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  • September 2014 (Revised February 2015)
  • Case
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Pfizer and AstraZeneca: Marketing an Acquisition (A)

By: John A. Quelch and James Weber
  • Format:Print
  • | Language:English
  • | Pages:15
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Abstract

In 2014, Pfizer proposed a friendly acquisition of AstraZeneca, but the AstraZeneca board resisted over price and strategy concerns. Was this good for pharmaceutical consumers? Pfizer, like pharmaceutical companies in general, faced difficulties in growing sales due to the challenges of developing new drugs. Over the previous decade or more, Pfizer had pursued acquisitions as a way to acquire new drugs, increase sales, and to reduce costs by combining operations and cutting staff. Pfizer, a U.S. company, was also interested in AstraZeneca, a U.K. company, as a way to reduce its corporate taxes. In recent years, AstraZeneca had significantly strengthened its pipeline of potential new drugs and its board felt it was in a strong position to go it alone. The company's CEO also indicated that an acquisition would be disruptive to its drug development efforts and delay new drugs coming to market. U.K. politicians expressed concerns over downsizing and job losses in the economically important pharmaceutical sector. The case allows readers to explore who benefits from a potential acquisition (shareholders, employees, drug consumers) and which of these stakeholders should be considered when deciding on an acquisition.

Keywords

Health Care Policy; Mergers And Acquisitions; Marketing; Government Relations; Crisis Management; Decision Making; Growth and Development; Management; Markets; Strategy; Pharmaceutical Industry; United Kingdom; United States

Citation

Quelch, John A., and James Weber. "Pfizer and AstraZeneca: Marketing an Acquisition (A)." Harvard Business School Case 515-007, September 2014. (Revised February 2015.)
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About The Author

John A. Quelch

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Related Work

    • September 2014
    • Faculty Research

    Pfizer and AstraZeneca: Marketing an Acquisition (B)

    By: John A. Quelch and James Weber
    • October 2014 (Revised May 2017)
    • Faculty Research

    Pfizer and AstraZeneca: Marketing an Acquisition (A) & (B)

    By: John A. Quelch
    • September 2014 (Revised February 2015)
    • Faculty Research

    Pfizer and AstraZeneca: Marketing an Acquisition (A)

    By: John A. Quelch and James Weber
Related Work
  • Pfizer and AstraZeneca: Marketing an Acquisition (B) By: John A. Quelch and James Weber
  • Pfizer and AstraZeneca: Marketing an Acquisition (A) & (B) By: John A. Quelch
  • Pfizer and AstraZeneca: Marketing an Acquisition (A) By: John A. Quelch and James Weber
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