After Allergan Merger Halt, Vaccines a Focus for Pfizer

New U.S. Treasury regulation has dissuaded Pfizer from its planned merger with Ireland-based Allergan. The two companies agreed on Tuesday to terminate the deal. The tax inversion move would have benefited Pfizer’s profitability and reintroduced the company to the dermatologics market. Pfizer will now consider business divestitures in order to boost its profits. Pfizer previously spun-off its animal health business in 2013, which now operates as the veterinary pharmaceuticals and diagnostics company Zoetis.

Continued patent expirations of important pharmaceutical products have also impacted Pfizer’s revenues, necessitating an aggressive re-positioning of the company’s business which has resulted in the expansion of its vaccines operation. Pfizer is the world’s largest pediatric vaccine company according to Vaccines 2016: World Market Analysis, Key Players, Trends, Pediatric and Adult Segments (Influenza, Cervical Cancer, Combinations, Hepatitis, Pneumococcal, MMR, Varicella, Poliovirus , HIB, Others) On a global basis, Pfizer employs more than 78,000 people worldwide. In 2015, Pfizer reported total global sales of $48.9 billion, up 6% from the prior year, as the company continues to optimize its opeartions though the acquisition of complementary businesses and divestiture of operations that no longer fit its core mandate. Prevnar was FDA-approved for use in children in 2000 in the United States, and is now approved in more than four dozen countries. The vaccine-pneumococcal 7-valent conjugate vaccine (diphtheria CRM197 protein containing 4,6B,9V,14,18C,19F, and 23F)-targets the seven serotypes of pneumococcal bacteria most prevalent in the U.S., which are also among the most resistant to antibiotics and cause 80% of pneumococcal disease in infants. . Pfizer has since phased out original Prevnar in favor of Prevnar 13. In early 2015, Prevnar 13 received an indication expansion in Europe, to include the prevention of pneumonia caused by the 13 pneumococcal serotypes in the vaccine in adults 18 years and older.