Research in merger and aquisition : pfizer/vicuron deal

Pages: 59 (14549 mots) Publié le: 5 janvier 2011
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 players7
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’spress 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 thefact 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 companyoperates 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:Pfizer Inc has signed a definitive agreement to acquire Vicuron Pharmaceuticals Inc, for $1.9 billion. Pfizer would acquire all outstanding shares of Vicuron common stock for $29.10 per share in cash.
We found interesting to cite three sentences from Pfizer’s CEO and Vicuron’s CEO at that time:
* "By acquiring Vicuron, we can help bring two very important new medicines to patients around theworld," said Hank McKinnell, chairman and chief executive officer of Pfizer.
* "This transaction builds on Pfizer's extensive experience in anti-infectives and demonstrates our commitment to strengthen and broaden our pharmaceutical business through strategic product acquisitions," added McKinnell.
* "We believe this transaction is in the best interests of our shareholders and will enableVicuron's two near-term products to utilize Pfizer's capabilities in order to fully achieve their potential," said George F. Horner III, president and chief executive officer of Vicuron. "We are pleased to have a world leader in anti-infective medicines, with a long history of success in the area, introduce these product candidates into the market."
1. Description of the deal
Characteristicsof the offer
Relationship history - Pfizer already had an existing collaboration with Vicuron that had made significant advances in the discovery of potential next-generation oxazolidinones, the first new class of antibiotics in more than 30 years. These orally active antibiotics are said to have improved potency and a broader spectrum of activity than existing classes of compounds. SeveralVicuron compounds are currently being evaluated at Pfizer as potential clinical development candidates.
Pfizer has a rich history in anti-infective therapy and the addition of these two new products to the Pfizer portfolio underscores Pfizer's ongoing commitment to continuously deliver lifesaving products to the marketplace that can treat patients with serious infections. The addition of these...
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