Pfizer Loads Its Shopping Cart

Pharma titan Pfizer's purchase of King Pharmaceuticals,which was announced October 12,will augment its existing product lines in Primary Care,Established Products and Animal Health.The 3.6 billion dollar cash transaction brings new formulations of pain treatments that discourage misuse and abuse;the EpiPen auto-injection device;and a number of animal feed additives,into Pfizer's diversified businesses.
Pfizer CEO Jeff Kindler said they are highly impressed by King's innovative products and technology in the pain relief area.U.S. physicians wrote about 320 million prescriptions for painkillers in 2009.
Pfizer will also acquire King's promising new compounds in various stages of development.Pfizer already markets its own Celebrex and Lyrica painkilllers,and King will add Avinza,the Flector Patch and Embeda to the painkiller portfolio.
The deal is expected to close in late 2010 or early 2011,pending regulatory approval.
At the end of 2011,Pfizer's blockbuster drug Lipitor will go off-patent,resulting in a big loss of revenue.Pfizer is shopping for new income streams to help offset the loss of most of the billions Lipitor earns annually.In September,Pfizer announced its purchase of FoldRx Pharmaceuticals,a biotech firm specializing in neurodegenerative diseases.Last year,Pfizer bought Wyeth Pharmaceuticals for 68 billion dollars.
Pfizer(PFE)

Focus on Pharma:Inside the Pfizer-Wyeth Deal

Pfizer,the largest U.S. drugmaker,is acquiring rival Wyeth.Pfizer CEO Jeff Kindler says they've spent the last few years really strengthening Pfizer,and now they're in the position to do a really transformative transaction.It is to be financed through a combination of cash,debt and stock.This deal meaningfully addresses challenges like the patent expiration of Pfizer's blockbuster cholesterol drug Lipitor.The deal is for 68 billion dollars in cash and stock.Mr.Kindler believes Wyeth is a great fit for Pfizer.