Pfizer Wyeth Merger - Collective Analysis of What Comes Next in Pharma Biotech - Competitive Intelligence2024-03-29T11:24:45Zhttps://competitiveintelligence.ning.com/forum/topics/pfizer-wyeth-merger?commentId=2036441%3AComment%3A15339&feed=yes&xn_auth=noWell said Michael - bravo - t…tag:competitiveintelligence.ning.com,2009-01-30:2036441:Comment:155872009-01-30T04:13:55.758ZArik Johnsonhttps://competitiveintelligence.ning.com/profile/ArikJohnson
Well said Michael - bravo - that's precisely the sort of interpretation I was hoping for - I'm going to have to think that over a bit before crafting a suitable reply. ;-)<br />
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Arik
Well said Michael - bravo - that's precisely the sort of interpretation I was hoping for - I'm going to have to think that over a bit before crafting a suitable reply. ;-)<br />
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Arik Thanks, Allan. Good to meet y…tag:competitiveintelligence.ning.com,2009-01-30:2036441:Comment:155822009-01-30T01:17:32.309ZMichael Goodmanhttps://competitiveintelligence.ning.com/profile/MichaelGoodman
Thanks, Allan. Good to meet you.
Thanks, Allan. Good to meet you. Michael, it's great that you…tag:competitiveintelligence.ning.com,2009-01-30:2036441:Comment:155782009-01-30T00:33:37.205ZAlan S. Michaelshttps://competitiveintelligence.ning.com/profile/AlanSMichaels
Michael, it's great that you joined the discussion. If we ever form teams to have debates, I want to be on your team.
Michael, it's great that you joined the discussion. If we ever form teams to have debates, I want to be on your team. Arik, thanks for starting thi…tag:competitiveintelligence.ning.com,2009-01-29:2036441:Comment:155652009-01-29T20:32:35.788ZMichael Goodmanhttps://competitiveintelligence.ning.com/profile/MichaelGoodman
Arik, thanks for starting this provocative forum. Here’s my take on the 2 questions you posed at the outset:<br />
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What’s next from the perspective of this deal?<br />
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Pfizer will gladly cast off redundant GP products that Wyeth brings. This deal is not about scale or about growing their primary care business. Their interest is in Wyeth’s biotech franchise: Prevnar, Enbrel, Refacto, and the moon-shot Bapineuzumab. Wyeth’s biologic products will account for 67% ($9.6 billion) of its portfolio revenue in…
Arik, thanks for starting this provocative forum. Here’s my take on the 2 questions you posed at the outset:<br />
<br />
What’s next from the perspective of this deal?<br />
<br />
Pfizer will gladly cast off redundant GP products that Wyeth brings. This deal is not about scale or about growing their primary care business. Their interest is in Wyeth’s biotech franchise: Prevnar, Enbrel, Refacto, and the moon-shot Bapineuzumab. Wyeth’s biologic products will account for 67% ($9.6 billion) of its portfolio revenue in 2012E, and is growing at a healthy 13% CAGR over the 2007–2012E timeframe. Enbrel and Prevnar together will account for over $7 billion in 2012E, up from c. $5 billion in 2008. Pfizer, which has repeatedly stated over the past 2 years that biotech is a strategic priority, is on track to derive a meager 3% ($705 million) of portfolio revenue from biologics in 2012E, and its sole biotech product, Genotropin, will post a CAGR of -4% over the 2007–2012E forecast horizon. Wyeth’s got what Pfizer needs — not only biotech products and a commercial organization experienced in selling specialist medicines, but world-class protein manufacturing capacity as well, a precious asset in the race to build a biologics franchise.<br />
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What’s next from the perspective of players within and beyond the healthcare/life sciences sector?<br />
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This one’s tougher. I agree with previous posters that mega mergers are probably not the wave of the future. That said, look for Sanofi to make a major acquisition, probably not BMS unless it’s keen to double down on its Plavix and Avapro losses. It’s hard to imagine the French government being content with a 3rd rate national pharmaceutical company. I also think Roche will get its way with Genentech, if not this year then in 2010. Interestingly, we may see more mid-sized mergers that are focused on a particular strategic asset — therapeutic, geographic, or platform. Celgene’s acquisition of Pharmion, Takeda’s of Millennium, Eisai’s of MGI Pharma. All of those were cancer plays, and make sense given the acquirer’s situation. As for the big boys, as Stephen Paul, EVP Lilly Research Laboratories, suggested in a recent interview, the next transformation in the industry will likely be the evolution from FIPCo (fully integrated pharma company) to FIPNet (fully integrated pharma network). The next major transformative wave will probably be more about partnerships than acquisitions, more about focus and efficiency than scale. Like Lilly’s recent partnerships with Covance or with TPG-Axon and NovoQuest. I'm wondering how any of thes…tag:competitiveintelligence.ning.com,2009-01-27:2036441:Comment:153812009-01-27T16:30:25.577ZEric Garlandhttps://competitiveintelligence.ning.com/profile/EricGarland
I'm wondering how any of these behemoth mergers are addressing the major strategic issue of the industry - that private American healthcare expenditure is expected to double in the next six or so years, from two trillion to four trillion, as the Baby Boom generation need diabetes treatments, help with failed kidneys, new joints, and more. This is going to put price pressure on the industry unlike anything in its 100 year history.<br />
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These mergers appear to have nothing to do with strategy.
