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Pfizer - Wyeth: Good Deal – Bad Deal?
Oxford, UK January 23, 2009 - If Pfizer and Wyeth merge to create a $60 billion company, will it be a good deal or a bad deal? Fintan Walton, PhD, CEO of PharmaVentures, says, ‘This is potentially a bad deal for both companies. By 2012, the merged company will have lost $25bn with products coming off-patent with the current pipeline only replenishing $2.5bn in that time’.
Dr Walton continues, ‘It will be a major distraction to the merged entity and will mean that the merged company will potentially lose the opportunity to buy up biotechnology companies and their pipelines - leaving their competitors to do so. So, post merger, the rich pickings would have gone elsewhere’.
On the positive side, any potential merger would allow Pfizer to gain access to new therapies, for instance to vaccines, and to share in the remaining years of Enbrel, which is co-marketed with Amgen. Pfizer have complementary Central Nervous System (CNS) portfolios, and so the combined company will have a strong CNS presence. Dr Walton says, ‘As a combined company, there would be 20 products in Phase III, which sounds impressive, but they will need to rationalise to make the business work’.
PharmaDeals Review will be reporting on any potential monopoly issues, although the PharmaVentures’ business analysts say there is no obvious bar to any merger going ahead.
About PharmaVentures PharmaVentures
PharmaVentures (www.pharmaventures.com) assists pharmaceutical and biotechnology companies across the world in all aspects of deal making. The Company’s core business is the provision of tailored transaction advisory services to the Life Science industry. PharmaVentures is based in Oxford, UK, and employs over 35 people. With offices in the USA, the Company works for a variety of clients from start-ups to global corporations. PharmaVentures publishes PharmaDeals Review (ISSN 1756-7874 online publication) providing expert opinion and analyses in the pharmaceutical and biotech field.
Contact Information Fintan Walton, PhD Mob Phone: +44 (0) 7887 548820
PharmaVentures Magdalen Centre Oxford Science Park Oxford OX4 4GA, UK Related article: ‘Wyeth Acquisition Could be Major Distraction for Pfizer’, PharmaDeals Review, Issue 103, published 23 January 2009.
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Note to Editors
PharmaVentures Limited (http://www.pharmaventures.com) is a leading international corporate advisory firm supporting its clients' growth ambitions in the health care industry. It has considerable experience and expertise in the field of tangible and intangible transactions, providing advice at both a strategic level, as well as acting as advisor and broker at an implementation level. Its transactional experience includes licensing, joint ventures, mergers, acquisitions and divestments. Its clients are worldwide, including Europe, the USA and AsiaPacific. Clients range from start-ups to global pharmaceutical corporations, diversified industrial corporations, investment houses and government bodies. Its subsidiary PharmaTelevision produces the highly popular PharmaDeals® range of intelligence products including analysis tools and reports as well as the world's first dedicated online pharmaceutical television channel PharmaTelevision® (http://www.pharmatelevision.com).
Now in its 18th year, PharmaVentures is based in Oxford, UK, and employs over 30 people.