Pfizer may improve on offer for UK drug rival

Pfizer may come back to bid for British drug company AstraZeneca after its reported £60bn (€73bn) takeover approach was rejected, since a deal could make sense for the US pharmaceuticals giant as it seeks to build up its cancer franchise.

In addition to adding promising experimental medicines known as immunotherapies that boost the body’s immune system to fight tumours, acquiring AstraZeneca could also generate significant cost savings, according to industry analysts.

As a result, a deal at around a 25% premium to the current share price funded by cash, cheap debt and some stock, could boost Pfizer’s earnings immediately, they believe.