• Wall Street Journal, Friday, January 23, 2009 11 AM

In a deal that "would redraw the boundaries of the global drug industry," Pfizer is negotiating to acquire Wyeth in a deal that could be valued at more than $60 billion, Matthew Karnitschnig and Jonathan D. Rockoff report. Spokesmen for both companies refuse to comment on "rumors."

Analysts say Wyeth has products and businesses that complement Pfizer's lineup, and it has established a foothold in biotechnology. It has had strong success with Prevnar, its pediatric pneumococcal vaccine, for example. Another strong biotechnology seller is the anti-inflammatory biologic Enbrel, which Wyeth co-markets with Amgen. Wyeth also would bring an animal-health business and consumer-health unit whose brands include Advil, Robitussin and ChapStick.

Pfizer, the world's largest drug maker by revenue, would likely use a combination of cash and stock for the acquisition. If completed, the deal could create billions in cost savings through the combination of back-office operations, research and development, sales and manufacturing.

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