US drugmaker Pfizer is to buy rival Wyeth in a deal worth $68bn (£50bn), the two companies have announced.
The merger will allow Pfizer to protect itself from a drop in revenues when its popular drug Lipitor and other products lose patent protection.
It will also help Pfizer diversify its product portfolio, thanks to Wyeth's presence in biotech drugs and vaccines.
The deal could wipe out nearly 20,000 jobs, adding to the wave of job cuts announced on Monday.
Pfizer also said it planned to shut some manufacturing sites.
It also reported a 90% drop in profit to $268m in the fourth quarter, because of a $2.3bn legal settlement.
Pfizer that there would be a total staff reduction of 15% of the combined firms' workforce of 130,000 - implying a total job loss of 19,500.
Combined business
Pfizer, the world's biggest drugs firm, also makes Viagra, while Wyeth produces antidepressant Effexor XR.
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