OT "5 Reasons Pfizer Shouldn't Buy Wyeth" | Arthritis Information
http://seekingalpha.com/article/116358-5-reasons-pfizer-shouldn-t-buy-wyeth
Reasons to buy Wyeth (WYE)
- Misery loves company.
Reasons not to buy Wyeth
- Doesn’t come close to solving Pfizer’s (PFE) near term need for late-stage pipeline drugs
- Major mergers in pharma almost always destroy shareholder value (Pisano, 2007).
- Fails
to address lack of internal R&D productivity (i.e., not a “disease
modifying” business move but rather, a superficial band-aid).
- 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.
- 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..........
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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