Lipitor Trial Set for April, Impacting Merger Deal Between Warner-Lambert and Pfizer

Warner-Lambert's shareholders may gain clarity on the proposed merger with American Home Products before they vote on May 15, thanks to a trial scheduled for April 10 in the Delaware Court of Chancery. The dispute revolves around the blockbuster cholesterol-fighting drug Lipitor, with Warner-Lambert seeking to terminate its deal with Pfizer, which has been co-promoting Lipitor and sharing revenues. Lipitor's annual sales have exceeded $4 billion, and its projected sales are expected to reach over $10 billion in the next few years.

Key Takeaways:

• The Delaware Court of Chancery has scheduled a trial for April 10 to resolve the dispute over Lipitor between Warner-Lambert and Pfizer.
• The trial is crucial for the merger deal between Warner-Lambert and American Home Products, with shareholders voting on May 15.
• Warner-Lambert has filed a suit seeking to terminate its deal with Pfizer, arguing that this would significantly enhance shareholder value.
• Pfizer counters that its marketing expertise is crucial for Lipitor's continued success and argues that termination of the deal would harm Warner-Lambert's shareholders.
• Industry observers see the Lipitor dispute as the critical battle in the merger dispute between Warner-Lambert and Pfizer.
• Warner-Lambert has the right to start cutting Pfizer out of the Lipitor deal in 2001.

Statistics:

• Lipitor's annual sales exceed $4 billion.
• Lipitor is expected to reach over $10 billion in sales within the next few years.
• The merger vote between Warner-Lambert and American Home Products is scheduled for May 15.
• The trial date for the Lipitor dispute is April 10.

Sources:

• Warner-Lambert
• Pfizer
• New York News, Adrian Michaels (author.not specified)