capitalization of AstraZeneca Plc is 51.5 billion pounds (86.6 billion dollars), which prompted some people familiar with Pfizers plans to say the merger could amount to more than 100 billion dollars.

As reported by Bloomberg, the spokeswoman of Pfizer Inc. – Ms. Joan Campion declined to comment saying “We dont comment on rumour and specilation.”

An eventual merger between the two companies is going to form a health-care giant, manufacturing drugs for most of the major diseases, spanning from diabetes to different kinds of cancer. It would create a joint venture between the cancer units of both Pfizer and AstraZeneca, with the latter currently focusing on cancer treatment using the bodys own immune system, which is considered the new generation of cancer treatment. In addition, when the acquisition is complete, Pfizer will get the opportunity to increase the number of drugs in its portfolio with some early-stage cancer treatment drugs.

Recently Pfizer Inc. has been reported to have focused on expanding its reach and consolidating its positions in the industry with a number of acquisitions situated particularly in the health care sector. In addition, the entire healthcare industry has been reshuffled by a series of mergers and purchases over the past twelve months. According to data compiled by Dealogic, the deals in the sector amount to more than 150 billion dollars globally for the year-to-date.

Pfizer Inc. was 0.13% up to close at 30.75 dollars per share on Friday, marking a one-year change of +2.19. According to the information published on CNN Money, the 18 analysts offering 12-month price forecasts for Pfizer Inc. have a median target of 34.50, with a high estimate of 41.00 and a low estimate of 29.00. The median estimate represents a +12.20% increase from the last price of 30.75.