This is because they belong to different tracks and there is no competition. Otherwise, there would be no point in listing this drug. The $120 billion acquisition can indeed be considered a high premium.
Of course, Chen Xuan’s medicine is not comparable to ordinary anti-cancer drugs, and it cannot be acquired for a mere $120 billion.
But anyway, in this anti-cancer drug project,
The fact that Pfizer is willing to invest such a large sum of money only shows that its current situation is indeed not very good, otherwise they would not have offered such a high price.
But as to whether this acquisition is worth it, Chen Xuan believes that this is a matter of opinion.
If there are no problems with Elsilan's anti-cancer project and it can be successfully approved for listing and its performance meets expectations, it will not be considered a loss.
At least now that the acquisition has been successful, Pfizer's market value has risen to $180 billion, and it is very likely to reach $200 billion.
Just now, it has increased by hundreds of billions of dollars, almost equivalent to the acquisition price of several Elsirans.
If we look at it from this perspective, the $120 billion acquisition is indeed not a loss, and can even be considered a very high-profit project.
Of course, just because an acquisition increases the market value by tens of billions of dollars does not mean that the project’s returns are that high.
In fact, Chen Xuan believes that the reason for this situation is that
That's because Pfizer's situation is rather special, and its stock price has been sluggish, even falling again and again.
When stock prices remain depressed for a long time, some stimulating good news is needed to bring stock prices back to normal.
Therefore, how much profit this anti-cancer drug project can generate is not the most important thing.
The most important thing is to restore the market's confidence in Pfizer.
Only by restoring confidence can Pfizer's stock price soar and return to its previous market value.
Therefore, Elsilan's anti-cancer drug project only plays a guiding role.
What really determines the market value is Pfizer itself.
If another company were to acquire it, the stock price would not have risen so dramatically.
Rather than being optimistic about this anti-cancer drug project, it is better to be optimistic about the future of Pfizer.
Of course, the launch of the lung cancer drug and its popularity also affected the surge in Pfizer's stock price.
The lung cancer drug has made everyone see the market potential of anti-cancer drugs, and related projects will naturally benefit as well. This also makes Pfizer's acquisition a hot topic.
After winning this anti-cancer drug project, Pfizer's good news became more attractive, which led to a surge in its stock price.
Pfizer probably acquired Elsilan at a high premium just to restore its stock price.
But the premise is that there will be no problems with this anti-cancer drug project. If any hidden dangers are exposed, the greater the rise now, the greater the fall will be in the future.
What’s more serious is that the future decline will be much greater than the current stock price increase. Then it’s not a question of whether it is worth it, but we have to start calculating how much loss this project will cause.
"Mr. Chen, do you think there is any problem with this project?"
"Will this anti-cancer drug project become a new growth point for Pfizer?"
Luo Shiyun asked curiously.
She also wanted to know what Chen Xuan would think of this project?
And will Pfizer be able to regain its former glory with this anti-cancer drug project?
“It’s hard to say, but I’m not optimistic.”
"If anything goes wrong with this project, Pfizer will suffer a lot."
"But no matter what the final result is, Pfizer will definitely focus on promoting this project, which will definitely drive the stock price up even more wildly."
Chen Xuan shook his head and said.
He only knew that there was something fishy going on with the anti-cancer drug project, but because he had too little information, he was unable to find out the real reason.
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