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AstraZeneca PLC heart pill gets US approval while Pfizer bid battle turns political

Published: 20:22 06 May 2014 AEST

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Bid target AstraZeneca (LON:AZN) has received US approval for Epanova, its treatment for heart disease.

The US Food and Drug Administration (FDA) has approved Epanova as an adjunct to diet to reduce fatty acid (triglyceride) levels in adults with severe hypertriglyceridaemia.

Nearly four million American adults currently have severe hypertriglyceridaemia and this figure continues to rise, as the prevalence of associated conditions, such as obesity and diabetes, continues to grow, Astra’s statement said.

"The FDA's approval of EPANOVA is good news for the significant and growing population with severe hypertriglyceridaemia as it offers physicians and their patients an important new treatment option that has been proven to be effective in clinical trials," said Briggs Morrison, executive vice president, Global Medicines Development and chief medical officer at AstraZeneca.

"This approval is a significant milestone for AstraZeneca, as it strengthens our existing portfolio of cardiovascular medicines. We are committed to further assessing the clinical profile of EPANOVA and to identifying other patient groups it may benefit," he added.

It also won’t do the company any harm in its attempts to stay out of the clutches of its larger US rival, Pfizer, which is trying to persuade the directors of Astra to back a bid worth £50 a share.

As is often the case when a “national champion” of a particular industry attracts the interests of an overseas buyer, the potential dust-up has taken on a political edge, with Ed Miliband, leader of the Labour Party, accusing UK prime minister David Cameron of acting as a “cheerleader” for the US pharmaceuticals group.

Miliband called for blockbuster mergers to face more stringent tests to determine whether they are in the public interest.

Pfizer has offered assurances that 20% of Astra’s research & development workforce would remain UK-based; Cameron welcomed those assurances on Friday, describing them as “robust”, whereas Miliband described them as “paper thin” in an interview on the BBC’s Andrew Marr show.

A spokesman at Number 10 Downing Street accused Miliband of “putting politics before the national interest” and said the government’s policy of engaging in discussions with both companies even before a formal bid has been made is aimed at avoiding “previous governments’ failures in these types of situation”.

Shares in Astra were down 2.1% at 4,708p in late morning trading.

The US drugs firm issued first quarter results on Monday that showed post-tax profits down 15% at US$2.32bn. Earnings per share fell to 36 cents from 38 cents the year before.

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