U.K.-based pharmaceutical firm AstraZeneca witnessed a 2% drop in its share prices as a result of recent reports that it had approached its U.S. competitor Gilead Sciences for a potential merger to create one the world’s largest drug companies.
The deal would have united two of the largest drugmakers and brought them at the forefront of global efforts to fight the new coronavirus.
U.K.’s biggest drugmaker had informally approached Gilead last month to assess its interest in a potential tie-up. AstraZeneca didn’t define conditions for any transaction. While Gilead has considered the idea with advisers but no decisions have been made on how to progress with the same.
AstraZeneca has developed treatments for conditions from cancer to cardiovascular disease. Gilead meanwhile is the creator of a medication that had gained U.S. permission for use with coronavirus patients. Gilead has expressed that it is not currently excited in selling to or consolidating with another big pharmaceutical company and fancies to focus its deal strategy on partnerships and smaller acquisitions.