Reports: Pfizer may raise bid for AstraZeneca

Several published reports Sunday said Pfizer is considering raising its $100 billion-plus offer for British-based AstraZeneca as it races to meet a May 26 deadline under United Kingdom takeover rules under which it must make a formal possibly hostile bid or walk away.

M&A frenzy as Pfizer amasses AstraZeneca critics

A story on The Wall Street Journal's website cited anonymous sources close to the matter as did Reuters news service. AstraZeneca has already rebuffed Pfizer more than once and a mammoth merger of the two pharmaceutical giants could be doomed if the latest advance is rejected, the stories said.

Pfizer -- the maker of erectile dysfunction drug Viagra, among other blockbuster drugs -- first approached AstraZeneca, which makes cholesterol drug Crestor, among others, last year and most recently -- April 28 -- made a cash-and-stock bid of nearly $106 billion to join forces. Despite a 30% runup in its stock price so far this year based on speculation about the merger, AstraZeneca promptly rejected the bid.

AstraZeneca said it concluded that the proposal "very significantly undervalued" the company "and its prospects."

Pfizer wants to merge with AstraZeneca to form a British-based holding company with management in New York and London. The shares would continue to trade on the New York Exchange here.

Ultra-low interest rates have been the catalyst for a number of mergers and acquisitions within the pharmaceutical industry recently. Earlier this year, Swiss drugmaker Novartis agreed to swap its vaccine business for GlaxoSmithKline's cancer drug unit and sold its veterinary drug arm to Eli Lilly.

One big driver for joining forces is to cut costs as brutal competition from generic drug makers intensifies. Some of the biggest drug makers are being hit by revenue declines as their blockbuster drugs of recent decades lost patent protection.