Biopharma’s 6 Biggest Deals: Were They Worth It?

With Amgen set to drop $10.4 billion on Onyx, investors are wondering how effective super-sized biopharma acquisitions are

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Pfizer (Wyeth)

pfe Biopharmas 6 Biggest Deals: Were They Worth It?The acquisition that set off 2009’s wave of major acquisitions — and set the bar for the industry’s mega-deals — is Pfizer’s $68 billion acquisition of Wyeth Pharmaceuticals.

Like the merger of Merck and Schering-Plough, this union wasn’t built primarily on one drug, but rather, built on a large library of drugs that would help shore up Pfizer’s deteriorating IP. The patent cliff was just around the corner at the time, and garnering Schering-Plough’s vaccines, biologic, veterinary drugs and Alzheimer’s projects added depth as well as breadth to Pfizer’s portfolio.

Yes, this acquisition has paid off. It’s been tough to see it, but the cost-savings have mostly been realized, and Pfizer’s somewhat circumvented what could have been a patent cliff disaster.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.

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