By USA Today Editor AUGUSTa, Ga.
— Pfizer is set to acquire drugmaker Vioxx and its entire global medical business, including its headquarters in the United Kingdom, in a deal that would create a $9 billion company with a global market cap of $14.5 billion, people familiar with the transaction said Friday.
The deal is expected to close in the second half of this year, the people said, declining to be named because it is still in discussions with regulators.
Pfizer’s board approved the deal on Friday.
The company has a market cap in excess of $12.4 billion, according to data compiled by Bloomberg.
The news comes as Pfizer, which has been the target of regulators for years, has been embroiled in multiple lawsuits over the past few years.
Pfizers own a number of other drugs, including the antidepressant drug Zoloft, which is used to treat bipolar disorder.
The company also has been under scrutiny for a new form of pneumonia treatment that the Food and Drug Administration has said could be harmful to the lungs.
Pfists latest filing for its 2018 tax year showed that it earned $6.8 billion.
The companies acquisition is expected be a boon to Pfizer as it has been a target of regulatory scrutiny over the years for improper billing practices and its failure to properly treat infections.
The pharmaceutical giant has been working with a number local governments to try to stem the spread of the deadly coronavirus.
The deal could help to help it achieve a more cost-effective and streamlined strategy, said David Lasker, managing director at BofA Merrill Lynch.
The Pfizer deal will give the company more room to focus on growing its core business while expanding into areas that are outside of its core medical business.
In particular, the company has been looking to acquire other areas such as biosciences and biotechnology to expand its ability to develop drugs and vaccines, the two people said.
“This deal will further strengthen Pfizers ability to expand into areas like biosciencing, biotechnology and clinical trials,” said a statement from the company.
The acquisition of Viozzx would add $1.2 billion in value to Pfizers annual revenue, the companies said in their most recent quarterly financial report.
Viozzys market value is around $12 billion, and the company generates around $1 billion in revenue from sales of its products.
The combined company will have a market capitalization of about $9.3 billion, the executives said.
Pfizer did not immediately respond to a request for comment.
For the past five years, the drugmaker has been facing criticism over how it has treated some infections and how it handled cases in which it had not properly administered a treatment.
Last month, the U.S. Food and Safety Administration warned Pfizer about the potential risk of the company mislabeling a new drug and mismanaging clinical trials of that drug.
That caused the company to change how it marketed the new drug.
Pfisers previous drug, Avastin, has a much lower potential for causing side effects, and Avastins ability to treat some lung infections has been widely praised.
Pfiser has also been fighting lawsuits brought by the government over its sales practices and failed to properly report the use of its blockbuster drug Daraprim.
Pfizers new drug, Darapris, was approved by the FDA in 2016 but has not yet been widely used by patients.
It is used in a number hospitals across the U, including in the Us primary healthcare setting.
The company is expected also to improve its drug portfolio.
Its drug portfolio includes a number treatments that have been used for decades for other diseases, including some for cancer, including drugs to treat melanoma and HIV.
Pfishers portfolio includes several new cancer treatments, including new ones that target breast and colon cancer, as well as an anti-cancer drug to treat prostate cancer.
The people familiar said the company is looking to expand to a number areas in the coming years, including to areas that include bioscience and biopharma.
In a statement, Pfizer said: “We are excited to bring ViozziX to our company, our shareholders and the American people.
We are proud to have the support of our investors, our team, our patients, our community and all of our employees.”