PFE could had done a lot better by acquiring the state-of-the-art Biotech type drug company like AMGN or GENZ or GILD or a combination of 2 out of 3 paying a little more.
i don't have to agree with you all the time lipincot.wrong!globalization or aquiring others is not the best solution always.it's buying someone else's headaches like buying a used car from anybody;)i'm sure you've done that before:) like that greedy violet plant who wanted to grow higher and higher by the river banks;)
As long as you aqgree with me 90% of time ..its fine Avi..lol
Have never bought an used car since my Graduate study days at Ohio State University, and that was in the early 70's.
Sometimes it is necessary to acquire the company to get competitor's top line drug ..like PFE got Lipitor by acquiring Warner-Lambert(sp?). But buying WYE paying a huge sum in today's market was a wrong move IMHO. Still hope for the best in the end when all is finalized since I have got a ton of PFE shares around $17. C yea !!!
PFE hired a top M & A man in March 2008 to explore the takeover possibilities. It very well could be that the powers that be at GILD, GENZ, etc. were asking an arm and a leg to agree to a friendly takeover.
It would be absolutely wrong to just blithely assume that any or all of these companies could have been had with just a slight premium. Especially when stock prices were so depressed.
Besides, when analysts were bandiying about the possibility of acquiring companies like GILD and GENZ, the prevailing opinion seemed to be that they just wouldn't be enough to offset the big expirations of 2011 and 2012.
And it's true - even all the way out to 2013, Value Line sees only $9.0B in revenues for GILD and $7.3B for GENZ. Meanwhile, Value Line is expecting $27.0B in 2013 revenues - apparently with the help of Prevnar-13.
At least out to 2013, PFE is better off earings-wise with WYE - even if GILD and GENZ could have been taken out for modest premiums - and there is certainly no guarantee that they could.