CNN/Money  
graphic
News > Companies
graphic
It's official: Pfizer buys Pharmacia
Nine months after announcement, maker of Lipitor, Viagra snags Rogaine, Celebrex, Xanax, Nicorette.
April 16, 2003: 2:52 PM EDT

NEW YORK (CNN/Money) - Pfizer said Wednesday that it officially bought Pharmacia, creating a drug company with $46 billion in annual sales and sought-after treatments for impotence, high-cholesterol, arthritis, glaucoma and depression.

The closing of the $60 deal solidifies Pfizer's lead as the No. 1 drug maker, capping a growth-by-acquisition run for Pfizer that began three years ago with its purchase of Warner-Lambert.

The new Pfizer (PFE: Research, Estimates) isn't just the largest drug company by sales. Its $256 billion market value makes it No. 3 behind only General Electric and Microsoft. At $7 billion, its research budget also tops all rivals.

But Pfizer stock has made little progress since the deal was announced last July as investors question whether a company this big can keep growing.

The merged company will hold about 11 percent of the world's market for prescription drugs, behind Britain's GlaxoSmithKline Plc, which has a 7 percent share.

Purchased in 2000, Warner Lambert offered Lipitor, the cholesterol drug that brought Pfizer an industry record $7.9 billion in sales last years.

Pharmacia brings Rogaine for hair loss and Nicorette, the gum designed to wean smokers from cigarettes. It has a glaucoma treatment, Xalatan, an anxiety treatment, Xanax, and the leading overactive bladder treatment, Detrol.

Pharmacia fills a void of Pfizer's with Camptosar, a treatment for colorectal cancer. The acquisition will also give Pfizer control over arthritis drug Celebrex, which the companies have sold jointly since 1998. It also gives Pfizer Eplerenone, a heart disease treatment.

"On any given day, we estimate that nearly 40 million people around the world are treated with a Pfizer medicine," Pfizer's Chief Executive Officer Hank McKinnell said in statement.

Fred Hassan, Pharmacia CEO, has said he will not be joining Pfizer.

Pfizer's is the biggest deal to close since Nov. 18, 2002, when Comcast competed the purchase of AT&T's broad band unit for $72 billion, according to Thomson Financial.

The closing of the deal, announced last July, was pushed back several times as Pfizer sold a series of treatments to satisfy anti-trust regulators on both sides of the Atlantic.

Click here for drug stocks

New York-based Pfizer makes Zoloft, to treat depression, and the erectile dysfunction drug Viagra, the heart drug Norvasc, and over-the-counter remedies including Rolaids, Benadryl, Listerine and Sudafed.

Pharmacia shareholders get 1.4 Pfizer shares for each Pharmacia share they own. Pfizer stock fell 53 cents to $31.68 Wednesday afternoon.

Efficiencies from the deal, Pfizer said, will save $2.5 billion in 2005.

The closing of the deal brings an end to Pharmacia, which started as a Sweden-based company and merged with U.S. drugmaker Upjohn in 1995 to become Pharmacia & Upjohn. It moved its headquarters first to England and then to Peapack, New Jersey in 1998.  Top of page


-- Reuters contributed to this report




  More on NEWS
Last-minute Christmas shopping guide
Springfield, MO, is the capital of cheap gas
A defiant Sony scrambles to find a way out for 'The Interview'
  TODAY'S TOP STORIES
Republicans to theaters: Don't be 'bullied'
Defiant Sony scrambles to find a way out
Sony exec: Studio did not 'cave' to hackers




graphic graphic

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.