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edesignuk
Jan 26, 2009, 07:28 AM
US drugmaker Pfizer is to buy rival Wyeth in a deal worth $68bn (50bn), the two companies have announced.

The merger will allow Pfizer to protect itself from a drop in revenues when its popular drug Lipitor and other products lose patent protection.

It will also help Pfizer diversify its product portfolio, thanks to Wyeth's presence in biotech drugs and vaccines.

Pfizer, the world's biggest drugs firm, also makes Viagra, while Wyeth produces antidepressant Effexor XR.

It is the biggest merger announced on Wall Street since the credit crunch, and the largest merger in the pharmaceutical industry since Pfizer bought Warner-Lambert for $93.4bn in 2000. BBC (http://news.bbc.co.uk/1/hi/business/7850680.stm).

No matter the economic turmoil, people will always need their horribly over priced drugs, and there's still big money being thrown around to dominate. Marvellous.

garybUK
Jan 26, 2009, 07:45 AM
Makes you thankful for the NHS :)

BoyBach
Jan 26, 2009, 08:39 AM
How long before they go to the government, cap in hand? Too big to fail means too big to exist.

GoCubsGo
Jan 26, 2009, 08:41 AM
BBC (http://news.bbc.co.uk/1/hi/business/7850680.stm).

No matter the economic turmoil, people will always need their horribly over priced drugs, and there's still big money being thrown around to dominate. Marvellous.

Yes but they also do very good things from time to time.

How long before they go to the government, cap in hand? Too big to fail means too big to exist.

I believe our government is halting earmarking for companies ... not that it means they won't get their money, it just means they have to do it sort of under the radar.

iAlan
Jan 26, 2009, 09:40 AM
This will be one of the big mergers to play out in recent memory. Not sure if it will make it past regulators in all geographies, and what will have to be divested before approval is granted, but it will be interesting to watch the markets react to this in the coming days

And let's not forget that although there is a lot of negative press and opinions around drug pricing, it isn't till you (or someone you care about) really need access to a drug to cure, extend or make quality of life that much better, that you realize the value of medicine.

Although I hope that day never comes for anyone

BoyBach
Jan 26, 2009, 10:52 AM
And let's not forget that although there is a lot of negative press and opinions around drug pricing, it isn't till you (or someone you care about) really need access to a drug to cure, extend or make quality of life that much better, that you realize the value of medicine.


Which is precisely why I say drug companies are too important to be allowed to merge into a few 'mega-companies'.

The outcome of financial failure and/or the collapse of one is potentially too dangerous to our health. And too expensive for taxpayers.

Drumjim85
Jan 26, 2009, 10:56 AM
at least they're not trying to get the bail out money.

BoyBach
Jan 26, 2009, 11:02 AM
at least they're not trying to get the bail out money.


Not yet, at least. But by merging to create a mega-company they potentially become to big to be allowed to fail.

Pfizer today revealed a 90% slump in its fourth-quarter profits to $266m, hit by a $2.3bn bill to settle charges with US prosecutors over the mislabelling of products, including anti-inflammatory treatment Bextra. Pfizer's shares slipped 4% in pre-market trading.

http://www.guardian.co.uk/business/2009/jan/26/pfizer-pharmaceuticals


What can I say, I'm a cynic!