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Pfizer Inc. (NYSE: PFE)
235 East 42 Street,
New York, NY 10017
Chairman and chief executive officer: William C. Steere Jr.
Revenues (FYE December 31, 1999): $16.2 billion
Net income: (FYE December 31, 1999): $3.2 billion
Market capitalization: $180 billion
Employees: 50,900
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Business New Haven
7/10/2000
By: BNH
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The names for these drugs are quite
recognizable: Zyrtec, Viagra, Zoloft and Celebrex. All are produced by Pfizer
Inc. (NYSE: PFE).
Other easily recognizable remedies
available include Benadryl, Sudafed and Sinutab - all made by the Warner-Lambert Co. (NYSE:WLA).
With the June 19 Federal Trade Commission (FTC) approval of the merger of Pfizer Inc. and Warner-Lambert, these products and more will all soon be under the same corporate roof.
This latest announcement caps off 150 years of Pfizer history dating back to the mid-19th century. Starting as a chemical manufacturing business, the company branched out into manufacturing medicinal preparations by the time of the Civil War, supplying drugs to the Union military.
In the early 20th century Pfizer developed a fermentation process using sugar or molasses and bread mold to create citric acid, which by World War II had a more significant implication when the same process was used to manufacture the antibiotic penicillin. By mid-century Pfizer had discovered its own antibiotic product, Terramycin, an event that transformed the company from a chemical into a pharmaceutical business.
Fifty years later, at the dawn of the 21st century, Pfizer will join forces with Warner-Lambert, a company with 44,000 employees, to create the world's largest pharmaceutical concern. Today Pfizer develops prescription drugs for cardiovascular disease, infectious diseases, central nervous system disorders, diabetes, arthritis/inflammation and allergy symptoms, among others.
The company also provides non-prescription drugs including such well-known names as Cortisone, Desitin and Visine. In addition Pfizer offers medications for animal and pet care such as its Rimadyl and Revolution products. In 1999, 92 percent of Pfizer's revenues were derived from pharmaceuticals, and the remainder from animal-health products.
Warner-Lambert offers pharmaceuticals, such as analgesics, lipid regulators, anticonvulsants and cardiovascular products. The company also offers a line of consumer products including toothpastes and mouthwashes such as Listerine and Efferdent, and cold and sinus relief preparations under such names as Actifed, Halls and Benylin First Defense. It also has a line of candies including chewing gum and mints, including Certs, Chiclets and Dentyne.
Per terms of the merger agreement
in a tax-free transaction, Pfizer plans to exchange 2.75 shares of its common stock for each outstanding share of Warner-Lambert stock. Thus far it is expected that the new company will continue under the Pfizer name.
As a condition of the Pfizer/Warner-Lambert merger approval, the FTC is requiring that the companies divest businesses in four areas: Alzheimer's, cancer, depression and lice (including Pfizer's RID product). Otherwise ownership of these is believed to constitute a possible monopoly.
The FTC has also allowed time for public comment on the proposed merger until July 19, after which the federal agency is expected to finalize the agreement.
For the 1999 year, Pfizer's total revenues grew 20 percent to $16.2 billion from $13.5 billion in 1998. Net income decreased five percent to $3.2 billion (82 cents per diluted share), compared to 1998 net income of $3.4 billion (85 cents per diluted share) due to certain write-offs. Warner-Lambert's revenues were $12.9 billion with earnings of $1.7 billion ($1.96 per share).
For the first quarter of 2000, Pfizer reported revenues of $4.3 billion, a ten-percent increase over 1999 first-quarter revenues of $3.9 billion.
Net income for the quarter was $1.18 billion (31 cents per diluted share), a 45-percent hike over 1999 first-quarter net income of $815 million (21 cents per diluted share). Warner-Lambert reported a 13-percent increase in net sales to $3.4 billion; net income was reported at $1.4 billion.
On June 20 Pfizer's stock closed at 46 1/4. The 52-week range was a low of 30 and a high of 48 1/8. On June 19 Warner-Lambert's stock closed at 129 3/4. The 52-week low/high was 60 13/16 and 132 1/4, respectively.
From chemicals to medicinal preparations and now to pharmaceuticals, Pfizer has written its own prescription for a highly successful global business. In 1999 the company was chosen by Forbes as “Company of the Year” and more recently by Fortune as one of the “100 Best Companies to Work For.” Business Week ranks the Pfizer board of directors as one of the 25 best in the world. Pfizer's history continues - now with a new partner in Warner-Lambert.
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