SOUTH BRUNSWICK: Wyeth bought by Pfizer

by Davy James, Staff Writer
   Pharmaceutical company Pfizer announced last week that it had entered into an agreement to purchase rival pharmaceutical company Wyeth for $68 billion, a transaction that could have an impact on Wyeth’s South Brunswick-based research center.
   Pfizer recently announced it would be cutting more than 8,000 jobs by 2011, the same year the company stands to lose $13 billion per year in revenue when its cholesterol fighting drug Lipitor gets generic competition, according to the Associated Press.
   Representatives from Wyeth said it’s too soon to tell what kind of an impact the merger would have on the research center, a 354,500-square-foot facility on Ridge Road in Monmouth Junction. Approximately 450 employees work in the Monmouth Junction facility.
   ”At this point it’s only been a week since the transaction and no decisions have been made regarding jobs, facilities and any other aspects of the deal,” said Wyeth spokesman Doug Petkus. “It would be premature to speculate at this time.”
   A highlight of the transaction is the creation of a diversified company that will have product offerings in numerous growing therapeutic areas, a strong product pipeline, leading scientific and manufacturing capabilities, and a premier global footprint in health care, according to a Wyeth press release.
   ”The combination of Pfizer and Wyeth provides a powerful opportunity to transform our industry,” said Jeffrey B. Kindler, chief executive officer of Pfizer, in the release. “It will produce the world’s premier biopharmaceutical company whose distinct blend of diversification, flexibility and scale positions it for success in a dynamic global health care environment. The new company will be an industry leader in human, animal and consumer health.”
   Under the terms of the transaction, each outstanding share of Wyeth common stock will be converted into the right to receive $33 in cash and 0.985 of a share of Pfizer common stock, subject to the terms of the merger agreement.
   But the long-term ramifications the deal may have locally will not be known for several months, as no decisions regarding job cuts and the fate of the research center will be announced until the transaction is finalized.
   ”The transaction still needs to close and meet the legal and regulatory requirements,” Mr. Petkus said. “That should occur in the fourth quarter, which could be as early as July or as late as the end of October.”