|"It's better to burn out than fade away!"|
"One big reason why some analysts are all for the deal is one reason why AstraZeneca might not be. In a word? Synergies. Pfizer sees big opportunities for cost cuts; ISI Group analyst Mark Schoenebaum ballparks that expectation at 25%."
Having been present for 2 of Big PFE's acquisitions, the "synergies" all come out of shutting sites and firing staff. True synergy would be to keep the bulk of the R&D that made the company attractive in the first place. Instead Ann Arbor & Kalamazoo were shuttered.
What happens to all of the pharmaceutical analysts when there is only one company left standing (Pfizer) after acquiring everyone else? That's the direction it is heading, as this will be Big Merger #4 for PFE. After flogging these kinds of value destroying acquisitions (in the sense of drug R&D), but making a bundle of cash off of them, it would be ironic if there were no further need for analysts, since there is only One Company. Incorporated in the UK…or maybe Russia if they can get a better tax deal.Pfizer's insistence on purchasing AstraZeneca makes sense now! It's all a part of some sort of weird Gathering of the pharma companies, where There Can Be Only One at the end. Who knows what The Prize will be?* **
*For those who are not obsessed with The Eighties and its lousy-but-good movies, here is the context of this very weird post.
**Actually, it's super-easy to figure out what this is about -- it's money (in the form of tax avoidance). Not science, just money. That it will ultimately end up destroying a bunch of pharma research jobs is besides the point. Depressing.