Archive for June, 2009

Pharma Mega-Mergers: When you can’t innovate, merge

Monday, June 22nd, 2009

In April of 2009, Pfizer agreed to buyout Wyeth for $68 billion; Pfizer’s market cap at that time was just around $100 billion. The following month Merck trumped the Pfizer deal with a $41 billion merger with Schering-Plough. What was Merck’s market cap at the time? – Roughly around $50 billion. Not to be outdone, Roche rounded-up the mega-mergers of 2009 (so far) with a $46.8 billion deal to acquire Genentech. However, it must be mentioned that Roche already had a majority stake in Genentech (55.8%), so we’re really talking about $46.8 billion for the remaining 44.2 % of Genentech it did not already own. (more…)