The overall market may like the return of the megadeal, with Pfizer buying Wyeth for $68 billion, but nobody seems to like the deal itself. Wyeth is trading well off the $68 billion price tag, and Pfizer is getting slammed, down 9% — even though everyone already knew the deal was coming.
Drug researcher and blogger Derek Lowe is negative on the deal:
The Pfizer/Wyeth deal is on, and I would really, really prefer to write about something else this morning. The main thing we can hope for is that the company has decided, just possibly, that its previous takeovers didn’t quite work out the way that they were supposed to on paper, and has resolved to run this one differently. The fact that Wyeth doesn’t have One Huge Drug (the way Warner-Lambert had Lipitor, or Pharmacia-Upjohn had Celebrex), gives me at least a little hope. But, as people were pointed out in the comments to Friday’s post, there’s no way that you can make this deal work without a lot of layoffs. Read the whole thing >