Pfizer (PFE) May Sell Off Assets To Gain Antitrust Clearance For The Wyeth (WYE) Deal
Pfizer Inc. (NYSE: PFE) may have to sell part of its animal-health business in order to gain antitrust clearance for its planned buyout of Wyeth (NYSE: WYE), according to a story in the WSJ today.
Pfizer's CFO Frank D'Amelio told investors at a Cowen & Co. conference that any potential asset sales would likely be immaterial, or less than 10% of Pfizer's combined animal-health revenue, which he estimated at roughly $4 billion.
Pfizer has a strong presence in companion and livestock animal-health products, while Wyeth, is strong in animal vaccines, D'Amelio said, "but we have overlap in those areas as well." He said talks with antitrust authorities are ongoing.
An analyst asked Mr. D'Amelio whether a combined Pfizer-Wyeth would be forced to divest itself of any on-the-market or experimental drugs for treating Alzheimer's disease, but the CFO said "it's too early to tell" and that the overlap in Alzheimer's assets wasn't on the "same plane" as animal health.
Pfizer agreed to acquire Wyeth in a cash-and-stock transaction valued at approximately $68 billion.
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