I'm wondering how any of these behemoth mergers are addressing the major strategic issue of the industry - that private American healthcare expenditure is expected to double in the next six or so years, from two trillion to four trillion, as the Baby Boom generation need diabetes treatments, help with failed kidneys, new joints, and more. This is going to put price pressure on the industry unlike anything in its 100 year history.<br />
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These mergers appear to have nothing to do with strategy. I understand the rationale fo…tag:competitiveintelligence.ning.com,2009-01-27:2036441:Comment:153772009-01-27T14:58:45.877ZArthur Weisshttps://competitiveintelligence.ning.com/profile/ArthurWeiss
I understand the rationale for such mega-mergers. However the more i see such giants, the less convinced i am in the wisdom of combining. There are still millions to be made in finding the cure for cancer, alzheimers, parkinsons and many of the other diseases afflicting an aging population - or lifestyle diseases such as diabetes and obesity. However this becomes a process of diminishing returns - as the science gets harder, competition more intensive and the profit requirements for…
I understand the rationale for such mega-mergers. However the more i see such giants, the less convinced i am in the wisdom of combining. There are still millions to be made in finding the cure for cancer, alzheimers, parkinsons and many of the other diseases afflicting an aging population - or lifestyle diseases such as diabetes and obesity. However this becomes a process of diminishing returns - as the science gets harder, competition more intensive and the profit requirements for block-buster drugs grow - just so that such companies justify their size.<br />
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In contrast, a smaller company is forced to focus on more niche areas - where the opportunities for new developments abound. Genetic diseases impacting 1000s of people instead of millions offer a route for such bio-tech discoveries. However they won't be made by the Pfizer-Wyeth's of this world as the profits would be too small to justify the R&D effort, unless they targeted 100s of such diseases. This won't happen as that's not the culture. So they focus on the "big-ones" and limit their options.<br />
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The saying "the bigger they are, the harder they fall" applies in most walks of life - including pharma-co mergers. Arik, thank you for this "col…tag:competitiveintelligence.ning.com,2009-01-27:2036441:Comment:153442009-01-27T01:33:14.542ZAlan S. Michaelshttps://competitiveintelligence.ning.com/profile/AlanSMichaels
Arik, thank you for this "collaboration experiment" because it's an opportunity for me to say to all, I love to collaborate, and my focus will usually start with a quick analyis, on eCompetitors.com, of the lines of business for the company or companies under discussion. Cheers, Alan<br />
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For this merger, if it does happen, some of the combined lines of business:<br />
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1 Pfizer AIDS Medication / HIV Drugs<br />
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2 Pfizer Allergy Dependence Medication / Drugs<br />
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3 Wyeth Allergy Medication & Allergy Sinus…
Arik, thank you for this "collaboration experiment" because it's an opportunity for me to say to all, I love to collaborate, and my focus will usually start with a quick analyis, on eCompetitors.com, of the lines of business for the company or companies under discussion. Cheers, Alan<br />
<br />
For this merger, if it does happen, some of the combined lines of business:<br />
<br />
<br />
1 Pfizer AIDS Medication / HIV Drugs<br />
<br />
2 Pfizer Allergy Dependence Medication / Drugs<br />
<br />
3 Wyeth Allergy Medication & Allergy Sinus Medication / Drugs<br />
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4 Pfizer Alzheimer Medication / Drugs<br />
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5 Pfizer Arthritis / Arthritis & Osteoarthritis Medication / Drugs<br />
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6 Wyeth Asthma & Bronchospasm Medication / Drugs<br />
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7 Wyeth Birth Control Pills Manufacturing<br />
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8 Pfizer Bladder Medication<br />
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9 Pfizer Cancer Drugs / Breast Cancer Drugs<br />
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10 Pfizer Cancer Drugs / Colon and Rectum Cancer Drugs<br />
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11 Wyeth Cat Drugs / Anesthesia Medication<br />
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12 Pfizer Cat Drugs / Ear Mites Medication<br />
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13 Pfizer Cat Drugs / Tapeworm Medication<br />
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14 Wyeth Cat Vaccine / Feline Vaccine Manufacturing<br />
