Pfizer offered to divest some or all of its animal health business assets to ease EU regulatory concerns of its merger with the pharmaceutical company Wyeth. The European Commission, the 27-state antitrust regulator, has until July 20 to review the Pfizer’s $65 billion acquisition of Wyeth, according to Bloomberg. Shareholders of Wyeth are also expected to vote on the merger on July 20.
Pfizer would not state specifically what assets it would divest for competitive reasons. It has said before that such action may be necessary. However, any divestiture of its animal health business assets is not expected to be more than 10% of its $4 billion annual revenue.
Pfizer’s acquisition of Wyeth would offset any revenue loss when Pfizer’s Lipitor drug begins facing generic competition in 2012. Lipitor contributes $12 billion to Pfizer’s annual revenues. Pfizer will gain the pneumonia vaccine Prevnar and depression pill Effexor from the deal. According to Pfizer’s Chief Financial Officer, Frank D’Amelio, the merger will help sustain Pfizer’s 2008 sales and profit levels through 2012. Pfizer expects the deal to close by year’s end.