Pfizer Reveals More Details of $68 Billion Deal

The world has already heard that Wyeth can get a $4.5 billion reverse breakup fee if Pfizer fails to get funding for the merger. At the investor lunch, executives revealed that Pfizer would also pay a tiered breakup fee: $1.5 billion if the deal was called off in the first 30 days, and after that it would be 3% of the total deal value. In addition, the deal is negotiated so that neither party can call off the deal if there is a major legislative change in the pharmaceutical industry — not that anyone expects much soon, but with a new administration on its way, the bankers wanted to cover all the bases. D’Amelio clarified, “So, I actually think that obviously there are always potential challenges presented by government policies, but some of the ones that people have been most concerned about historically I don’t think — frankly, I don’t see as being on the table. There’s nobody in a responsible position that I am aware of that’s advocating the single payer system. There’s nobody that’s advocating price controls…