gsK/pfizer:not prescribed

GlaxoSmithKline is reportedly preparing to bid a whopping $15bn or more for Pfizer’s non-prescription drug business according to media reports. This would be a strategic and financial mistake for the UK drug maker. Such a deal would be value destructive. Roche sold similar assets two years ago for a multiple of 2.6 times trailing sales. A bid of $15bn would value Pfizer’s business at 3.8 times trailing sales. This is equivalent to a premium of $5bn. Glaxo would have to find synergies equal to 1...