1.9 Pfizer, a leading pharmaceutical company, acquired drug maker Pharmacia for $60 billion, betting that size is what mattered in the new millennium. Pfizer was finding it difficult to sustain the double-digit earnings growth demanded by investors due to the skyrocketing costs of developing and commercializing new drugs. Expiring patents on a number of so-called blockbuster drugs intensified pressure to bring new drugs to market. In your judgment, what were the primary motivations for Pfizer’s desire to acquire Pharmacia?

Categorize these in terms of the primary motivations for mergers and acquisitions discussed in this chapter.