Who breached the Lipitor agreement?
Executive Summary
Pfizer files suit against Warner-Lambert Nov. 23 claiming the company breached the Lipitor co-promotion agreement and fraudulently precluded Pfizer from making an acquisition bid for Warner-Lambert. The Warner-Lambert board met the same day Pfizer filed suit and is considering legal action against Pfizer for violating the Lipitor contract. A "stand-still" provision prevented Pfizer from making an unsolicited bid for Warner-Lambert until five years after the termination of the agreement, unless Warner-Lambert solicits a bid from Pfizer or a third party proposes to acquire the company. Warner-Lambert maintains that the proposed AmericanWarner merger with AHP does not involve Warner-Lambert being acquired by a third party because it is a "merger of equals"