A wave of mergers and acquisitions has shaken the business world in recent years, but one industry that’s been particularly shaken is the pharmaceutical industry.
As of June 30, Pfizer and Merck had already announced $5.7 billion in mergers with biotechnology companies, bringing the total to $18.7bn.
Pfizer, which was founded in 1719 and still employs about 2,300 people, said its merger with AstraZeneca would create a global drug development center in Pittsburgh, Pennsylvania.
Merck, a maker of aspirin and other drugs, said it was also buying AstraZega, a biopharmaceutical company that develops and manufactures medicines to treat diabetes and other chronic diseases.
Both companies have been working to merge since late 2016, but have struggled to reach a deal because of regulatory hurdles, regulatory uncertainty and financial difficulties.
The companies’ combined total value is expected to exceed $100 billion, though the companies’ CEOs have insisted that their merger is all about profits and growth.
Pfizer has said that its combined business would have more than 3,000 pharmaceutical-related jobs in the U.S. and generate an additional $1 trillion in new revenue.
Merks deal will create the world’s largest pharmaceutical development center, said Merck CEO Ian Read in a statement released Thursday.
It will enable Pfizer to expand its manufacturing capabilities in the Americas and Europe and create more than 5,000 new jobs in Pfizer’s home country of the U