When the giant pharmaceutical company Pfizer announced on January 26 that it was acquiring Wyeth for $68 billion analysts started questioning what benefits the deal would bring and for whom. Pfizer executives suggest the acquisition makes strategic sense by expanding the company into a range of new areas and by helping make up for an expected loss of more than $12 billion in annual revenues once its Lipitor patent expires in 2011. But Wyeth also brings some liabilities -- notably continuing lawsuits over its hormone replacement drugs and fen-phen diet pill. Knowledge at Wharton asked Wharton health care professor Patricia Danzon and marketing professor Jagmohan Raju to offer their views on the pros and cons of the deal.

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