The speculation that started last year and then reappeared last week surrounding a possible major acquisition by Pfizer has come to a close. This morning Pfizer announced that it plans to acquire Wyeth for $68 billion. There were several reasons why Pfizer would look to make an acquisition such as this. Two of these include Pfizerâ€™s need to compensate for the impending patent loss of Lipitor, the top pharmaceutical product on the market, along with their previously noted desire to push forward into vaccines & biologics.
Is this a good move for Pfizer? We believe that it is. The â€śnewâ€ť Pfizer will gain access to several blockbusters, such as Enbrel & Prevnar, along with a very promising pipeline. Wyethâ€™s diverse pipeline includes strong potential products in Alzheimerâ€™s disease and a â€śnext generationâ€ť pneumococcal conjugate vaccine. Pfizer will also gain access to Wyethâ€™s antidepressant blockbuster, Effexor XR, which will lose patent protection next year.
In addition, Pfizer will now be getting back into the consumer market space through Wyethâ€™s strong over-the-counter (OTC) franchise. This is an OTC portfolio that includes many very well known products such as Advil, Dimetapp, and Centrum. As noted in the CBR Pharma Insights commentary, â€ś2009 Pharmaceutical Outlook Part 1 â€“ Diversification vs. Developmentâ€ť, acquiring companies with a strong OTC portfolio is one way that they can â€śbuffer the losses they have been suffering due to mature and expired patents.â€ť In this instance, Pfizer appears to both diversify and strengthen development, by acquiring Wyeth.
Overall, this acquisition gives Pfizer a strong product portfolio, a promising pipeline, and very powerful biologics and vaccine franchises. Since it did not appear that Pfizer had an in-house â€śreplacementâ€ť for its top blockbuster product, Lipitor, this was a predictable direction many thought they would go. As such, Pfizer has moved forward into 2009 with a great deal of focus and sense of purpose as it looks to keep its standing as the top pharmaceutical company in the world for years to come.
Last updated on: 27/08/2010 11:40:18