MIS4596-Tony Messina-Sec 002-Spring 2017

Pfizer Buys Out Wyeth

On January 26th, 2009, Pfizer, a multi-billion dollar company agreed to buy out Wyeth for $68 billion. Pfizer, a company known for its large dividends, upset investors by slashing their dividends 16 cents per share. “The dividend had led the industry, although the company maintains it still remains competitive with other drugmakers.” With the merge of these incredibly large pharmaceutical companies, it was seen that a wave of consolidation could have potentially started for pharmaceutical companies. This merger brings up two questions for myself:

-Do you believe that Wyeth’s IT architecture and global outlook would have been continued or scrapped for Pfizer’s own plan?

-Do you feel that (knowing how large and successful Pfizer is today) that this acquisition was in Wyeth’s best interest for reaching a global market?

Source: http://www.reuters.com/article/us-wyeth-pfizer-idUSTRE50M1AQ20090126

One Response to Pfizer Buys Out Wyeth

  • While Pfizer’s strict IT governance and reporting structure could have a positive influence on Wyeth’s global IT architecture initiative, I can’t see Wyeth’s progress being scrapped. Wyeth was able to establish a sense of unity among its decentralized subsidiaries, so enforcing a new initiative could have negative implications with these relationships. I believe now more than ever, there be a growing level of importance for centralization between Pfizer, Wyeth and all subsidiaries. This growing level of importance will certainly be in Wyeth’s best interest for reaching its global market.

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