SOURCE: The Bedford Report

The Bedford Report

October 13, 2010 08:46 ET

Major Drug Manufacturers Ramp Up M&A Activity

The Bedford Report Provides Analyst Research on Pfizer and GlaxoSmithKline

NEW YORK, NY--(Marketwire - October 13, 2010) -  In recent months the Major Drug Manufacturers industry has become a hotbed of Merger and Acquisition activity. As companies get larger and experience diminishing returns in their core business, they are showing their willingness to utilize their large resource pools to acquire smaller companies in a race to diversify themselves. Given the limited opportunities for meaningful acquisitions, the companies in stronger financial positions, and the willingness to act, stand to gain the most from such activities. The Bedford Report examines the outlook for companies in the Major Drug Manufacturers Industry and provides research reports on Pfizer, Inc. (NYSE: PFE) and GlaxoSmithKline PLC (NYSE: GSK). Access to the full company reports can be found at:

On Tuesday Pfizer announced that it plans to purchase King Pharmaceuticals for $3.6 billion in cash, or roughly $14.25 a share. Pfizer said the deal would yield initial cost savings from operating expenses of at least $200 million. Both companies' boards have approved the deal and Pfizer expects the transaction to close early in the first quarter of 2011 at the latest. Pfizer also noted that the deal expands its presence in the painkiller market. King Pharmaceuticals makes what are known as "abuse resistant" painkillers. King already markets one drug, called Embeda, which is similar to the top selling OxyContin.

The Bedford Report releases regular market updates on the Major Drug Manufacturers Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us for free at and get exclusive access to our numerous analyst reports and industry newsletters.

Pfizer's acquisition of King is just one example in the recent trend of major drug manufacturers buying smaller biotech firms. Sanofi-Aventis is currently pursuing Genzyme, maker of drugs for rare diseases, with a hostile bid of $18.5 billion on the table. Genzyme's board has already rejected Sanofi-Aventis' $69 per share offer, and has reportedly received indications of interest following preliminary communications with Pfizer and GlaxoSmithKline.

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