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Market Update

Fund Managers Hope Pfizer Deal Lifts Drug Stocks

Mutual-fund managers were rooting for Pfizer to prevail in the takeover battle; they got what they wanted and now say the new company will be a must-own stock.

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Mutual-fund managers are hoping Pfizer's (PFE) $90 billion merger with Warner-Lambert (WLA) will be just what the doctor ordered to cure the lingering malaise of pharmaceutical stocks.

Pfizer and American Home Products (AHP) launched competing bids for Warner-Lambert on the same day three months ago, beginning a long takeover battle. Stock pickers interviewed Monday said they had hoped Pfizer would win. "We're happy this is a done deal," said Peter Wen, comanager of Warburg Pincus Health Sciences (WPHSX), which has nearly 7% of its $46 million in assets invested in Warner-Lambert.

Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.