Pfizer and Wyeth have reached an agreement in which Pfizer will acquire Wyeth for $US50.19 per share - a blockbuster deal that values Wyeth at $US68 billion and creates the world's largest pharmaceutical company, with initial sales totaling $US71.13 billion.
The deal also combines Pfizer Animal Health and Wyeth's Ft. Dodge Animal Health business, creating the world's largest animal health company, with initial sales totaling $US3.9b, based on both companies' 2008 financial results that were also reported this morning.
Feedstuffs sources said the combination of the two animal health businesses will be "a great fit" and gave the merger "two thumbs up".
Both businesses have strong portfolios in livestock and companion animal products, sources said, although US authorities will probably require Pfizer to divest some canine, feline and cattle biologicals and some mastitis products to affect the merger.
Both businesses also have more sales internationally and should be able to tap into each other's networks to become a powerhouse in the global markets and to strengthen their domestic presence, sources said.
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