The world’s largest pharmaceutical giant just got even bigger. Friday was a very exciting day for Pfizer as the company closed its $68 billion deal with Wyeth, the biggest acquisition year-to-date.
This is Pfizer’s third mega-deal in the past ten years after Warner in 2000 and Pharmacia in 2003.
Pfizer Chief Executive Jeff Kindler joined Maria Bartiromo for an exclusive interview.
It’s an important day for patients and other customers around the world.
Kindler said, “Pfizer is in a strong position to provide medical and health care solutions to patients, from everything from neonatal vitamins to infant formula to vaccines, all the way to Alzheimer's treatments.” Pfizer expects to deliver strong, stable and consistent earnings and top-buying growth into the future.
So why another deal?
Kindler said, “This deal is about transforming our company into a more diversified business, and to providing real focus and accountability across those businesses.” Pfizer has been planning this deal for nine months now.
Research & Development
As for R&D, Kindler said, “We're going to be announcing our decisions around our R&D centers around the world in about 30 to 60 days from today, which is dramatically faster than we've done in prior deals, because we've learned in integration, speed and decisiveness is very important.”
Dividend Cut
Some were disappointed that Pfizer had to cut the dividend in order to finance the Wyeth deal. Will the company up its dividend anytime soon? No comment now, but Pfizer will have more to say about dividends in December.
Kindler said, “A lot of opportunities to deploy capital on behalf of the company, whether it be dividends, buybacks, investing in the business and in growth opportunities. We'll be deploying our capital with great regard for the future of our company, as well as the importance of providing a good return for our shareholders.”
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