Investors are left wondering what will happen to the Medicis stock market if Pfizer’s acquisition of Medicines is approved.
It is not yet clear if Pfizers stock price will rise or fall.
The deal is expected to be approved by the Australian Securities and Investments Commission (ASIC) next week.
Pfizer and Medicines Australia were in talks for several years about buying the company and its shares.
Under the deal, Pfizer would have acquired the Medici stocks and then use the proceeds to invest in Australian businesses, like medical research and development.
MMA promoter Mark Coleman said the deal was important because it would give the Australian public more choice and help to develop new drugs.
“What this means is that if the Australian government decides to invest money in the Australian economy and it does not meet certain criteria, we can still get the same benefit,” he said.
In its application to ASIC, Pfizers argued that the Medicins company was undervalued because of its focus on Australia.
However, a spokesperson for Pfizer said that the acquisition was based on its own valuation model.
ASIC has not yet made a decision on whether to approve the deal.
Topics:business-economics-and-finance,finance-and/or-investment,federal-government,industry,health-administration,drugs-and-(pharma)-drugs,healthcare-facilities,health,science-and—technology,government-and_government,australiaMore stories from New South Wales