Political Cronyism? Pfizer and Wyeth Merger - follow the money...

[WhiskeyGirl]

I read this morning the some pharmacies are suing Pfizer and Wyeth over a proposed merger.  What's wrong with a business merger?  Is this an example of capitalism?  Socialism? 

Business as usual by companies the federal government deems 'to big to fail' and BTW taxpayers get to bail them out and pay for generations?

"Pharmacies Sue Pfizer and Wyeth over $68 Billion Merger"

How are they paying for that merger?

If pharmaceutical giants Pfizer and Wyeth are allowed to merge, the result will be higher drugs prices, lower quality, and the loss of thousands of jobs, according to a lawsuit seeking to halt the $68 billion merger. ...the two drug makers which, if combined, would control 40% of the market. Pfizer and Wyeth are currently the first and fourth biggest drug makers in the United States...
 
One-third of the merger will be financed by loans from Bank of America, Citigroup, Goldman Sachs and JPMorgan Chase, which received a combined total of $120 billion from the TARP bank bailout.

http://www.allgov.com/ViewNews/Pharmacies_Sue_Pfizer_and_Wyeth_over_68_Billion_Dollar_Merger_90828

If capitalism was really working, would Bank of America, Citigroup, Goldman Sachs and JPMorgan Chase be able to provide any financing? 

Taxpayers paying for generations for a bailout.

Taxpayers will be paying higher prices.  Any example where prices were lower over time after a merger? 

Job losses.

Would any of this be possible without financing by federal/political intervention?

Who are the others providing financing?  Where are they getting the money?

Why isn't Washington working for people?  Taxpayers?

In the real world, Main Street doesn't get bailed out by anyone.  Bankrupt companies do not go and financie mergers.

jmho

[WhiskeyGirl]

FDA delays decision on Wyeth vaccine

By Miriam Hill
Inquirer Staff Writer

Wyeth late yesterday said the Food and Drug Administration had delayed approval of Prevnar 13, a vaccine that is one of the primary drivers behind the company's anticipated $68 billion merger with Pfizer Inc...The agency delayed the approval date from Sept. 30 to Dec. 30 after Wyeth submitted new information about how it was measuring and validating the vaccine's physical and chemical properties.

"This has no bearing on our discussions with Pfizer," Wyeth spokesperson Natalie de Vane said. "The decision has nothing to do with clinical data, nothing to do with safety and efficacy or with manufacturing capabilities."

...

An approved version of Prevnar, which protects children against meningitis and other diseases caused by pneumococcal bacteria, accounts for $2.7 billion in yearly sales. Analysts have estimated that figure could soar to $6 billion or $7 billion if Wyeth got FDA approval for a new version, which would expand the number of pneumococcal strains that the vaccine protects against from seven to 13.

...

The pharmaceutical industry has refocused efforts on vaccines because they are difficult to manufacture, leaving them less vulnerable to generic competition. That is especially appealing to New York-based Pfizer, which is facing patent expiration on its best-selling cholesterol drug Lipitor.

http://www.philly.com/inquirer/business/20090812_FDA_delays_decision_on_Wyeth_vaccine.html

In the Obama healthcare plan for America, how much will drug companies make everytime they issue a new vaccine?  Payed for by Obamacare? 

If a vaccine just adds protection for a few new strains, and produces BILLIONS more in profit, will healthcare ever get cheaper?

Instead of pay $2.7 BILLION, taxpayers will be on the hook for $6 or $7 BILLION?   Triple profits?

How much next year or the year after when they add another seven strains?

Where is the competition?  More competition after merger?  Less?

Bigger profits after Obamacare passes?

[WhiskeyGirl]

"In Pfizer-Wyeth Merger Suit, It's Capitalism v. Socialism"

The suit filed by various pharmacies to block the Pfizer-Wyeth merger is probably a non-starter. Europe already approved the deal; the region is generally stricter than the U.S.’s FTC.

http://industry.bnet.com/pharma/10003889/in-pfizer-wyeth-merger-suit-its-capitalism-v-socialism/

Europe stricter than the U.S.?

What does Europe have to lose by approving this merger?

Low drug prices?

I seem to recall that Europe bargains for drugs, and pays pennies on the dollar compared to what Americans pay.

All they're doing, imho, is ensuring that Americans get stuck with an increasing drug bill. 

Americans are always stuck paying top dollar.    Even if individual consumers choose generic, our government programs force us to pay for others that choose name brand. 

When will Americans have ACCESS to the same CHEAP prices Europeans, Indians, and others pay for the same brand name drugs?

[WhiskeyGirl]

"Only the little people pay taxes."

UPDATED: On Tax Issues, Pfizer Plays Michigan Like a Violin

Pfizer is asking Kalamazoo, Mich., for tax breaks worth $367,000 on a building it has already built and fully staffed. It’s not the first break that Michigan officials have offered Pfizer.*

I wonder if that is stimulus/recovery/reinvestment money saving jobs?

The current tax break that Pfizer wants would thus reward the company for taking advantage of the 2003 incentives, and for continuing to exist* would kick in even though Pfizer has already committed to Kalamazoo, according to the Kalamazoo Gazette:

A $28 million business investment is nearly complete, and most of the 350 employees affected by the project are already working downtown.

Here’s the confusing part: Pfizer’s doings in Kalamazoo will bring in $395,000 in new revenue, but a 50 percent abatement will lower an expected $291,000 tax increase down to $145,500.

It’s not all good news for Pfizer on the tax front. Its most recent 10-Q statement with the SEC indicates that the company is being audited by the IRS for 2002 through 2008. In foreign countries, Pfizer is being audited for the following years:

Canada (1998-2008), Japan (2006-2008), Europe (1997-2008, primarily reflecting Ireland, the U.K., France, Italy, Spain and Germany) and Puerto Rico (2004-2008).

http://industry.bnet.com/pharma/10003748/on-tax-issues-pfizer-plays-michigan-like-a-violin/?tag=content;selector-perfector

This site has some intersting stories.