Pfizer to Purchase Amgen 2/2012

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Anonymous

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Don't think so?
Pfizer loss of Lipitor patent 12 billion a year plus loss of Enbrel co-promote money equaling loss of 13 billion a year. See's that it must take action to replace loss in revenue and views Amgen as the perfect, PERFECT opportunity now with Enbrel news.
Pfizer learns of (or had part in) new Enbrel patent extension equaling close to 60 billion dollars in additional Enbrel money. Just one product. Over the next 17 years.
Pfizer quickly to divest or sell off new RA drug in favor of taking proven product like Enbrel with massive guaranteed revenue stream.
Home office will talk good game about how they hate Pfizer.
Board of directors and all senior management will push like hell to get deal done and ride off into sunset with millions.
 






12 billion loss for cholesterol drug? really? they loose 1 billion from us I know on loss of enbrel sales partnership. Ok now I get it. Wasn't sure where you were getting 13 billion.

That would suck
 




































Why buy something today that will be cheaper tomorrow?
Plus, any company will let Amgen clean up its own backyard. However, if Amgen continues the course of selling debt to make EPS, then they may become unattractive as a purchase target.
 






Interesting. I have been wondering about this scenario myself. Doesn't matter how much you hate someone or something when you have a golden parachute. Millions of dollars for VP's etc can change feelings fast. Pfizer certainly has the resources.

No matter what, come spring there will lots of changes. With or without Pfizer
 






This would be one of the smartest things Pfizer could every at this point in time. It would be a BLOCKBUSTER, and a long shot....but it would propel Pfizer to 10-15 years of large revenue with many NEW and EXCITING drugs to market.
 


















saw speculation about the same thing on financial blog the other day. Pfizer has to replace revenue and Amgen is good fit. Pfizer can re-launch Prolia with massive primary care sales force and Enbrel revenue with patent extension is huge for them. Also, gets them out of just phrma and into biotech which they know is future of med
 




































In this economic climate.....having any of you financial wizards bothered to inspect the lending environment, I'll save you the time THERE IS NO LENDING happening!
Amgen has a market cap of $51b, roughly the size of Pfizer's last takeover when it bought Wyeth for $68b. Major differences there were; Pfizer bought Wyeth for it's vaccine business and a pipeline of potential Alzheimer's molecules...not much real cash flow...compare that to Amgen...where the balance sheet on 12/2010 stated a cash and cash equivalents of around $18b. ..and products actually producing real free cash flow with an EBITA of almost $6b, which Wyeth didn't have.
What I am getting at is Pfizer will not buy Amgen for a paltry $68b like they paid for Wyeth but will have to pay significantly more in an economic climate where borrowing is just not happening. Pfizer does have around $27b of cash and cash equivalents, but that means they would have to borrow (through loans, or issuing additional stock) in excess of or close to $50-60b!!

Pfizer is nothing more than a consolidator of companies since their cholesterol drug failed in 2007 torpedoing their R&D department after spending $6b!! They are a single FDA investigation away from being disbanded as a company due to their repeated marketing violations, latest being $2.3b settlement for illegal marketing of Bextra...Pfizer was once a powerful force to recon with but now resembles a cat sliding down the blackboard into oblivion.

If it did occur, if you think Amgen is bad now (which I do not and yes I work here) you have seen absolutely nothing yet. The day the announcement is made immediately begin looking for gainful employment elsewhere...you will have some time probably between 8-14 months but back to my opening line....in this economic climate......

we'll see
 






There is no way in hell anyone would be dumb enough to buy Amgen. KS has saddled the company with so much debt, no company could handle it. Also, Amgen makes $0.18 per dollar sale of Enbrel. Amgen would need to sell 80 billion dollars worth of Enbrel to just break even on that purchase. That will NEVER happen, just like Pfizer will NEVER buy Amgen.
 






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