NEW YORK ( CNN ) -- Pfizer is near a deal to buy rival drugmaker Wyeth for $ 68 billion , according to news reports late Sunday citing people familiar with the deal . Pfizer 's world headquarters is in New York . A deal was imminent and likely to be announced Monday , The Wall Street Journal and The New York Times reported . `` It is our policy not to comment on rumor or speculation , '' said Michael Lampe , a Wyeth representative . Pfizer was not immediately available for comment . Pfizer , the world 's leading drugmaker in terms of sales , has been in talks to buy Wyeth . Pfizer 's stock slipped 1 percent on the news Friday , while Wyeth gained about 8 percent . On January 13 Pfizer said it was cutting up to 8 percent of its R & D staff , about 800 jobs . Spokesman Raymond Kerins said that was to `` raise productivity . '' But analysts say Pfizer is clearly trying to beef up its drug pipeline through an acquisition , adding that the company seems to have given up on its own R & D staff coming up with a blockbuster to replace Lipitor . This cholesterol-cutting drug peaked in 2006 with nearly $ 13 billion in annual sales but will lose its patent protection in 2011 , when generic versions will become available . Les Funtleyder , pharma analyst for Miller Tabak , said Pfizer is `` not feeling that they 're getting the efficiency out of their R & D unit . '' He said Pfizer would probably rather do a deal with Wyeth over other competitors , because there is less overlap in the companies ' pipelines . Funtleyder said Pfizer already has a diabetes franchise , which would overlap with Eli Lilly & Co. and Bristol-Myers Squibb , both of which also focus on diabetes treatments . Pfizer probably has its eyes on Wyeth 's Alzheimer 's drug pipeline , he said . But he cautions that a merger wo n't be a success unless Wyeth 's pipeline is successful , which remains to be seen , he said . `` If Wyeth comes out with an Alzheimer 's drug that works , then the deal works , '' he said . Pfizer is probably also focused on Wyeth 's blockbuster children 's vaccine Prevnar , as well as its experimental biotech drugs , said Michael Krensavage of Krensavage Asset Management . Sales of Prevnar , which combats meningitis and blood infections , jumped 12 percent in the first nine months of 2008 compared with the same period the prior year , to $ 2.1 billion . If a deal does go through , Funtleyder warns , Wyeth staffers should brace for layoffs . `` I can say with pretty good confidence that this is going to lead to some head count reduction , '' he said .
`` It is our policy not to comment on rumor or speculation , '' Wyeth rep says . R & D was not immediately available for comment . Pfizer said January 13 it was cutting 12 percent , or about 800 jobs , of its Pfizer staff .