The deal is an attempt to compensate for several research setbacks recently, and it also ends a rollercoaster ride at MedImmune, which been under pressure from investors, including Carl Ichan, after several disappointments. The price, by the way, is $58 a share, well above the Friday closing of $48.01.

This is a statement from Dave Brennan, AZ’s ceo: “This acquisition represents a transformational step to deliver our biologics strategy sooner than anticipated. It creates a leading fully integrated biologics and vaccines business with critical mass and enhances AstraZeneca’s R&D science base through which we will deliver a stronger product pipeline. MedImmune adds an exciting existing pipeline, including 2 late-stage products, great expertise in biologic drug development and state of the art manufacturing facilities.”

What exactly does AstraZeneca get? $500 million in projected ’synergies’ by 2009; a follow-up to Synagis, and a refrigerated formulation of FluMist, which may be launched in time for the US 2007-2008 flu season. The acquisition also increases the proportion of biologics in AZ’s pipeline from 7 percent to 27 percent and enlarges its total pipeline to 163 projects.

This doesn’t sound like a lot, given the price, according to Merrill Lynch analysts, who wrote this in a research report quoted by Reuters: The deal “does little to address the weakness in the Phase III pipeline and exhausts the company’s cash pile for share buybacks and product acquisitions.”

David Mott, MedImmune’s, ceo, and Jim Young, who heads R&D, will remain and it’s expected that other members of MedImmune’s senior management will stay with the company following the closing. Mott will take a leadership role within AstraZeneca.

Here’s the complete statement.[tags]AstraZeneca, MedImmune[/tags]