OT "5 Reasons Pfizer Shouldn't Buy Wyeth" | Arthritis Information

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http://seekingalpha.com/article/116358-5-reasons-pfizer-shouldn-t-buy-wyeth

Reasons to buy Wyeth (WYE)

  1. Misery loves company.

Reasons not to buy Wyeth

  1. Doesn’t come close to solving Pfizer’s (PFE) near term need for late-stage pipeline drugs
  2. Major mergers in pharma almost always destroy shareholder value (Pisano, 2007).
  3. Fails to address lack of internal R&D productivity (i.e., not a “disease modifying” business move but rather, a superficial band-aid).
  4. Opportunity cost is too high; Pfizer could buy 10 innovative companies for the cost of 1 Wyeth (e.g., Shire, BioMarin, OSI, Allergan, Forest…) or, move into generics.
  5. Wyeth’s marketed / late-stage pipeline has issues: Protonix and Effexor lose patent protection by 2011, bifeprunox and Pristiq have been plagued by issues / slow uptake and will probably never reach the combined B in projected sales.

I would be astonished if this deal materialized.


Look at number three.  I wonder which products are considered the 'superficial band-aids'?




Suzanne2009-01-26 09:00:06http://money.cnn.com/2009/01/26/news/companies/pfizer_wyeth/index.htm?postversion=2009012610
 
Edited to add..........
 
http://www.mlive.com/business/west-michigan/index.ssf/2009/01/pfizerwyeth_merger_to_mean_job.html
Lynn492009-01-26 09:04:08The market doesn't like it, either so far:
http://finance.yahoo.com/q?s=PFE
I think #3 was simply a play on words.  The merger is simply putting a band aid on Pfizer's business issues as opposed to modifying/improving them [QUOTE=buckeye]I think #3 was simply a play on words.  The merger is simply putting a band aid on Pfizer's business issues as opposed to modifying/improving them[/QUOTE]

I like that better!

I'm seeing jokes about the new name:  Wy-Pfi......Wyzer.

Last week all I saw was Pfired.
From Peter Rost:

http://peterrost.blogspot.com/2009/01/reason-pfizer-is-pushing-like-crazy-to.html

"But what is important to Pfizer CEO Jeff Kindler today is not the drugs his company may launch ten or fifteen years from now. His interest is survival and increasing the value of his stock options. That's the reason he does the deal. It is short term, but so is most of business.

And, very few of those scientists have come up with great new drugs. Most big Pfizer drugs have been bought or inlicensed, so Jeff probably couldn't care less if he has to cut scientists. After all he just dumped 800 scientists over at Pfizer."
I heard the Lipitor patent is expiring so Phizer needs some new drugs to replace it.
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