Pharmas' 'hidden value' hailed as mega deals point to re-rating

Growth-focused UK equity managers have joined their income peers in backing pharmaceuticals as deals both real and rumoured send shares rocketing.

A multi-billion pound asset exchange between GlaxoSmithKline and Swiss peer Novartis, announced last Tuesday, was followed by AstraZeneca revealing it too is considering spinning off businesses worth $15bn as sector giants begin to focus on core businesses. Both Astra and Glaxo saw their shares jump as a result, with Astra having also seen a 9% jump on rumours US rival Pfizer has considered a $100bn bid for the company.  Astra shares then rose another 15% this morning after Pfizer revealed it had unsuccessfully attempted to renew discussions this weekend over combining the businesses....