Biotech Values

[DewDiligence]

Motive for AZN’s Pearl acquisition: Symbicort, approved in 2006, is AZN’s second-biggest drug ($3.3B annualized run rate in 1Q13), but it’s getting a little long in the tooth. LABA/LAMA combination drugs are expected to take share from LABA/ICS combinations such as Symbicort and Advair, and AZN needs to be a player in that market.

A market could also develop for triple-combinations drugs including a LABA, LAMA, and an ICS; Pearl has such a combination (called PT010) in its early-stage pipeline.

AZN’s own PR on the acquisition:
http://www.astrazeneca.com/Media/Press-releases/Article/20130610--az-acquire-pearl