AstraZeneca (AZN.UK) stock dropped more than 6% after the pharma giant announced on Saturday it would buy US drugmaker Alexion Pharmaceuticals (ALXN.US) and its line of treatments for rare diseases for $39 billion in its largest ever deal. The offer would provide a 45% premium to Alexion’s closing price on Friday. It’s the largest deal for AstraZeneca since it was founded in a 1999 combination of British and Swedish companies, and would entrench its position among the world’s 10 biggest drugmakers. The purchase is “an important step in the history of the company,” CEO Pascal Soriot said on a call with reporters. “It’s a tremendous opportunity for us to accelerate our development of immunological” therapies.
AstraZeneca's (AZN.UK) shares fell as much as 9.2% and touched their lowest level since April. However buyers managed to halt declines at 74.22 level and price bounced off. Currently stock is testing resistance at 77.67 which previously acted as a support. If buyers manage to break above it, an upward impulse towards major resistance at 82.20 could be launched. This level is additionally strengthened by 50 SMA (green line) and 200 SMA (red line). On the other hand, failure to break higher could see the stock pull back towards aforementioned support at 74.22 area. Source: xStation5
