With the Wyeth acquisition in 2009 for $68 billion USD, Pfizer is back into action in M&A , and set a new benchmark in the pharmaceutical industry and allows the company to retain and enhance its leadership of the market. Big-size acquisitions have shaped the company’s sales growth performance over the past decade, with the integration of Wyeth preceded by the purchases of Warner-Lambert (2000) and Pharmacia (2003).
Strategically, however, Pfizer has begun to undergo fundamental change. The loss of patent protection of Lipitor in many developed countries in 2011 already now has a painful impact on the company. This pressure also changed the underlying motive for acquiring Wyeth versus its previous large-scale acquisitions. While Warner-Lambert and Pharmacia were integral in shaping Pfizer’s industry-leading blockbuster growth strategy, Wyeth drives significant diversification at Pfizer as the industry-leading player seeks to navigate its way across a rapidly changing market landscape. Given the historical precedent set by Pfizer over the last
decade, it is worth considering that the company may enter into further large-scale M&A activity before 2015. Considered to have a too meager pipeline, the company will find it increasingly hard to expand via organic means.
Strategically, however, Pfizer has begun to undergo fundamental change. The loss of patent protection of Lipitor in many developed countries in 2011 already now has a painful impact on the company. This pressure also changed the underlying motive for acquiring Wyeth versus its previous large-scale acquisitions. While Warner-Lambert and Pharmacia were integral in shaping Pfizer’s industry-leading blockbuster growth strategy, Wyeth drives significant diversification at Pfizer as the industry-leading player seeks to navigate its way across a rapidly changing market landscape. Given the historical precedent set by Pfizer over the last
decade, it is worth considering that the company may enter into further large-scale M&A activity before 2015. Considered to have a too meager pipeline, the company will find it increasingly hard to expand via organic means.
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