CHASAM

The Obama Health Plan's Impact on Pfizer: Final Nail in the Coffin or New Beginning?

Your arguments may be "True Blue", however from what I have read it appears that this merger does not have significant problems in the area of anti-trust from the Justice Department. Check several recent articles in "Seeking Alpha" by "M&A Researcher" that indicate smooth sailing. With a handle like this, I would have to believe that they have a pretty good grasp on the M&A business.
Hopefully, I am not dreaming, however it would appear that PFE has a more positive outlook on the Animal Health sector than you. I am treading lightly here as I noticed that your comment was published at 04:47 AM. You MUST be in the farm business.





On Mar 04 04:47 AM Blue Cod wrote:

> CHASAM: "It also makes the PFE/WYE combination the undisputed leader
> in Animal Health"...
>
> Some pertinent remarks to consider:
>
> Well, yes, such an incongruous wad of PFE/WYE animal health business
> would theoretically create the big kahuna of animal health companies
> but the big elephant in this room is yet to be heard from yet...The
> FTC and monopolies commissions in key animal health markets.
>
> The Pfizer and Wyeth animal health entities are far from complementary.
> Indeed, if anyone is familiar with the animal health businesses of
> these two companies, it is difficult to discover any positive synergies.
> They are direct and major competitors across several product ranges
> and in their global distribution networks. If there is doubt about
> this, consider that US farmer and rancher groups are already gearing
> up to fight the merger as anti-competitive.
>
> Anti-trust authorities around the world will not let Pfizer and Wyeth
> have a "pass" on the combination of the Pfizer and Fort Dodge Animal
> Health businesses. There are only two possibilities: 1) A significant
> spin-off of very large chunks of the business (e.g. veterinary vaccines
> where there is a considerable overlap) or 2) completely divesting
> of Fort Dodge Animal health as a separate entity.
>
> Many animal health competitors are sitting in the wings like hungry
> vultures to pick up the profitable pieces that could be spun off
> from a potential deal. But Pfizer will certainly not be keen to set
> up any new competitors with any of the juicy remnants. That remains
> the crux of this deal.
>
> Let's not dream here. The animal health industry is in a long period
> of consolidation with little innovation creating major organic growth
> opportunities. There are few new blockbuster products on the horizon
> for either Pfizer or Wyeth in the animal health business.
>
> This deal will only result in a serious decline in revenues caused
> by an extensive reconciliation of competing product lines, major
> layoffs, and the loss of expertise, research and manufacturing facilities
> that carry GMP approvals for critical overseas product approvals.
>
>
> Relative to size and strategic desire of the PFE/WYE human health
> deal, the animal health business has limited added value. Given the
> anti-trust hurdles ahead, it may be much more trouble than its worth.
> Look for 1 + 1 equaling something substantially less than two. <br/>
>
> In the meantime, take the cheer leading and hype of financial analysts
> pushing this animal health deal with a grain of salt and a healthy
> dose of skepticism. There is still a lot of water to flow under this
> bridge yet.
>
>