Pfizer's $68 billion deal to buy Wyeth is putting the heat on Bristol-Myers Squibb. Just as Pfizer has to deal with the loss of blockbuster revenue following the looming loss of patent protection, BMS gets the lion's share of its revenue from three big drugs. And its strategy to buy up biotech assets as a way of ginning future revenue is drawing a significant amount of skepticism.
That all sets the stage for new partnership deals and a possible takeover bid, according to a piece in the New York Times. And Sanofi-Aventis is a likely favorite among potential bidders.
"Our view has been that in the large cap pharmaceutical space, the two obvious and attractive targets were Wyeth and Bristol," says UBS analyst Roopesh Patel. "Wyeth has already signed a pact with Pfizer. I would not be surprised if speculation now surrounding Bristol increases."
BMS spent $385 million on deals to acquire Kosan and partner with Exelixis, but any new products it gets from the biotech sphere isn't likely to make up for the big money it gets for Plavix, Abilify and Avapro.
- read the article in the New York Times