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Pfizer, Wyeth merger bad idea?

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Fortune writer John Simons opines that a rumored merger of Pfizer and Wyeth would be all wrong for both companies. In his view, a merger would amount to a marriage of weaknesses. Pfizer needs blockbusters to overcome looming patent expirations and Wyeth has recently been failing to deliver.

"Would the idea behind the merger be that misery loves company?" says Standard & Poors pharma analyst Herman Saftlas. "Most mergers in this sector haven't panned out from an earnings growth perspective. But even worse, these two companies are in the same boat."

- read Simon's opinion piece

Related Articles:
Wyeth buyout a good deal for Pfizer? Report
What's next for Pfizer? Report
Wyeth stumbles badly trying to develop new drugs. Report


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More stories about Pfizer   Wyeth   patent expirations   drug development   Mergers and Acquisitions  

Comments

Being a former Warner-Lambert person who went through the take-over by Pfizer, I don't understand what the Pfizer shareholder are thinking. The Big P does this to secure drugs that have several years of patent protection and good sales. People forget that the big seller for them, Lipitor, was a W-P drug, and the primary reason for the take-over of W-P. Pfizer can't develop their own drugs, so they buy up companies that can, then destroy them.

Buying a pipeline of good biotech is a great idea... if some people at Wyeth have to go to so be it.... it is a tough world as WL anon above noted

If some people have to go...Wyeth does not need to be bought, Pfizer just can't make drugs. Maybe they should focus on learning on how to develop drugs instead of buying them. And laying off the people that make the drugs isn't a good long term idea. They'll swallow up Wyeth, spit out the good, and then be stuck in two years. Whose next?

Pfizer sold its consumer products to J& J several years ago and it has no nutraceutical division. the plan of pfizer is to be present again in the consumer sales business and nutraceutical industry. on that regard, acquisition or merger with wyeth is a better idea because the latter have such in its portfolio.

So much for too big to fail. Pfizer has been failed company for several years. Too bad the FTC will not stop this phagocyte from digesting more companies. I can't believe that some still consider the short term outlook, demanded by Wall Street, is a justifiable rationale for these mergers.

of course i think a merger is always good business. maybe smaller companys should think about it sounds like pfizers trying to play big brother and set market prices> watch your back !!!and im glad they took it out on the little people thats real nice too bullies cut jobs ! karma thats what needs to happen!!!!

IG Pfarben is at it again. Too big to live, too dumb to die. Hopefully the third time is a charm and mighty Casey strikes out while oafishly swinging for the Wall Street fence. Projections for the deal to wrap around the end of the year leave just enough time for the financing to go kaput and deep six this Frankenstein. One has to wonder: did Pfizer go public with this deal in an attempt to to wag the dog? I for one am calling bull given this bearish market.

The only thing Pfizer is after is a piece of Wyeth's pension fund. In the end why else would they pay a premium for Wyeth's pipeline? To wipe out arout 7 to 8 billion of Wyeth's pension by firing 20,000 of Wyeth's employees. Thats the real payday. And lets do it with tarp funds. That will stimulate the economy. Takeovers are always about the fat pension fund.

I am a Wyeth Brazil Employer and all here are afraid with this merge, a lot of employes are finding a new job, because the merge will fire a lot of wyeth employes...

I am a wyeth employer too, and this merge take scare all of us... I'm not finding a new job, but I'm still waiting to be fired...

Whay are you waiting to be fired in this economy? Waiting is not a good idea?

Normally, waiting to be fired instead of actively searching is not a good idea. But in this economy and in this industry, waiting is the least bad option out of a lot of bad options. There are simply no jobs to be had right now, or for the rest of the year, because everyone is laying off massively, so searching is a stressful waste of time, especially if you're in R&D. At least waiting affords you the opportunity to spend quality time with your family and friends, recover from the disillusionment with an industry that has lost its way and then, in 3-6 months, you may be sufficiently recovered to think clearly about what to do with your life, which may well involve doing something good for humanity, not working in the pharmaceutical industry.

what will happen to the person holding wyeth stock?
will they be paid $50.19/share in a certified check or will they automatically aquire pfizer stock in the amount that is held w/ wyeth?

My three decades of time in allow me to get access and selling time in medical offices. A new "rookie" is not going to be able to do this and therefore not impact the MD's prescribing habits. Us "old timers" can add value and demand to Pfizer products
much better than a "new guy". Are those uf ous over 50 safe?

It's not a merger it's an acquisition

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