We wrote of a rumored deal between Pfizer, the world's top drug maker, and Wyeth, a rival, last week, and on Monday Pfizer made it official.
The deal would have Pfizer buying Wyeth for $68 billion in cash and stock. This would be the largest merger in pharmaceuticals in eight years.
However, despite assurances last week by Wyeth, the company has withdrawn from talks to take over Dutch biotechnology firm Crucell, sending Crucell shares down as much as 23% on Monday.
Wyeth originally said any deal with Pfizer would not affect its Crucell takeover bid.
Pfizer has agreed to pay $33 in cash and 0.985 of a Pfizer share for each common share of Wyeth. At Friday's closing price for Pfizer, that values Wyeth at $50.19 a share. Wyeth closed at $$43.74 on Friday.
At the same time, Pfizer reported its earnings, citing a 90% decline in Q4 profit, and announcing a 10% reduction in its workforce. It also said it would cut its dividend payment by 50%.
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