(Bloomberg) — A merger of drugmakers AstraZeneca Plc and Gilead Sciences Inc. is unlikely, according to analysts, after Bloomberg News reported that the U.K. company made a preliminary approach to its U.S. peer last month.Political opposition from both Britain and America could derail any attempt at a deal, especially given the backdrop of the Covid-19 outbreak, Citi said. The timing is also questionable, as while Gilead is in the middle of a turnaround, AstraZeneca is well positioned and has a strong pipeline, analysts said.Yet there is potential for synergies, and Gilead could compliment AstraZeneca’s portfolio in the areas of virology and inflammatory treatment, according to RBC.AstraZeneca shares fell as much as 3% in London, underperforming the Stoxx 600 Health Care Index. Gilead rose 4.6% in premarket trading.Jefferies, Peter Welford (hold rated on AstraZeneca)A deal is unlikely given the limited strategic rationale for AstraZeneca at this time, and while Gilead is in the middle of a turnaroundAstraZeneca has a decent pipeline, and an “operating leverage thesis” that is fueled by top-line growthStruggle to see either company’s motivation to continue talksCiti, Andrew Baum (buy rated on AstraZeneca)U.S. government would likely try to block any acquisition of a major U.S. biopharma company that is involved in pandemic therapeutic developmentEven greater political opposition seen from the U.K. governmentBarclays, Carter Gould (underweight rated on Gilead)Such a merger would be surprising, as Gilead’s new strategy has only started to take shape in the last six monthsRecent “mega-mergers” have been conducted by companies facing notable patent cliffs, which is not an issue for AstraZenecaRBC, Brian Abrahams (outperform rated on Gilead)A merger could potentially result in some synergiesGilead’s assets could add to AstraZeneca’s product portfolio, particularly in virology and inflammatory areasIntron Health Research, Naresh Chouhan (hold rated on AstraZeneca)While an acquisition of Gilead appears unlikely, it would be highly EPS accretive even at $115/share, but it would destroy considerable value and lead to AstraZeneca de-ratingBelieve $1.5 billion of synergies are easily possible and AstraZeneca can afford the deal, but don’t see it being in investors’ interestsGoldman Sachs, Terence Flynn (sell rated on Gilead)No view on likelihood of a potential deal, but the news is likely to intensify debate around large-scale M&A in the biopharma sectorContinue to see a limited path to upside for Gilead on fundamentalsBryan Garnier, Eric Le Berrigaud (buy rated on AstraZeneca)The most worrying aspect of the report is that it suggests that AstraZeneca doesn’t have everything it needs to deliver the “brilliant future almost everyone is now painting for the group”SVB Leerink, Geoffrey C. Porges (outperform rated on Gilead)Gilead is unlikely to be responsive to AstraZeneca’s outreachAdding more revenue through a lower multiple acquisition could offer value for AstraZeneca shareholders, and for the target’s shareholdersOther targets in biopharma, such as perhaps Biogen Inc., Amgen Inc. or Alexion Pharmaceuticals, may be equally suitable and could prove more amenable to overtures than Gilead(Adds commentary from Leerink, updates shares)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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Alnylam Pharmaceuticals (ALNY) has announced positive Phase 3 results from the ILLUMINATE-A study of lumasiran for the treatment of primary hyperoxaluria type 1 (PH1).PH1 is an ultra-rare orphan disease caused by excessive oxalate production, and elevated urinary oxalate levels are associated with progression to end-stage kidney disease and other systemic complications.The clinical data was presented at a virtual session of the European Renal Association-European Dialysis and Transplant Association (ERA-EDTA).Lumasiran, an investigational RNAi therapeutic, achieved the primary endpoint with a 53.5% mean reduction in urinary oxalate relative to placebo (p=1.7×10-14) and showed a 65.4% mean reduction in urinary oxalate relative to baseline.All tested study secondary endpoints were met, including the proportion of patients achieving near-normalization (84%) or normalization (52%) of urinary oxalate, compared with 0% in the placebo group.Lumasiran also showed an encouraging safety and tolerability profile, with no serious or severe adverse events (AEs) and with mild injection site reactions as the most common drug-related AE.Based on these results, Alnylam has now filed a New Drug Application (NDA) with the U.S. Food and Drug Administration (FDA). The FDA has granted a Priority Review for the NDA with a December 3, 2020 action date under the Prescription Drug User Fee Act (PDUFA).In addition, the Marketing Authorisation Application (MAA) for lumasiran has received Accelerated Assessment from the European Medicines Agency (EMA).The study “represents the sixth positive Phase 3 study for an investigational RNAi therapeutic, and we believe it further highlights the transformational potential of this modality as a whole new class of medicines” said Akshay Vaishnaw, President of R&D at Alnylam.“Overall, we think the data is solid, consistent with prior Phase I/II, and we anticipate rapid approval by the December 3rd PDUFA date” RBC Capital analyst Luca Issi told investors following the data release.However the analyst reiterated his Hold rating on the stock with a $150 price target, arguing that ALNY’s trailblazing phase 1 may actually end up providing a clearer path for rival Dicerna Pharma (DRNA)- which has a Strong Buy Street consensus.“We think DRNA is better positioned for PH given: 1) better dosing (fixed vs. weight-based dosing); 2) potential for broader label (can tackle all PH subtypes vs. only PH1); and 3) DRNA may capitalize on ALNY’s heavy lifting on building disease awareness” Issi explained. He has a buy rating on Dicerna with a $35 price target (73% upside potential).Analysts currently hold a cautiously optimistic Moderate Buy consensus on Alnylam with a $157 average price target (23% upside potential). The stock is currently trading up 11% year-to-date. (See ALNY stock analysis on TipRanks)Related News: AbbVie’s Rinvoq Beats Bristol-Myers’ Orencia In New Rheumatoid Arthritis Data Teva Wins Court Ruling Against Opiant, Emergent Bio On Narcan Nasal Spray 5 Promising Covid-19 Vaccines Picked For Trump’s Operation Warp Speed More recent articles from Smarter Analyst: * Tesla Sales Triple For China Model 3 Vehicle In May * Canada’s Bombardier Cuts 2,500 Jobs As Pandemic Stalls Travel Demand * Stitch Fix Earnings: Top Analyst Cautiously Optimistic Into Today’s Print * Oxford Biomedica Clinches Manufacturing Deal For AstraZeneca’s Covid-19 Vaccine

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One thing we could say about the analysts on Auxly Cannabis Group Inc. (CVE:XLY) – they aren't optimistic, having just…

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As New York city reopens Monday, California and some other states see coronavirus cases rise; a new poll reveals partisan divides over the pandemic; Brazil, a global hotspot for the virus, stops reporting coronavirus numbers. WSJ’s Shelby Holliday has the latest. Photo: Richard Vogel/AP

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The largest protests following the killing of George Floyd remained mostly peaceful this weekend; Minneapolis city council members agreed to begin the disbanding of the police department; in Seattle, a man drove a car into a crowd and shot a protester. Photo: Lindsey Wasson/Reuters

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Shareholders in Biomerica, Inc. (NASDAQ:BMRA) may be thrilled to learn that the analysts have just delivered a major…

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Top news and what to watch in the markets on Monday, June 8, 2020.

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Louisiana governor declared a state of emergency as Tropical Storm Cristobal came ashore Sunday. The storm is hampering some coronavirus efforts in the state while reducing oil production by about one-third in the Gulf of Mexico. Photo: Gerald Herbert/Associated Press

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We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st, near the height of the coronavirus market crash. In this article, we look at what those funds think […]

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Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors' consensus returns have been exceptional. In the following paragraphs, we find out […]

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