The Board of AstraZeneca Plc has rejected Pfizer's fresh proposal which raised an indicative value of £50 ($84.47) per AstraZeneca share, as against earlier offer of £46.61 ($76.62) per share of AstraZeneca.

The financial and other terms described in the Proposal are inadequate, substantially undervalue AstraZeneca and are not a basis on which to engage with Pfizer. The large proportion of the consideration payable in Pfizer shares and the tax-driven inversion structure remain unchanged. Accordingly, the Board has rejected the Proposal.

Leif Johansson, chairman of AstraZeneca, said: “AstraZeneca continues to invest significantly in research, development and manufacturing in the U.K., Sweden and the US. We are showing strong momentum as an independent company, in particular with our exciting, rapidly progressing pipeline, which the Board believes will deliver significant value for shareholders. Pfizer’s proposal would dramatically dilute AstraZeneca shareholders’ exposure to our unique pipeline and would create risks around its delivery. As such, the Board has no hesitation in rejecting the Proposal.”

Shareholders are strongly advised to take no action. There can be no certainty that an offer will be made nor as to the terms on which any offer might be made.