AstraZeneca shares slump as investors stumped by $39billion bid for Alexion

Astra’s stock has also been under pressure amid questions over the efficacy of the potential Covid-19 vaccine being developed with Oxford University and the handling of late-stage trials. The teams believe chances of the shot being available by the end of the year remain “pretty high”.

Russ Mould, investment director at AJ Bell, said: “You would think AstraZeneca could do without any distractions as it looks to address some of the scepticism which has built up around the Covid vaccine.

“Alexon has failed to attract a suitor for some time, despite shareholder pressure, so investors might see AstraZeneca as a bit of a sap for pitching up with a 45% premium. It is also an immunology-focused business which will stick out like a sore thumb against the rest of AstraZeneca’s portfolio.

“Alexon also has expertise in rare diseases, adding to AstraZeneca’s range of capabilities, and its technology can be applied outside of its rare disease focus, though this a prospective long-term benefit which will take time to accrue.”

Neil Wilson, chief market analyst of markets.com, was more upbeat: “Whilst the 45% premium may seem high, it’s probably not that significant when you consider the sector and the cash flow generation and revenue growth. It’s a big turnaround from the dark days of six years ago when Pfizer tried to land AstraZeneca.”

The move is seen as a way for Astra to take Alexion’s specialist treatments into untapped countries, especially China, and has boosted confidence that Pascal Soriot, the CEO who has seen shares rise 87% since fending off Pfizer’s 2014 hostile takeover approach, is more likely to remain at the helm beyond a rumoured 2023 departure.