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15 BOTH Cattle Drugs / Bovine Respiratory Disease<br />
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16 Wyeth Cattle Drugs / Hormonal Implants For Beef Cattle<br />
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17 Wyeth Cattle Drugs / Mastitis Medication<br />
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18 Wyeth Cattle Drugs / Parasite & Dewormer Medication<br />
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19 BOTH Cattle Vaccine Manufacturing<br />
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20 Pfizer Cholesterol / Triglyceride Management Medication / Drugs<br />
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21 Wyeth Cold Medication / Drugs<br />
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22 Pfizer Cold & Cough & Sinus Medication / Drugs<br />
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23 Wyeth Cold & Cough Medication / Drugs<br />
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24 Wyeth Cold & Sinus Medication / Drugs<br />
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25 Wyeth Confectionary / Cough Drops, Throat & Herb Drops Manufacturing<br />
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26 Pfizer Contraceptive High-Dose Progestin Injection Manufacturing<br />
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27 Wyeth Cough-Expectorant-Soar Throat-Antitussive Medication / Drugs<br />
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28 Wyeth Decongestant Medication & Congestant Medication / Drugs<br />
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29 Pfizer Depression Medication / Drugs<br />
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30 Pfizer Diabetes Medication / Drugs<br />
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31 Wyeth Diet Medication / Drugs<br />
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32 Wyeth Dog Drugs / Antibiotic Medication<br />
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33 Wyeth Dog Drugs / Pain & Inflammation Medication<br />
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34 Pfizer Dog Drugs / Tapeworm Medication<br />
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35 BOTH Dog Vaccine / Canine Vaccine Manufacturing<br />
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36 Pfizer Drugs and Druggists’ Sundries Merchant Wholesalers<br />
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37 Pfizer Epileptic Seizure & Neurological Treatment Medication / Drugs<br />
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38 Pfizer Erectile Dysfunction & Impotence Medication / Drugs<br />
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39 Pfizer Eye Glaucoma Medication / Drugs<br />
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40 Wyeth Fever Medication / Drugs<br />
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41 Wyeth Flu & Body Ache Medication / Drugs<br />
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42 Wyeth Gastrointestinal Constipation / Bulk-forming Laxative Manufacturing<br />
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43 Wyeth Gastrointestinal Constipation / Laxative & Constipation Medication / Drugs<br />
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44 Pfizer Growth Hormone Deficiency Medication / Drugs<br />
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45 Wyeth Heartburn Medication / Drugs<br />
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46 BOTH Hemorrhoid Medication / Drugs<br />
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47 Pfizer Horse Drugs / Anesthetic - Local Anesthesia Medication<br />
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48 BOTH Horse Drugs / Internal Parasites Medication<br />
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49 BOTH Horse Vaccine / Equine Vaccine Manufacturing<br />
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50 Wyeth Lip Balm & Lip Moisturizer Manufacturing<br />
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51 Pfizer Menstrual Cramps Medication / Drugs<br />
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52 Wyeth Migraine Medicine / Drugs<br />
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53 Wyeth Nose / Sinus Medication / Drugs<br />
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54 Wyeth Pain / Oral Pain Medication / Drugs<br />
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55 Pfizer Pain Analgesics / Major Pain Killer Medication / Drugs<br />
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56 Wyeth Poultry Vaccine Manufacturing<br />
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57 Pfizer Schizophrenia Medication / Drugs<br />
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58 Pfizer Sleeping / Sleep Aid Medication / Drugs<br />
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59 Pfizer Supplements / Dietary Supplements Manufacturing<br />
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60 Pfizer Swine Drugs / Antibiotic Medication<br />
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61 Pfizer Swine Drugs / Bacterial Enteritis Medication<br />
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62 BOTH Swine Vaccine Manufacturing<br />
