Pharmaceutical behemoth Pfizer Inc. is planning to buy, well, that other pharmaceutical behemoth Wyeth for a reported $68 billion, the guardian reports.
The purchase will increase Pfizer’s revenue overnight, a much needed boost since the company has seen a 90 per cent drop in income because of the dwindling economy. The company’s 2009 forecasts are well below average, and the future didn’t look too promising before reports of the purchase.
Pfizer faces an estimated $13 billion drop in revenue starting November 2011, due to the inevitable release of generic‚ competitors‚ to the company’s cholesterol fighter, Lipitor.
America’s No. 1‚ drug maker‚ will cut 8,000 jobs‚ immediately, 10 per cent of its workforce. It is expected that Wyeth will cut nearly 12,000, bringing the job loss total to a whopping 20,000.
The guardian reports that with this purchase, Pfizer will now become a “one-stop shop” for vaccines and drugs for both people and animals.‚ The deal is expected to close in the late third or early fourth quarter.
The deal will increase research capabilities for Pfizer’s labs, however the job loss is pretty astounding. The 20,000 pharmaceutical industry jobs lost will be hard to replace for those out of work. That can’t help the economy.
The deal is cash and stock, one of the health care industry’s biggest ever. Hopefully it results in something new that will help the American people. ‚
What would be ironic is if whatever new drug is shipped out by Pfizer goes to someone who was laid off by them.‚
That would make me bitter for sure.