Will‘Company X’Seek Another Deal after Wyeth Gone?

So Abbott is the mysterious “Company X” that looked into buying Wyeth back in December, reports the WSJ. It’s a surprising revelation given the size of the deal and the overlap between Abbott’s drug Humira and Wyeth’s Enbrel. It also suggests that there might be further consolidation in the drug industry if Abbott stays in the hunt.
Abbott — which sells drugs, nutritionals, medical devices and diagnostics — had a solid 2008 despite the economy, particularly in its device business where its new drug-coated stent, Xience V, became the market leader in a matter of months. What’s more, Abbott doesn’t face as much generic competition as some other drug makers: Humira, a $4 billion blockbuster and Abbott’s biggest product, won’t go off-patent until 2016.
But like others in the industry, Abbott has a rather thin pipeline of experimental drugs, which could fuel its interest in making a major acquisition. Bristol-Myers or Eli Lilly have been rumored as potential takeover targets in the industry, but Abbott may not have the cash or the interest for a deal of that size. Abbott couldn’t be reached immediately for comment.