Pfizer agrees to buy Wyeth for $68 billion

[January 26, 2009]  NEW YORK (AP) -- Pharmaceutical giant Pfizer Inc. is buying rival drug maker Wyeth in a $68 billion cash-and-stock deal that could reshape the drug development industry.

Pfizer also says its net income for the fourth quarter dropped 90% from a year ago, hurt by a charge to resolve investigations into off-label promotional practices. It also plans to cut its work force by about 10 percent, and reduce the number of manufacturing sites.

New York-based Pfizer says it will pay $50.19 per share under the deal with Wyeth, valuing Madison, N.J.-based Wyeth at a 14.7 percent premium to the company's closing price of $43.74 Friday. Both companies' boards of directors approved the deal.

Pfizer says the deal is expected to add to the company's fourth-quarter adjusted profit. It expects to close the deal during the third or fourth quarter.

[Associated Press]

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.