Pfizer will acquire Wyeth in a cash-and-stock transaction valued at $50.19 per share, or a total of about $68 billion, as of the Jan. 26 announcement of the planned merger. The companies expect the transaction to close toward the end of this year.
New York and Madison, NJ-Pfizer will acquire Wyeth in a cash-and-stock transaction valued at $50.19 per share, or a total of about $68 billion, as of the Jan. 26 announcement of the planned merger. The companies expect the transaction to close toward the end of this year.
"The combination of Pfizer and Wyeth provides a powerful opportunity to transform our industry," said Jeffrey B. Kindler, chairman and chief executive officer (CEO) of Pfizer.
The combined company will have a presence in the areas of human, animal, and consumer health. It will offer products in therapeutic areas such as cardiovascular disease, oncology, women's health, central nervous system disorders, and infectious disease as part of a portfolio that includes 17 products with more than $1 billion each in annual revenue, according to a statement issued by both companies. The new Pfizer also will be the second-largest provider of specialty-care products, with a portfolio including the biologic etanercept (Enbrel), a pneumococcal conjugate vaccine (Prevnar) for infants and toddlers, sunitinib malate (Sutent) for cancer, ziprasidone hydrochloride (Geodon) for schizophrenia, and linezolid (Zyvox) for bacterial infection, the companies said.
The combined company also will have a strengthened pipeline for products being developed for diabetes, inflammation/immunology, oncology, pain, and Alzheimer's disease; increased resources for research and manufacturing; and an expanded global presence, according to the statement. Company officials expect that no drug will account for more than 10% of the combined company's revenue in 2012.
"With our combined biopharmaceuticals business, [the company] will lead in primary and specialty care as well as in small and large molecules," Kindler said. "Its geographic presence in most of the world's developed and developing countries will be unrivaled."
Based on IMS Health Inc. data, the combined company will be tops in terms of biopharmaceutical revenues in the United States, with an approximately 12% market share; in Europe, with an approximately 10% share; in Asia (except Japan), with an approximately 7% share; in Japan, with a 6% share; and in Latin America, with a 6% share.
Pfizer, founded in 1849, employs about 82,000 people in more than 150 countries. Its headquarters is in New York. In 2007, the company earned $48.4 billion in revenues.
Wyeth, founded in 1926, employs about 47,500 people in more than 100 countries. Its headquarters is in Madison, NJ. In 2007, the company earned $22.4 billion in revenues.
"Wyeth and Pfizer are highly complementary businesses, and together we can build the best diversified health-care company in the world," said Bernard Poussot, chairman, president, and CEO of Wyeth. "We believe we can better execute our strategy and can accomplish far more together in the years ahead than either company could have achieved on its own."
Poussot said that Wyeth has focused on prevention and wellness, and that the company's strengths include vaccines, nutritionals, and biologics.
Kindler, noting the diversification of Wyeth, added, "The people, products, and technologies that Wyeth brings to the new company will enhance our scientific capabilities and drive further commercial innovation to improve the health of the patients we serve."