Times of corporate adjustments between big names in the pharmaceutical industry. Today the British Astrazeneca made purchases, while the American Pfizer sold shares. Meanwhile the Italian Recordati closes 2023 with net profit growing by 24,6%, proposing the distribution of a dividend brought to 1,20 euros from 1,15 euros and also looking at targeted M&A operations.
AstraZeneca, after purchasing a few days ago Amolyt Pharma for around 1 billion, today it has doubled with the acquisition for 2 billion dollars of Fusion Pharmaceuticals, English company that studies cancer treatments.
The American company offered 21 dollars for each share of Fusion Pharmaceuticals, a price that includes a 97% premium compared to the closing price on Wall Street last Monday. In addition, big pharma will pay an additional $400 million ($3 per share) upon reaching certain goals. Also counting this earn-out, the premium would rise to 126% of Fusion's share price as of Monday 18th. With this operation AstraZeneca aims to strengthen its portfolio of treatments for rare diseases and to expand its presence in oncology sector. Precisely in this field AstraZeneca had already invested, with the purchase last December of Gracell Therapeutics. After the news, Fusion Pharmaceuticals shares aligned with the price offered by AstraZeneca, with an acceleration of 100%. Towards the end of the European session the Nasdaq was trading at 20,99 dollars, up 97,28%. The AstraZeneca stock lost 0,58% in London.
Fusion Pharmaceuticals: targeted radiotherapy
La specialization di Fusion Pharmaceuticals is in the development of conjugated radios, that is, an innovative therapeutic modality that aims to deliver radioactive isotopes only to tumor cells, effectively localizing the treatment and limiting the damage of the radiotherapy on healthy cells. The most advanced treatment, FPI-2265, is in mid-level trials for the treatment of prostate cancer.
Pfizer collects $4 billion by reducing its stake in Haleon
Instead the American pharmaceutical company Pfizer has decided to raise cash and sell part of its stake in haleon, also a Stars and Stripes company, listed in London and Wall Street. Haleon is known for oral care products, including Sensodyne toothpastes, and for over-the-counter medications such as Voltaren and Multicentrum. Pfizer is the main shareholder of Haleon, which was born in 2022 from a spin-off of GSK. At the end of the operation, which should close on Thursday 21 March, Pfizer will decrease to 22,6% of Haleon from the current 32%, cashing in almost 4 billion dollars and still remaining the largest shareholder. Haleon currently has no other significant shareholders outside of Pfizer and GSK: the third shareholder, Mfs International, has 1,3%.
After the news, the title of haleon in London it is up 2,89% at 324,10 pounds. The shares that Pfizer has decided to see will be placed via a global public offering at a price of 3,08 pounds for ordinary shares and 7,85 dollars for American depositary shares, each of which is equivalent to two ordinary shares. In total, Pfizer will sell approximately 630 million shares of Haleon for $3,9 billion. Additionally, Sensodyne has agreed to buy back more than 102 million shares from Pfizer off-market for a consideration of around £315 million.
Recordati: dividend at 1,20 euros from 1,15
Staying in the pharmaceutical sector today was also the day of Recordati, which announced its final financial results for 2023, with a Net income growing by 24,6% and provided the financial targets for the two-year period 2024/2025, which are growing. Furthermore, it will propose to the shareholders' meeting the payment of a dividend of 1,20 euros per share, up compared to 115 the previous year.
The Italian multinational pharmaceutical company, founded in 1926, closed last year with revenues net of 2,08 billion euros, an increase of 12,4% compared to the 1,85 billion obtained the previous year or +14% on a like-for-like basis and at constant exchange rates (+9,6% excluding the impact of Turkey) , in line with the upper part of the guidance range revised upwards to May 2023.
Il gross operating margin increased by 14,4%, going from 672,8 million to 769,6 million euros and consequently, the marginality improved from 36,3% to 37%, reflecting higher operating leverage. The Milanese company ended 2023 with a Net income of 389,2 million euros, up 24,6% compared to the 312,3 million recorded the previous year, driven by operating performance and lower non-recurring costs compared to 2022. Adjusted net profit amounted to 524,6 million euros (+10,8%), above the guidance range. At the end of 2023 the debt the pharmaceutical company's net income had risen to 1,58 billion euros, compared to 1,42 billion at the beginning of the year, following the outlay of 707 million following the up-front payment of 245 million for the new sales and distribution agreement with GSK for the marketing of Avodart and Combodart/Duodart. In the whole of 2023 the generation of cash was equal to 456 million euros.
Regarding the financial estimates for the two-year period 2024/2025, Redordati communicated that for theexercise in progress estimates revenues of between 2,26 billion and 2,32 billion euros. Ebitda is estimated between 830 and 860 million euros, with a margin of around 37%, while the adjusted net profit is indicated between 550 and 570 million euros. With the current product portfolio, Recordati expects to generate revenues in excess of 2,4 billion euros by 2025, with an EBITDA margin of around 37%. Elements of the group's strategy remain unchanged, combining organic growth with targeted M&A operations and business development.
Recordati's board of directors has decided to propose to the shareholders' meeting the payment of a dividend 2024 (relating to the 2023 financial year) of 1,20 € per share (compared to 1,15 euros in 2022), from which the 0,57 euros detached in November 2023 as an advance must be deducted. The balance of the coupon, equal to 0,63 euros, will be paid on Monday 20 May 2024, with payment from 22 May.
