Following the completion of the acquisition of Wyeth by Pfizer Inc. (NYSE: PFE; LSE; PFZ) for $67 billion last week, the company is now embarking on the complicated integration. The main effect of the merger on the Israeli market is that well-known Wyeth products, such as Advil and Centrum, as well as lesser known products are now the property of Pfizer.
For the past 68 years, the Israeli distributor for Wyeth was Neopharm Ltd., owned by the Fuhrer family. It is one of the longest ever distribution contracts in the pharmaceutical industry. Neopharm has been in the news lately because the Fuhrers have been trying to acquire British drug distributor Goldshield Group plc (LSE: GSD) for $300 million, in its first foreign foray.
Pfizer has an independent representative in Israel, and Wyeth's local activity will presumably eventually be transferred to it. However, Pfizer Pharmaceuticals Israel country manager Ofra Feinmesser says that no such decision has been made yet. "We're in no hurry to make changes. All the present arrangements worldwide are being kept in effect for the marketing of new products. Neopharm is an excellent partner, and we'll be happy to continue the partnership."
Feinmesser added, "The main difference is that the combined marketing power of Pfizer products marketers in Israel is boosted by the merger. Together, we're one of the leading marketers in Israel. The important thing for us is that every Pfizer representative in Israel will also represent the company's values."
As for collaborations with Israeli drug development companies, Pfizer is an investor in Quark Pharmaceuticals Ltd., and Pfizer Ventures recently invested in Novocure Ltd. Feinmesser said that there is definitely an intention to expand this activity in the future.
Published by Globes [online], Israel business news - www.globes-online.com - on October 22, 2009
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