Is Pfizer-Wyeth merger aligned with value creation in the pharmaceutical industry?

Abstract

Is Pfizer-Wyeth merger aligned with value creation in the pharmaceutical industry? This empirical research evaluates whether the Pfizer-Wyeth merger created value for shareholders, trying to assess if the specific case study is in line with the principal pattern of the industry. In order to achieve these goals, a detailed value creation appraisal is implemented through market reaction measurement at the announcement dates of acquisition. Afterward, a statistical regression has been performed determining which factors mainly affect enterprise’s performance. The conclusion suggests that the deal’s value creation is aligned with the pharmaceutical industry trend and that company performance is affected by financing structure, EPS and transaction size.