It was in, then it was out, then back in. The news rumors over Pfizer's
Pfizer may have been in till the end, but its bid to push farther into the generic-drug business with one large acquisition won't happen. Teva Pharmaceuticals
At 2.15 times 2009 sales, the price is lower than what competitors like Mylan
That lack of synergies will be Pfizer's greatest hurdle in making a big push into generics. Unless Pfizer wants to overpay, it's at a disadvantage against large generic-drug companies, who are better able to offer higher deal prices simply because of their ability to cut costs as they combine.
Pfizer's best bet could be to buy a generic-drug company like Stada, with a presence in developing countries. Other large pharmas like GlaxoSmithKline
While it would have been nice to diversify into generics, Pfizer's investors shouldn't at all be disappointed by today's news. It's better to have lusted and lost than to have overpaid and won.
Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. Novartis is a Motley Fool Global Gains selection. The Fool owns shares of GlaxoSmithKline and has a disclosure policy.