7 Companies Owned by Pfizer

Pfizer Inc. (DFP) is a global biopharmaceutical company engaged in the discovery, development, manufacture and sale of medicines and vaccines. Its activity covers the following therapeutic areas: vaccines, oncology, internal medicine, hospital, inflammation and immunology, rare diseases.

Pfizer job net revenue attributable to common shareholders of $22 billion out of revenue $81.3 billion in 2021 fiscal year (FA)which ended on December 31, 2021. From the company market capitalization was $279.3 billion as of August 9, 2022.

Pfizer traces its origins to 1849, when Charles Pfizer and Charles Erhart founded Charles Pfizer & Co. in Brooklyn, New York. The company became a publicly traded company in 1942. In 1944, Pfizer successfully mass-produced penicillin, becoming the world’s largest producer of the first antibiotic.

More recently, the company has been at the forefront of efforts to contain COVID-19. In August 2021, its COVID-19 vaccine was the first to receive full US approval. Food and Drug Administration (FDA)following the agency’s Emergency Use Authorization (EUA) in December 2020.

The vaccine, along with COVID-19 treatment Paxlovid, helped make Pfizer the world’s top-ranked pharmaceutical company by revenue in 2021.

Acquisitions have fueled much of the company’s growth over the past two decades. Pfizer acquired Warner-Lambert in 2000 to take control of Lipitor, a blockbuster drug used to treat high cholesterol. Pharmaceutical companies spend huge amounts of money to develop new drugs. Once patented, these drugs can allow companies to reap outsized profits as the exclusive producer for years before competitors are allowed to develop and market generic alternatives.

Pfizer’s acquisition strategy in the early 2000s focused on companies with patented drugs. His deal for Warner-Lambert and the subsequent takeover of Pharmacia in 2003 are two examples. But as healthcare costs continued to soar, the market for cheaper generic drugs showed great potential for growth. As a result, Pfizer began targeting generic drug makers with attractive drug pipelines, including Hospira in 2015. More recently, the company has strengthened its cancer treatment portfolio by acquiring several drug developers focused on oncology.

$5.4 billion

The full value of Pfizer’s proposed acquisition of biopharmaceutical company Global Blood Therapeutics (GBT), announced in August 2022. GBT is the developer of Oxbryta, an FDA-approved drug for the treatment of sickle cell disease.

We take a detailed look at seven of Pfizer’s key acquisitions below.

Warner Lambert

  • Type of activity: pharmaceutical
  • Acquisition price: $116 billion (realized)
  • Date of acquisition: June 20, 2000 (completed)

Warner-Lambert was established in 1955 when William R. Warner & Co. joined forces with Lambert Pharmacal Co. The company subsequently grew primarily through acquisitions, including the 1970 purchase of Parke-Davis , once the world’s largest drugmaker.

In 1996, Warner-Lambert and Pfizer entered into a co-marketing agreement for Lipitor, a synthetic lipid-lowering medication and the world’s top-selling drug. Lipitor was Pfizer’s primary motivation in its Hostile takeover offer for the developer of Lipitor Warner-Lambert. Pfizer feared losing its marketing contract for Lipitor, under which it received half of the profits from sales of the drug. Warner-Lambert initially rejected the takeover bid, but after months of legal battles it was agreed in February 2000 to be acquired by Pfizer. The deal was completed in June 2000, making Pfizer the world’s second largest and fastest growing pharmaceutical company.

Pharmacy

  • Type of activity: pharmaceutical
  • Acquisition price: $60 billion (achieved)
  • Acquisition date: April 16, 2003 (completed)

Pharmacia was created in April 2000 by the merger between Pharmacia & Upjohn and Monsanto and its pharmaceutical unit, Searle. At the time of the merger, Searle had an agreement with Pfizer to co-promote Celebrex, a blockbuster arthritis drug the companies developed together. Celebrex is a nonsteroidal anti-inflammatory drug used to temporarily relieve pain and inflammation.

