Pharmaceuticals giant AstraZeneca has agreed to buy U.S. biotech company MedImmune for more than $15 billion in an effort to boost the company's weak portfolio of developmental drugs and enter the market for vaccines.

The deal appears to make sense in the long run for AstraZeneca, which will gain an edge in biological medicines and vaccines, two of the fastest-growing areas of drug research.

But near-term, the acquisition does little to benefit the pharma company's weak late stage development pipeline, and analysts say the acquisition price, at $58 a share, is steep. In total, the purchase price is nearly 11 times expected MedImmune's expected 2007 sales.

Synergies as a result of the acquisition are expected to total about $500 million annually by 2009, when the deal should start adding a boost to AstraZeneca's earnings.

Speculation about a MedImmune sale was fueled in February after billionaire Carl Icahn said he owned 2.8 million shares of the company.

AstraZeneca Plc has agreed to buy U.S. biotechnology company MedImmune Inc. for more than $15 billion in its biggest transaction since the creation of the Anglo-Swedish drugs group in 1999.

The all-cash deal, announced on Monday, is the boldest move yet by AstraZeneca Chief Executive David Brennan who aims to boost the company's depleted drug portfolio by moving deeper into biotech medicine and taking a first step into vaccines.

(Continue reading this story on Reuters)

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