This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7850680.stm

The article has changed 11 times. There is an RSS feed of changes available.

Version 0 Version 1
Pfizer 'to buy Wyeth for $68bn' Pfizer acquires Wyeth for $68bn
(about 2 hours later)
US drugmaker Pfizer is close to a $68bn (£50bn) acquisition of rival Wyeth, and the deal may be announced within hours, US media reports say. US drugmaker Pfizer it to buy rival Wyeth in a deal worth $68bn (£50bn), the two companies have announced.
The two companies have not commented on the possible deal. "The merger will be financed through a combination of cash, debt and shares," the companies said.
The merger would allow Pfizer to protect itself from a drop in revenues when its popular drug Lipitor and other products lose patent protection. The merger will allow Pfizer to protect itself from a drop in revenues when its popular drug Lipitor and other products lose patent protection.
It would also help Pfizer diversify its product portfolio, thanks to Wyeth's presence in biotech drugs and vaccines. It will also help Pfizer diversify its product portfolio, thanks to Wyeth's presence in biotech drugs and vaccines.
If the deal goes ahead, it will be the largest merger in the pharmaceutical industry since Pfizer bought Warner-Lambert for $93.4bn in 2000, the Wall Street Journal reported. It will be the largest merger in the pharmaceutical industry since Pfizer bought Warner-Lambert for $93.4bn in 2000, according to the Wall Street Journal.
Three years later, it also bought Pharmacia for $60bn. Three years later, Pfizer also bought Pharmacia for $60bn.
It was also reported on Monday that Wyeth had withdrawn from talks to acquire Dutch biotechnology firm Crucell, further fuelling speculations about the inevitable merger between Wyeth and Pfizer. Earlier on Monday, Wyeth withdrew from talks to acquire Dutch biotechnology firm Crucell.
Diversification and cost-cuttingDiversification and cost-cutting
This sector must consolidate now, and Pfizer is the poster child David Moskowitz, Caris & CoThis sector must consolidate now, and Pfizer is the poster child David Moskowitz, Caris & Co
Pfizer makes drugs including cholesterol treatment Lipitor, one of the best-selling drugs in the world, and Viagra.Pfizer makes drugs including cholesterol treatment Lipitor, one of the best-selling drugs in the world, and Viagra.
From 2011, the firm is expected to lose billions of dollars in sales to cheaper rival generics of Lipitor.From 2011, the firm is expected to lose billions of dollars in sales to cheaper rival generics of Lipitor.
Wyeth faces the same problem next year, as it will lose patent protection on its best-selling drug, antidepressant Effexor XR.Wyeth faces the same problem next year, as it will lose patent protection on its best-selling drug, antidepressant Effexor XR.
Wyeth also makes the popular Prevnar vaccine against childhood infections and rheumatoid arthritis treatment Enbrel.Wyeth also makes the popular Prevnar vaccine against childhood infections and rheumatoid arthritis treatment Enbrel.
The deal would also allow the two companies to cut cost by cutting jobs in overlapping areas. The deal will also allow the two companies to cut cost by cutting jobs in overlapping areas.
"Consolidation is a necessary evil in Big Pharma. This sector must consolidate now, and Pfizer is the poster child," said pharmaceutical analyst David Moskowitz at Caris & Co. "Consolidation is a necessary evil in Big Pharma. This sector must consolidate now, and Pfizer is the poster child," said pharmaceutical analyst David Moskowitz at Caris & Co, before the announcement.