Shares of the Indian units of drug majors Pfizer and Wyeth gained today the companies said they would merge in a stock-swap deal and operate under a single brand as part of efforts to boost business.
Wyeth shares zoomed 13.6 per cent to settle at Rs 924.80 on the BSE after climbing as much as 19.99 per cent during the day. Pfizer surged 12.14 per cent to close at Rs 1,605.30 after advancing 15.11 per cent in the intra-day session.
The board of directors of Pfizer Ltd and Wyeth Ltd, at separate meetings on Saturday, approved proposals to merge Wyeth India with Pfizer India and operate under the Pfizer brand.
They approved a swap ratio that would give Wyeth investors seven Pfizer shares for every 10 Wyeth shares they hold. The boards also announced an interim dividend of Rs 360 per Pfizer share and Rs 145 per Wyeth share.
In October 2009, Wyeth USA merged with Wagner Acquisition Corporation, a wholly owned subsidiary of Pfizer Inc, and consequent to this merger, Wyeth Ltd became a subsidiary of Pfizer in India.