AstraZeneca, Gilead merger likely to hit political, strategic hurdles

A merger of drugmakers AstraZeneca and Gilead Sciences is unlikely, said analysts, after reports said the UK firm made a preliminary approach to its US peer last month.

Political opposition from both the UK and the US could derail any attempt at a deal, especially given the backdrop of the Covid-19 outbreak, Citigroup said.

“US government would likely try to block any acquisition of a major US biopharma company that is involved in pandemic therapeutic development. Even greater political opposition is seen from the UK government,” wrote Citigroup analyst Andrew Baum.