Pfizer will book a charge of nearly USD 785 million after its Wyeth subsidiary reached a deal to resolve some litigation over the calculation of Medicaid rebates for its severe heartburn treatment Protonix.
The deal will resolve cases pending in federal court that centered on Wyeth's practices related to the rebates between 2001 and 2006, a few years before Pfizer acquired the drugmaker in 2009. Wyeth does not admit liability as part of the deal.
Pfizer says it is reissuing its fourth quarter and full-year results to reflect the charge, but adjusted results will not change.
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Pfizer Inc also paid USD 55 million a few years ago to resolve allegations that Wyeth promoted Protonix for uses that were not approved by the Food and Drug Administration. Pfizer shares edged up in morning trading.
Under the terms of the merger agreement, a subsidiary of
Pfizer will commence a cash tender offer to purchase all of the outstanding shares of Anacor common stock for USD 99.25 per share in cash.
The company said the closing of the tender offer is subject to customary closing conditions, including US antitrust clearance and the tender of a majority of the outstanding shares of Anacor common stock.
"The merger agreement contemplates that Pfizer will acquire any shares of Anacor that are not tendered into the offer through a second-step merger, which will be completed promptly following the closing of the tender offer," it said.
Pfizer expects to complete the acquisition in the third-quarter of 2016.
Pfizer has been looking at inorganic route of growth to enhance its position as the leading drugmaker in the world. In April this year, Pfizer had terminated its proposed USD 160 billion merger deal with Botox manufacturer Allergan following crackdown by the US government over tax avoidance deals.
Earlier in May 2014, Pfizer's USD 117 billion takeover offer for AstraZeneca was rejected by the British pharma major stating that it undervalued the company.
