This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Pfizer's Head Fake: StockTwits.com

NEW YORK (TheStreet) -- AstraZeneca  (AZN) and Pfizer (PFE) investors held their breath Friday after Pfizer trading was briefly halted for news. Many investors anticipated that, after months of pursuit, Pfizer had won over AstraZeneca with a suitable offer.

But it was not to be.

lol, $PFE news not related to $AZN. thanks for playing! ? Aron Pinson (@MicroFundy) May. 16 at 12:12 PM

Instead of announcing a merger, Pfizer unveiled a new drug. The pharmaceutical giant said it would submit a new treatment for post-menopausal women with breast cancer. The new medication, called palbociclib, successfully blocked tumor growth when combined with another cancer drug letrozole in trials. The combined treatment proved better than letrozole alone.

@reefcap PFE is announcing they are submitting an NDA early for a cancer drug that has been in trials. No M/A stuff unfortunately. ? Michael (@YazzJr) May. 16 at 12:25 PM

Pfizer shares climbed more than 1% on the news. AstraZeneca edged higher.

Pfizer sweetened its offer for AstraZeneca last week to $84.47-per-share. This week, management shared a presentation displaying the benefits a combined company would enjoy and questioning AstraZeneca's ability to go it alone.

"The Board of AstraZeneca believes Pfizer is making an opportunistic attempt to acquire a transformed AstraZeneca without reflecting the value of its existing pipeline," management said in a statement this week. "The Board reiterates its confidence in AstraZeneca's ability to deliver on its prospects as an independent, science led business."

AstraZeneca has several drugs in its pipeline that it believes could be blockbusters, including three drugs to treat ovarian cancer and two to treat thyroid cancer. It also has several other cancer drugs in late stage development as well as treatments for asthma, arthritis, serious infections and diabetes, among other diseases. But Pfizer says those drugs don't warrant more than $106 billion.

In its presentation, released May 13, Pfizer made the case that AstraZeneca faces challenges that mitigate the potential value of its pipeline. The company said that AstraZeneca faces lost revenues of $14 billion when major drug patents expire in the near term. Pfizer also said that AstraZeneca's late stage pipeline is not differentiated enough and its early stage pipeline has many risks.

Some investors said Friday that, should AstraZeneca keep playing hardball, Pfizer is likely to walk away.

$PFE Guessing they tell $AZN to rot in hell!!! ? MrX (@MrX) May. 16 at 12:08 PM

But others believe that the merger could still happen. In its presentation, Pfizer indicated that it could hike the offer, yet again, if AstraZeneca management convinced it of the value of pipeline drugs.

"Pfizer believes there is compelling rationale for a combination and if AstraZeneca engages in conversations to provide Pfizer with a better understanding of its business and its prospects it may lead to a transaction that AstraZeneca can recommend."

At the time of publication the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,980.60 +20.03 0.12%
S&P 500 1,980.92 +2.58 0.13%
NASDAQ 4,452.4140 +2.85 0.06%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs