This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Pfizer, Forget AstraZeneca -- Check Out These Biotechs: StockTwits

NEW YORK (TheStreet) -- Looks like Pfizer  (PFE - Get Report) won't be trading its American citizenship for AstraZeneca's  (AZN - Get Report) U.K. tax rate anytime soon. But investors on say that's just fine. There are plenty of other biotech beauties with attractive foreign tax rates.

$PFE Thank you $AZN for rejecting the offer. ? Jeffrey Pao (@duffryder7) May. 19 at 09:28 AM

AstraZeneca rejected a $118 billion "final offer" from Pfizer Monday morning, sending its shares down 11% in the process and boosting Pfizer's stock about 2%. In a press release, AstraZeneca chairman Leif Johansson said that Pfizer didn't value AstraZeneca's drugs and pipeline as much as its corporate tax rate as a U.K.-based company.

"Pfizer's approach throughout its pursuit of AstraZeneca appears to have been fundamentally driven by the corporate financial benefits to its shareholders of cost savings and tax minimization," Johansson wrote. "From our first meeting in January to our latest discussion yesterday, and in the numerous phone calls in between, Pfizer has failed to make a compelling strategic, business or value case."

Pfizer stood to save a billion dollars a year on taxes by reincorporating in AstraZeneca's home, by some estimates. Britain has an effective 21% corporate tax rate compared to the U.S.'s 40%, according to a KPMG study.

The rejection may be the end of the deal. Pfizer said it will not take its final offer of £55 per share ($93 per share) -- which was increased by $15.3 billion and included 12% more cash than before -- directly to the board in an attempt at a hostile takeover of the company. Pfizer's proposal expires in seven days, at 5 p.m. London time on May 26.

AstraZeneca $AZN Chairman Johansson sees no prospect of Pfizer $PFE deal before May 26th or extension of that deadline ? FinancialJuice (@FinancialJuice) May. 19 at 10:18 AM

If avoiding high U.S. corporate taxes was truly the driving factor for pursuing a merger with a British drug company, there's plenty of foreign biotechs with attractive tax rates that Pfizer -- with its near $189 billion market cap -- could pursue, say StockTwits' users.

One name bandied about is Amarin (AMRN). The biotech firm, which has a $230 million market cap -- a drop in the bucket compared to AstraZeneca's $91.6 billion market cap -- is headquartered in Dublin. The effective corporate tax rate in Ireland is 12.5%.

$AMRN With $AMRN headquarter in Dublin, $PFE Can save a lot of tax after acquiring $AMRN! ? SkyIsLimit (@SkyIsLimit) May. 19 at 08:02 AM

$PFE you can have $AMRN for 8B..:) A savings of $110B plus a potential blockbuster combo therapy with Lipitor+Vascepa..:) ? Andoy Pordoy (@Pordoy) May. 19 at 08:32 AM

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
AZN $69.94 -0.19%
PFE $35.00 1.36%
AAPL $126.37 2.53%
FB $83.20 -0.13%
GOOG $552.03 0.67%


DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

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