Pfizer's Acquisition of Wyeth

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR342
Case Length : 19 Pages
Period : 2008-09
Pub Date : 2009
Teaching Note :Not Available
Organization : Pfizer Incorporated, Wyeth
Industry : Pharmaceuticals
Countries : US

To download Pfizer's Acquisition of Wyeth case study (Case Code: BSTR342) click on the button below, and select the case from the list of available cases:

Price:

For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

» Business Strategy Case Studies
» Case Studies Collection
» Business Strategy Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Area Specific Case Studies
» Industry Wise Case Studies
» Company Wise Case Studies

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

<< Previous

Excerpts Contd...

The Synergies

Pfizer's management was optimistic about the expected synergies as a result of the Wyeth deal (Refer to Table II for Pfizer's Expected Synergies from Merger with Wyeth). Wyeth had ventured into biotech very early - in the early 1990s - compared to its big rival pharma companies. The traditional drugs developed using chemicals contained small molecules and were easy for generic drug manufacturers to replicate once the patents for those drugs expired...

The Challenges

Industry experts pointed out that Wyeth had lost patents for many of its blockbuster drugs by the time Pfizer announced the merger deal.

The patent of its top drug by sales, Effexor, which had brought sales of US$ 3.8 billion in 2008, would expire in 2010 (Refer to Table IV for sales of Wyeth's top selling drugs in 2008). Most of Wyeth's blockbuster drugs were also to go off patent by 2012. Moreover, the company also had pipeline problems as it had no ready to market drugs in the pipeline...

Exhibits

Exhibit I (A): Income Statement of Pfizer (2003-08)
Exhibit I (B): Balance Sheet of Pfizer (2003-08)
Exhibit I (C): Valuation Ratios of Pfizer (2003-08)
Exhibit II (A): Income Statement of Wyeth (2003-08)
Exhibit II (B): Balance Sheet of Wyeth (2003-08)
Exhibit II (C): Valuation Ratios of Wyeth (2003-08)
Exhibit III: Pfizer's Stock Price Chart (January 1982 - May 2009)
Exhibit IV: Wyeth's Stock Price Chart (January 1982 - May 2009)

Case Studies in Business Strategy Volume VI

Case Study Volumes Collection

Business Strategy
Workbooks Collection