Pfizer acquires Wyeth, plans to cut work force

? Officials announced Monday that Pfizer has acquired Wyeth Pharmaceuticals for $68 billion in cash and stock. Some experts say the buyout could have a huge impact on the job market in the state, considering

News 12 Staff

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Jan 26, 2009, 6:14 PM

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Updated 5,748 days ago

? Officials announced Monday that Pfizer has acquired Wyeth Pharmaceuticals for $68 billion in cash and stock.

Some experts say the buyout could have a huge impact on the job market in the state, considering Pfizer and Wyeth each employ a little more than 1,500 people in New Jersey.

Pfizer officials say they plan to cut their work force by about 10 percent and reduce the number of manufacturing sites.

With the economy in turmoil, Pfizer was able to acquire billions in loans from five banks and will be paying a little more than $50 a share.

Wyeth shares closed at $43.74 a share on Friday, and experts say the acquisition is a big deal on Wall Street.

?There is an impact coming very strongly on the state. So far the street is looking favorable on the deal,? says Wall Street employee Bob Plunket.

On the other hand, Pfizer officials say they are preparing for what they believe will be a major loss in revenue. Lipitor, the world's best-selling drug, and other major products have lost patent protection.

Pfizer is expected to lose billions of dollars in sales to cheaper generics.