Pharmacia completed the spin off of its agricultural subsidiary Monsanto in August 2002. The month before, in July 2002, Pfizer had agreed to buy Pharmacia for $60 billion. The deal, finalized in April 2003, gave Pfizer all rights to Celebrex. This came at a time when pharmaceutical companies were struggling to develop new drugs, facing increasing competition from generic drug makers and pricing pressures from governments and private purchasers. This acquisition made Pfizer the number one pharmaceutical company by revenue in all major markets worldwide.

Wyeth

  • Type of activity: pharmaceutical
  • Acquisition price: $68 billion (realized)
  • Date acquired: Oct. 15, 2009 (completed)

Wyeth began as John Wyeth and Brother, established in Philadelphia by John and Frank Wyeth in 1860. By the late 1960s, the company’s Ovral was the leading oral contraceptive in the United States. It has since been discontinued.

In January 2009, Pfizer agreed to buy Wyeth in a deal valued at $68 billion. One of the motives was to cushion the blow of expected revenue loss once the period of exclusivity attached to the Lipitor patent is over.

The acquisition of Wyeth also increased that of Pfizer wallet adding two key drugs: Prevnar, a vaccine for infants against pneumococcal disease; and Enbrel, an arthritis drug. The company viewed vaccines and injectable biologics as therapeutic areas less vulnerable to generic competition.

Pfizer completed the acquisition of Wyeth in October 2009 following US and Canadian antitrust approvals.

Hospira

  • Type of activity: pharmaceutical products and medical devices
  • Acquisition price: $16 billion (realized)
  • Acquisition date: September 3, 2015 (completed)

Hospira became an independent, publicly traded company in 2004 after a spin-off from Abbott Laboratories (ABT). Over the next decade, the company became a leader in the development and manufacture of biosimilars, drugs functionally similar to more expensive biotech drugs.

Hospira’s biosimilar pipeline was key to Pfizer’s bid in 2015 to buy the smaller rival. Pfizer had spent years focusing on acquiring companies that made expensive patent-protected biotech drugs. Meanwhile, the new focus of governments and health insurers on reducing soaring medical costs is expected to fuel global demand for biosimilars. Hospira was also a leading provider of injectable drugs and infusion technology.

Meditation

  • Type of activity: biopharmaceutical
  • Acquisition price: $14.3 billion (realized)
  • Acquisition date: September 28, 2016 (completed)

Medivation was founded in 2003 by David Hung and went public through a reverse merge with a shell company in 2004. A reverse merger occurs when a private company buys a publicly traded company and resumes its listing on the stock exchange.

Meditation specialized in the development of anti-cancer drugs. The big prize for Pfizer when it acquired the company in 2016 was Xtandi, a drug for the treatment of prostate cancer. Xtandi generated about $2 billion in annual sales for Medivation, and analysts predicted those sales could double.

Medivation also had other oncology treatments in development. Pfizer expected these to benefit from the combination with its research efforts, helping the company become a leader in oncology.

Table BioPharma

  • Type of activity: biopharmaceutical
  • Acquisition price: $11.2 billion (realized)
  • Acquisition date: July 30, 2019 (completed)

Array BioPharma, a company focused on the discovery and development of targeted small molecule drugs to treat patients with cancer and other diseases, was founded in 1998. The biopharmaceutical company began collaborating with Pfizer in 2017 on cancer drug development.

Two years later, Pfizer paid a hefty premium to acquire Array BioPharma. The acquisition bolstered Pfizer’s expanding portfolio of cancer treatments with Braftovi and Mektovi. The drugs treat metastatic melanoma and other cancers.

Trillium Therapy

  • Type of activity: biopharmaceutical
  • Acquisition price: $2.2 billion (realized)
  • Acquisition date: Nov. 17, 2021 (completed)

Trillium Therapeutics, a clinical-stage immuno-oncology company developing therapies for the treatment of cancer, was launched in Canada in March 2004. In August 2021, Pfizer agreed to buy Trillium at a 118% premium to the 60-day stock. weighted average the price. Pfizer completed the deal in November 2021.

Pfizer said the deal strengthens its cancer treatment portfolio. Trillium is currently developing two biologics, molecules TTI-622 and TTI-621, to treat cancers of the blood, bone marrow and lymph nodes.

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