The big drug industry news yesterday wasPfizer’s announcement that it will buy King Pharma for $3.6 billion, giving the pharma giant a stronger foothold in the painkiller market.
But even after adding King to the shopping cart already containing Wyeth — purchased last year for $68 billion — Pfizer’s not likely done with making deals.
So says our Dow Jones Newswires colleague Peter Loftus in his post on the WSJ’s The Source blog, arguing that the company will have to keep on the M&A hunt “to successfully navigate the next few years.” He writes:
So says our Dow Jones Newswires colleague Peter Loftus in his post on the WSJ’s The Source blog, arguing that the company will have to keep on the M&A hunt “to successfully navigate the next few years.” He writes:
The Wyeth deal diversified Pfizer and landed some gems including the Prevnar childhood vaccine. But it hasn’t stopped Pfizer from suffering setbacks in its expensive quest to bring new drugs to market. Repeated research failures have made it more difficult for Pfizer to replace billions of dollars in revenue that will be lost to generic competition in coming years, most notably when cheap copycat versions of Lipitor are expected to hit the U.S. market in November 2011. Investors now place virtually no value on Pfizer’s pipeline of experimental drugs, and instead look to cost savings and cash flow from existing products as sources of Pfizer’s strength in coming years.
Correction: An earlier version of this post incorrectly stated that Pfizer purchased Wyeth for $68 million.
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