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Pfizer is analyzing the costs associated with acquiring a biopharmaceutical startup. The acquisition cost is $2.5 billion, with integration and development costs estimated at $500

Pfizer is analyzing the costs associated with acquiring a biopharmaceutical startup. The acquisition cost is $2.5 billion, with integration and development costs estimated at $500 million. Pfizer expects the startup to generate annual revenue of $1 billion post-acquisition.

Requirements:

  • Calculate the total acquisition, integration, and development costs.
  • Determine the payback period and ROI for the acquisition.
  • Analyze the expected revenue and growth potential from the startup.
  • Discuss the strategic fit of the startup in Pfizer's product portfolio.
  • Evaluate the financial implications of the acquisition on Pfizer's financial statements.
  • Recommend integration strategies to maximize synergies and accelerate growth.

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