In what seems to be predicted as the biggest merger of the season amidst global meltdown, the companies in the spotlight here are Pharmaceutical Giant Pfizer and popular vaccine maker Wyeth. It is all over the places, in the media, in the papers, almost on everyone’s lips that Pfizer will shake hands with one of its rival Wyeth. Although people are speculating about it, there are also reports that this deal may not materialize, taking in to consideration the market unpredictability, and wobbly economic Global state of affairs. Pfizer, one of the leaders in the pharma markets is already used to mergers, when they signed a collaboration deal with Warner-Lambert for $87bn in 2000.
Pfizer specializes in making Viagra, and cholesterol drug Lipitor. If this deal is taken onto the next level from papers then there are chances that this would be the biggest merger in the pharma industry and the sales of the new uni power can go up to $70bn. they can then singlehandedly produce a wide range of trusted medicines like Enbrel which treats arthritis and pneumonia vaccine Prevnar. The acquisitions, if at all it takes place will happen in such a way that Pfizer pays Wyeth in stock and cash both.
It is believed that this merger, if it takes place will really benefit the pharma Viagra giant, as they help sustain Pfizer’s sale when the patent on the cholesterol drug gets done with in 2011. This deal has a value of more than $60bn and can give major competition to almost every other pharmaceutical company.
At a time when in New York trading market, Pfizer prices came to $ 16.84, Wyeth share price had increased to $41.85. Today Pfizer is estimated to have a worth of $116bn and Wyeth stands high with a whooping $56bn.
Well we hope that this merger makes both giants happy and the investors profitable.
