Friday, Pfizer Inc. (PFE) said it has received a request for additional information from the U.S. Federal Trade Commission or FTC in connection with its proposed acquisition of Wyeth (WYE). Reacting to FTC's 'second request', Pfizer noted that the request was expected as a part of the regulatory process under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

New York - based Pfizer said it intends to respond 'expeditiously' to the request and continue to work cooperatively with the FTC in connection with its review.

Earlier, the official confirmation of the deal came in late-January when Pfizer announced that it has agreed to acquire Madison, New Jersey - based research driven pharma and health care products company Wyeth in a cash-and-stock transaction valued at $50.19 per share, or a total of about $68 billion. As per the agreement, Pfizer would pay $33 in cash and 0.985 of a share of its stock for each share of Wyeth. The deal represented a premium of 15% over Wyeth's closing stock price of $43.74 on 23rd of January.

Following the acquisition announcement, Credit Suisse upgraded Pfizer from 'Neutral' to 'Outperform' and increased its price target.

Pfizer's acquisition of Wyeth makes sense, as patents of some of its key drugs are set to expire in the next few years. Notable among them is cholesterol-lowering drug Lipitor, with annual sales of about $12 billion and whose patent expires in November of 2011. The drug accounted for 26% of the company's total sales in 2008.

On March 25, Pfizer completed the offering of $13.5 billion of senior unsecured notes. A portion of the net proceeds from the offering would be used for funding the acquisition and also for the refinancing of existing debt. Pfizer has also finalized a bridge loan of $22.5 billion from a consortium of banks to fund the deal.

Additionally, Pfizer has also planned to sell some of its animal-health businesses in order to gain antitrust clearance for the acquisition. The company noted that potential asset sales probably would be immaterial, or less than 10% of the company's combined animal-health revenue, which was estimated at roughly $4 billion.

Pfizer and Wyeth together, expect the transaction to close at the end of the third quarter or during the fourth quarter of 2009.

PFE ended Friday's regular trading at $13.55, down 1.60% or $0.22, on a volume of 52.8 million shares on the NYSE. WYE ended Friday's regular trading at $42.74, down 0.21% or $0.09, on a volume of 11.2 million shares on the NYSE.

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