Pfizer Acquires Wyeth for $68 Billion
Pfizer acquired Wyeth for $68 billion, a merge which is expected to boost the revenue to these two pharmaceutical giants. Meanwhile, some experts said that it will not solve Pfizer’s main problem as its famous drugs have reached its patent expiration which allows other companies to manufacture the same medicines.
Pfizer, the world’s leading pharmaceutical company, has acquired Wyeth on Monday for $68 billion in an attempt to boost its market revenue.
Economic experts said that with the ongoing recession, mergers will likely to happen especially from those companies which are greatly hit by the global financial crisis.
With low consumer demand for virtually all goods and services in the market, even big companies are suffering from slumping sales and low demands, forcing executives to resort to buyouts. And while weakened companies are merging with stronger ones, the latter are given opportunities to acquire rivals at a discounted price.
Meanwhile, some experts remain pessimistic over the merger of the two pharmaceutical giants, saying that Pfizer’s main problem which is the patent expiration of its famous drugs including Zoloft and Norvasc will not be resolved with this move. And in addition to this problem, the company is now also facing imminent lose of revenue as its famous drug Lipitor, which accounts for more than 25 percent of the revenue, will reach its patent expiration next year.
Despite banks and lenders’ apprehension to finance mergers and buyouts, Pfizer has acquired more than $22 billion to finance Wyeth buyout.
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