Skip to main content
Premium Trial:

Request an Annual Quote

Pfizer Grabs Pharmacia, Creates $7 Billion R&D Powerhouse

NEW YORK, July 15-Pfizer's acquisition of Pharmacia, announced today, will create a drug research powerhouse with a total R&D budget projected to top $7 billion.

 

This research jackpot would dwarf the budgets of other big spenders in the pharmaceutical arena and make Pfizer the undisputed leader in drug development spending.

 

In 2001, Pfizer spent $4.8 billion on research, and Pharmacia doled out $2.3 billion.

 

The nearest rival, GlaxoSmithKline, spent 2.5 billion pounds (nearly $4 billion U.S.) on R&D in 2000.

 

In the acquisition, Pfizer will assume control of a combined R&D pipeline of nearly 120 drugs currently in development.

 

Pfizer will also take charge of a number of recent collaborations that Pharmacia has struck with companies in the genomics and proteomics sectors.

 

In the last year, Pharmacia arranged an antisense inhibitor gene validation deal with Isis, a gene library agreement with Galapagos Genomics for target identification and validation, and a pharmacogenomics collaboration with DeCode Genetics. It also has a structural proteomics collaboration with Syrrx, which the biotech company claims is the pharmaceutical industry's first large-scale, multi-family research project in structural proteomics.

 

Pfizer, for its part, has recently struck an expanded toxicogenomics partnership with Gene Logic, arranged licenses for Gene-IT's sequence-comparing software and for Lion's ADME simulation platform, and launched a deal with Athersys to create human cell lines that express drug targets.

 

Pfizer will acquire Pharmacia through a stock-for-stock transaction valued at $60 billion. The company will exchange 1.4 shares of Pfizer stock for each share of Pharmacia stock, a premium of roughly 35 percent over Pharmacia's Friday closing price. Pharmacia will continue with its spin-off of Monsanto.

The Scan

Support for Moderna Booster

An FDA advisory committee supports authorizing a booster for Moderna's SARS-CoV-2 vaccine, CNN reports.

Testing at UK Lab Suspended

SARS-CoV-2 testing at a UK lab has been suspended following a number of false negative results.

J&J CSO to Step Down

The Wall Street Journal reports that Paul Stoffels will be stepping down as chief scientific officer at Johnson & Johnson by the end of the year.

Science Papers Present Proteo-Genomic Map of Human Health, Brain Tumor Target, Tool to Infer CNVs

In Science this week: gene-protein-disease map, epigenomic and transcriptomic approach highlights potential therapeutic target for gliomas, and more