26 May 2014
Last updated at 14:45 GMT
AstraZeneca rejected a final offer from Pfizer earlier this month, saying the proposal undervalued the company and its "attractive prospects".
Nevertheless, in recent weeks some AstraZeneca shareholders had said they wanted the firm to engage with Pfizer.
Pfizer said in a statement: "Following the AstraZeneca board's rejection of the proposal, Pfizer announces that it does not intend to make an offer for AstraZeneca."
Under UK takeover rules, Pfizer must wait six months before making a fresh bid for AstraZeneca, unless invited to do so by the company.
By then AstraZeneca shareholders believe the US government will have gone a long way to closing the tax loophole which was one of the reasons for Pfizer being so attracted to AstraZeneca.
Divided opinion Pfizer encountered opposition to its bid on a number of fronts. Its chairman, Ian Read, spent two days being questioned by MPs on both the Commons Business Select Committee and the Science Committee, as well as doing the rounds to win over major shareholders.
A leading scientist, the president of the Royal Society, Professor Sir Paul Nurse, said Pfizer's commitments to maintain research and jobs should it take over AstraZeneca were "vague" and insufficient.
Labour Party leader Ed Miliband said assurances given during the lobbying visit about safeguarding research and preserving jobs at AstraZeneca were "worthless".
Prime Minister David Cameron said he was "neutral" about the proposed bid.
However, investors including BlackRock, Legal & General, Axa and Schroders made it clear that they wanted the company to engage with Pfizer, although other leading investment groups were against a bid at the price offered.
Many view the price per share offered as a few pounds too low, saying a figure of £58 would have been acceptable to many.
Pfizer drops its AstraZeneca bid
US drugs giant Pfizer has withdrawn its £55 a share, £69bn takeover bid for UK pharmaceutical firm AstraZeneca.
The US company past a bid deadline on Monday.AstraZeneca rejected a final offer from Pfizer earlier this month, saying the proposal undervalued the company and its "attractive prospects".
Nevertheless, in recent weeks some AstraZeneca shareholders had said they wanted the firm to engage with Pfizer.
Pfizer said in a statement: "Following the AstraZeneca board's rejection of the proposal, Pfizer announces that it does not intend to make an offer for AstraZeneca."
Under UK takeover rules, Pfizer must wait six months before making a fresh bid for AstraZeneca, unless invited to do so by the company.
By then AstraZeneca shareholders believe the US government will have gone a long way to closing the tax loophole which was one of the reasons for Pfizer being so attracted to AstraZeneca.
Divided opinion Pfizer encountered opposition to its bid on a number of fronts. Its chairman, Ian Read, spent two days being questioned by MPs on both the Commons Business Select Committee and the Science Committee, as well as doing the rounds to win over major shareholders.
A leading scientist, the president of the Royal Society, Professor Sir Paul Nurse, said Pfizer's commitments to maintain research and jobs should it take over AstraZeneca were "vague" and insufficient.
Labour Party leader Ed Miliband said assurances given during the lobbying visit about safeguarding research and preserving jobs at AstraZeneca were "worthless".
Prime Minister David Cameron said he was "neutral" about the proposed bid.
However, investors including BlackRock, Legal & General, Axa and Schroders made it clear that they wanted the company to engage with Pfizer, although other leading investment groups were against a bid at the price offered.
Many view the price per share offered as a few pounds too low, saying a figure of £58 would have been acceptable to many.
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