Research in Mergers & Acquisitions
Pfizer Inc & Vicuron Pharmaceuticals deal

Table of contents

1. Description of the deal 4 c. Characteristics of the offer 4
2. Background information 5 d. Pharmaceutical industry analysis 5 i. Overview of the industry 5 ii. Intensity of competitive forces 6 iii. Current trends and challenges 6 e. Overview of the two players 7
3. Deal classification 8 a. The Vicuron deal: a strategic merger aimed at providing Pfizer with a sustainable growth 8 b. Expected synergies 10 c. Further reflexions 12
4. Event study: key findings of the analysis 12
5. Premium analysis 14
6. Deal process analysis 14
7. CEO role in the deal process 16 a. Biography 16 b. McKinnel’s role in the deal process. 16 c. McKinnel’s press portrayal 17 d. Conclusion 17
8. Conclusion 17
9. Appendixes 17
10. Bibliography 53

Executive Summary

In 2005, the Vicuron acquisition auction, won by Pfizer, starkly revealed the fact that the biggest Big Pharmaceuticals had a striking advantage in their ability to access new products. Some analysts said that this acquisition reinforces a certain notion which puts forward the fact that biotechnology serves as the pharmaceutical industry's research and development arm. Many biotechnology firms are trading near annual lows, which make them ripe and attractive for a takeover.
Pfizer Inc. is the world's premier biopharmaceutical company engaged in the discovery, development, manufacture and marketing of prescription medicines for both humans and animals. The company operates in more than 150 countries. It is headquartered in New York City, New York and employed 81,800 people as of December 2008. VicuronPharmaceuticals Inc is a biopharmaceutical company focused on the development of anti-infectives for both hospital-based and community-acquired infections which is based in the Philadelphia suburb King of Prussia and employs about 200 workers.
On 20 June, 2005: