AstraZeneca-Alexion Deal to Close July 21 After U.K. Approval

The U.K. Competition and Markets Authority has given AstraZeneca (AZN) the green light to proceed with its acquisition of U.S.-based Alexion Pharmaceuticals (ALXN). The deal is expected to close on July 21. Upon closing, Alexion shares will be delisted from the Nasdaq.

“We are very pleased to have secured this critical final clearance from the U.K. Competition and Markets Authority for the acquisition of Alexion. We look forward to the imminent closing of the transaction so that we may pursue our shared ambition to bring more innovative medicines to patients worldwide and begin AstraZeneca’s next chapter of growth,” commented AstraZeneca CFO Marc Dunoyer.

AstraZeneca announced its plans to acquire Alexion in December 2020. Shareholders of both companies approved the transaction in May 2021. AstraZeneca counts on the Alexion acquisition to bolster its position in the rare diseases treatment market. It plans to set up a group dedicated to rare diseases based in Boston, U.S. (See AstraZeneca stock charts on TipRanks).

The company notes that of the more than 7,000 rare diseases known currently, only 5% have FDA-approved treatments.

AstraZeneca plans to update its 2021 financial outlook to include the combined company in due course.

On July 12, Jefferies analyst Peter Welford reiterated a Buy rating on AstraZeneca stock and raised the price target to $68.50.

AstraZeneca’s anti-anemia drug candidate roxadustat is scheduled for a review by the FDA’s Advisory Committee on July 15 (today). Welford expects the committee to recommend roxadustat approval and sees the drug as a more than $1 billion opportunity.

Consensus among analysts is a Moderate Buy based on 2 Buys. The average AstraZeneca price target of $68.50 implies 14.55% upside potential to current levels.

AZN scores a 5 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to perform in line with market averages.