In $39B deal, AZ looks to grow rare disease business while Alexion’s investors gain value recognition

AstraZeneca’s planned $39.4 billion takeout of Alexion gives the biotech’s shareholders an exit from a stock that’s largely been tracking sideways for years despite topline growth, and provides the pharma with a rare disease unit that it can expand through its global commercial infrastructure — particularly in China.

The market reaction, however, indicates that neither company’s investors are confident in the deal. On the London Stock Exchange, shareholders eliminated more than $10 billion in market cap from AstraZeneca plc (LSE:AZN; NASDAQ:AZN) on Monday, while Alexion Pharmaceuticals Inc. (NASDAQ:ALXN) closed the day up $35.33 (29%) to $156.31, well below the implied $175 per share offer from AZ. ...