Pfizer could try to acquire Actavis as back-up to a further bid for AstraZeneca

While speculation continues as to whether US pharma giant Pfizer (NYSE: PFE) will resume its attempts to buy UK pharma major AstraZeneca (LSE: AZN), Pfizer is looking to buy Ireland-headquartered generics major Actavis (NYSE: ACT), according to sources close to the companies quoted by Bloomberg.

Pfizer chief executive Ian Read has indicated he is “aggressively” seeking a purchase that will allow the company to access overseas cash and lower its tax rate, which would make Actavis a potential target since it re-domiciled to Ireland after buying Warner Chilcott in an $8.5 billion deal last year. The acquisiton was approved by the US FTC in December.

On the subject of a potential tax-efficient acquisition, Joan Campion, spokeswoman for Pfizer, said in an email: “We will continue to evaluate all opportunities, regardless of size, through the lens of value creation for our shareholders and enhancing the competitiveness of our business.”