Drug maker Pfizer has agreed to buy rival Pharmacia Corporation for $60 billion, the companies announced this morning in what would be the biggest corporate merger in more than a year.
Pharmacia, which makes Nicorette, has three facilities in Ireland employing 200 people, while Pfizer employs 1,200 people here. Its plant in Ringaskiddy is involved in the production of Viagra.
The marriage creates a mammoth new drug company with annual revenues of around $48 billion and gives Pfizer - already the world's biggest pharmaceutical - full rights to one of the industry's most prized products, the popular arthritis drug Celebrex.
Under terms of the deal, Pharmacia will proceed with previously announced plans to spin off its remaining 84% ownership of Monsanto to its current shareholders. After the spinoff, Pharmacia shareholders will receive 1.4 shares of Pfizer stock for each share of Pharmacia. Pfizer shareholders will end up owning around 77% of the new company.
The companies say the deal will bring savings of $1.4 billion in 2003, increasing to $2.2 billion in 2004 and $2.5 billion in 2005.
