AstraZeneca looking to do several smaller deals

AstraZeneca (LSE: AZN, OMXS: AZN, NYSE: AZN) recently lowered its guidance for pipeline contribution into future revenues. Particularly the failure of Targacept in-licensed major depressive disorder drug candidate TC-5214 to reach primary endpoint in two Phase 3 studies was a major blow. The company seems to be ready to try to address its bleak future revenue outlook with external growth.

Reuters interviewed R&D President Martin Mackay who admitted that they are talking to a number of companies for various deals. Last major move was a 15.6 billion USD deal for MedImmune in 2007, which has failed to live up to expectations. This time the company looks poised to do a series of smaller (”low billions”) deals instead. This could include both acquisitions and in-licensing of drugs.

Bernstein analyst Tim Anderson is one of many to throw the name of Amylin Pharmaceuticals (NASDAQ:AMLN) into the mix as a potential target. A standard 30% premium would still leave the price tag below 5 billion. Nordic investors are already keeping Amylin on their radar as its newly approved type 2 diabetes drug Bydureon is set to compete against Novo Nordisk’s (OMX: NOVO B) Victoza. Reuters asked Mackay about Amylin, who merely said that GLP-1 diabetes drugs are an interesting class.

First in a series of large patent expirations that the Anglo-Swedish company is staring at is only weeks away as schizophrenia, bipolar disorder and add-on depression drug Seroquel (quetiapine), which grossed, almost 6 billion USD last year taking into account both once-daily and twice-daily formulation, is set to come off-patent this month in the United States and Europe (U.S. patent expiration date is March 26th 2012). The sustained-release version appears to maintain exclusivity until 2017, leaving the company with some advantages over generic competition.