Shares of Pfizer, Wyeth record gains on merger news

MUMBAI: Shares of drug MNC firms, Pfizer and Wyeth touched new highs in the BSE on Wednesday, reacting to news that the firms will discuss a merger soon. The boards of Pfizer and Wyeth will meet on November 23 to discuss a scheme of amalgamation on November 23, the companies said in a notice to the stock exchange. While the Pfizer scrip hit a 52-week high at Rs 1523 during the day, finally closing at Rs 1415, a gain of 5%, Wyeth hit the 20% upper circuit, ending the day at Rs 776.80, which is the month's high.
Globally, Pfizer which acquired rival drug firm Wyeth four years back in a $68 billion deal, exists as a single entity, while in India, Pfizer and Wyeth had continued as separate listed entities. Analysts that the merger of both the entities has been on the cards'' since the global merger happened in 2009.
The merger should be a positive as there will be synergy in operations.
The merger will create synergies in terms of operations, R&D and therapy areas, and is expected to save costs for the drug firms, particularly Pfizer which has been slipping on growth, analysts say.