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63 Pfizer Tobacco Dependence Medication / Drugs<br />
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64 Wyeth Transplant Prevent Rejection Medication / Drugs<br />
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65 Wyeth Vitamins & Minerals / Calcium & Calcium With Other Minerals Manufacturing<br />
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66 Pfizer Vitamins & Minerals / Multivitamins - Adult Multivitamin Manufacturing<br />
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67 Wyeth Vitamins & Minerals / Multivitamins - Children's Multivitamin Manufacturing<br />
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68 Wyeth Vitamins & Minerals / Vitamin C Manufacturing In my humble opinion we are w…tag:competitiveintelligence.ning.com,2009-01-26:2036441:Comment:153392009-01-26T21:55:15.685ZWayne Rosenkranshttps://competitiveintelligence.ning.com/profile/WayneRosenkrans
In my humble opinion we are witnessing the implosion of the pharma industry as we know it today. The environment has changed in such a way that none of the established business models are working in either the development or commercialization of drugs, yet the industries leaders for the most part insist on trying to pull the same old levers they always pulled and that always worked before - including merging. As the industry's crisis deepens we will witness ever more desperate attempts to…
In my humble opinion we are witnessing the implosion of the pharma industry as we know it today. The environment has changed in such a way that none of the established business models are working in either the development or commercialization of drugs, yet the industries leaders for the most part insist on trying to pull the same old levers they always pulled and that always worked before - including merging. As the industry's crisis deepens we will witness ever more desperate attempts to forestall the inevitable. Pfizer will swallow Wyeth (unless the Feds intervene which they might) only to find that they are in a worse situation 18 months from now because they didn't solve for the real problem - the need for new models for drug development, new models for drug commercialization, and new ways of working with the other sectors of healthcare. The bigger question is whether the healthcare system itself will collapse under the weight of ever increasing costs of care and ever decreasing quality of care in a nation wracked by financial instability. What exactly that collapse will look like is a very interesting question.<br />
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Did pharma's CI fail it? Again in my experience, no. The pharma culture became toxic to strategic thinking backed by evidence brought by intelligence. As a senior colleague of mine put it very well -- if you're going to circle the wagons, make sure the guns are pointed out.. To address some of the concer…tag:competitiveintelligence.ning.com,2009-01-26:2036441:Comment:153362009-01-26T21:41:11.119ZLisahttps://competitiveintelligence.ning.com/profile/LisaRegal
To address some of the concerns here and certainly those insightful comments of Martha Matteo, let's look at the technologies involved. Pfizer's pharma has been spending a lot of money on drug development but lacks the nano-know how to move into the next Gen of pharma-tech. Nanotechnology is where Wyeth comes in both in literal and figurative terms.<br />
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By acquiring the nano Wyeth, Pfizer becomes the one stop shop for drug delivery systems on a mircoscopic scale - certainly worth the cost of the…
To address some of the concerns here and certainly those insightful comments of Martha Matteo, let's look at the technologies involved. Pfizer's pharma has been spending a lot of money on drug development but lacks the nano-know how to move into the next Gen of pharma-tech. Nanotechnology is where Wyeth comes in both in literal and figurative terms.<br />
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By acquiring the nano Wyeth, Pfizer becomes the one stop shop for drug delivery systems on a mircoscopic scale - certainly worth the cost of the deal. I agree wholeheartedly, Marth…tag:competitiveintelligence.ning.com,2009-01-26:2036441:Comment:153292009-01-26T18:26:35.310ZSally Church, Ph.Dhttps://competitiveintelligence.ning.com/profile/SallyChurch
I agree wholeheartedly, Martha. Many Wyeth employees may either lose their jobs or choose not to join Pfizer. It's a bit Pharmacia redux, sadly.<br />
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If anyone is interested, I posted a <a href="http://www.pharmastrategyblog.com/2009/01/pfizer-and-wyeth-merger-whats-next-for-pharma-and-biotech.html">blog</a> on it earlier this morning.
I agree wholeheartedly, Martha. Many Wyeth employees may either lose their jobs or choose not to join Pfizer. It's a bit Pharmacia redux, sadly.<br />
<br />
If anyone is interested, I posted a <a href="http://www.pharmastrategyblog.com/2009/01/pfizer-and-wyeth-merger-whats-next-for-pharma-and-biotech.html">blog</a> on it earlier this morning.