By Breakingviews
AstraZeneca (AZN) is taking a precision approach in the race to treat cancer. The UK drugmaker on Thursday evening said it will pay up to $6.9 billion to work with Daiichi Sankyo (DSKYF) on a treatment for breast cancer. Compared to the risk of an acquisition, it’s a relatively painless way of expanding in a hot area.
Cancer treatments are a priority for big pharmaceutical companies, as innovative drugs should be relatively immune to pricing pressure caused by healthcare reform in the United States. The snag is that deals are expensive and risky: