Ah. A business discussion here at HealingWell. Thanks Swim, but this may be where I babble.
Pfizer also makes another drug we use here in this forum...Viagra.
I have worked for a major corporation (N.E.C. america, F.o.r.b.e.s. top 50) for 16 years. We sold technology products to the world. My maket is PBX's and related telecommunications products mainly in the Las Vegas area. I was the engineering designer for over 50% of the Las Vegas strip hotels. I also sold the products. What happened here was that six major gaming companies merged in recent years forming three major companies. This consolidation effort only worked for the bottom line of those companies.
> It did not lower hotel rates.
> It did not lower restaurant prices.
What it did was lower the cost of doing business for these "mega" gaming companies. I guess that's good for you if you work there, no wait, if you leave one comapny you have less options in the future. Nope just the execs and investors made out on this mass consolidation. It left my company, a reputed vendor, out in the "cut our profit margins to try to keep business approach". I watched us go from an integral part of the Las Vegas technology scene, to stumbling over decisions and revolving the front door in keystone cop fashion. It wasn't just my company it was our competition as well. We (the vendors) were strapped by larger customers who leveraged their size against our small profit margins. I was able to watch a wirlwind of management decisions that did not address this in a timely manner, and thus N.E.C., nor it's competition are doing particularly well.
I found a counter niche for me that looks very promising, and has low overhead. I will be able to snag a good chunk of business. I left my company in November and I formed a new company, an LLC with my wife as the majority owner. We qualify for the diversity programs at these new companies as we are a small Nevada company that is female majority owned. We are doing quite well in our early stages. Heck of alot better than my early PC news.
OK this is where it gets rough...my opinion.
These investors will make out quite well in this merger. The consumer will not do nearly as well, if well at all. Don't look for a sudden drop in prices on these products. Don't think it will get you a pay raise if you work there, you will for some but not the overwelming majority. For the companies that have a major portion of their business supplying Pfizer, sell your stocks now and buy the stocks of those that sell primarely to J&J, you know that since J&J is the big boy now that their team members will stick with what they have been comfortable with in the past, and they will likely have larger buying power. And one more thing, as a consumer, remember that compitition is the best thing for research and development. Don't be afraid to buy the lessor competing product if it can have a positive effect by keeping J&J honest. I'm all for mergers if they can form a strong competitive scene and attempts to fit the affected communities. That does not happen with any regularity at all.
You had to get me going, Swim...