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| Pfizer, Wyeth close to deal: reports |
| AP / PTI / New York Jan 26, 2009, 11:47 IST |
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Drugmakers Pfizer and Wyeth are closing in on a deal worth $68 billion that could be announced before the markets open today, according to published reports.
The New York Times and Wall Street Journal reported on Sunday evening that Pfizer, the maker of Lipitor and Viagra, is working to finish financing for the acquisition.
The deal calls for Pfizer to pay USD 50.19 a share for the company, with about two-thirds of the price in cash and one-third in stock, the papers reported. It would include $25 billion in bank financing.
Sources at Pfizer could not be immediately reached for comment. A Wyeth spokesman said the company had no comment.
A deal would increase Pfizer's revenue by half and add strength in biotech drugs, vaccines and over-the-counter products, including the Advil and Robitussin brands.
A deal would help Pfizer cushion itself against a steep revenue decline expected over the next several years as Lipitor, the world's best-selling drug, and other major products lost patent protection.
The drugmaker is expected to lose billions of dollars in sales to cheaper generics.
Acquiring Wyeth would transform Pfizer from a pure pharmaceutical company into a broadly diversified health care giant, given Wyeth's huge presence in biotech drugs, vaccines including the blockbuster pneumococcal vaccine Prevnar, veterinary medicines and consumer health products.
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