Company Analysis - Pfizer
An agreeable acquisition
The acquisition of PowderMed will increase the number of biotechnology products in Pfizer's pipeline by 64% and most importantly add recombinant vaccines..The acquisition of PowderMed will increase the number of biotechnology products in Pfizer's pipeline by 64% and most importantly add recombinant vaccines partnered with the PMED technology to its portfolio. Together with an increased number of anti-infective candidates (Graph 2), the combined pipelines of PowderMed and Pfizer appear a golden opportunity to drive Pfizer's expansion.
The agreement is expected to close in the fourth quarter of 2006 and is subject to the customary closing conditions. At present, the strategy post-acquisition has not yet been decided but it seems as if PowderMed is willing to be taken over; "I am delighted that the potential of the PowderMed technology to revolutionize the prevention and treatment of infectious diseases is now in the hands of the world's leading pharmaceutical company," Dr Clive Dix commented.
Does this acquisition signify the beginning of the end of small, specialist companies that are backed and supported by investors or is the prospect of being acquired by a sizeable pharmaceutical company the best way forward for both parties? Having a rich parent can be pleasant when they're willing to give money but eventually the money will either run out or they'll make you go it alone and whether you can withstand this depends on how strong your foundations are.
Jo Woodcock
Pharmaprojects Analyst
