According to NJ.com:
The giant pharmaceutical company, wrestling with a dearth of new drugs and expecting a major revenue hit next year when its cholesterol-fighter Lipitor faces generic competition, attempted to strengthen its business by acquiring Wyeth, which will give it more than a single blockbuster drug to help ride out the coming storm.
The one-time rivals laid out plans yesterday for a $68 billion deal that will provide Pfizer with a range of products, including lucrative biological medicines such as the arthritis treatment Enbrel, vaccines and over-the-counter remedies like Advil and Robitussin. Industry analysts said by acquiring Wyeth, Pfizer stands to increase its revenue by 50 percent, at least in the short
term.
The companies — which will retain the Pfizer name once the deal is approved — would not discuss potential layoffs, but NJ.com
The acquisition of Morris County-based Wyeth, which appears to defy the credit crisis that has constrained corporate financing, will only heighten the wave of job losses occurring across the pharmaceutical industry.
Even before the acquisition was announced, Pfizer had disclosed plans to slash 10 percent of its global work force, including 800 researchers, by 2011. As part of the
transaction, Pfizer expects to reduce the global work force of the combined company by 15 percent, including the previously announced cuts. Analysts say the number of jobs lost could amount to 20,000 worldwide
Wyeth has two facilities in New Jersey, including one on Ridge Road in South Brunswick. There is no word how these facilities will be affected — but the smiles on the CEOs’ faces (above, during yesterday’s press conference) makes it clear that the companies’ employees should be very afraid.
Hank Kalet 