Pfizer secures $160bn Allergan deal

Pfizer Inc and Allergan PLC announced on Monday that they will merge to create the world’s biggest drugmaker by sales.

The takeover, which is the largest deal in pharmaceutical history, sees Pfizer agreeing to buy Botox-maker Allergan for $160bn. The American multinational pharmaceutical company may now be able to forgo relatively high US corporate tax rates by relocating its headquarters to Allergan’s headquarters in Dublin.
Allergan shareholders will receive 11.3 shares in the new company for each of their Allergan shares, with Pfizer shareholders receiving one share for each of their Pfizer shares.
Pfizer boss Ian Read, who is set to become chief executive and chairman of the merged company, said: “The proposed combination of Pfizer and Allergan will create a leading global pharmaceutical company with the strength to research, discover and deliver more medicines and more therapies to more people around the world.”
‘Bold action’
Allergan boss Brent Saunders will be positioned as president and chief operating officer. Mr Saunders said the “bold action” would enable Allergan to operate “with greater resources at a much bigger scale”.
Ketan Patel, of EdenTree Investment Management, said the move was the latest in a series of mergers and acquisitions in the pharmaceutical sector.
Mr Patel commented: “The pharmaceutical sector, which has had over $220bn of deals in the first half of 2015 alone, will be buoyed further by the proposed purchase of Allergan by Pfizer, the largest pharma deal ever at $160 billion, surpassing the $116 billion Pfizer paid for Warner Lambert in 2000.”
“The deal is also the biggest [tax] inversion deal.”
The deal is expected to be complete in the second half of 2016, subject to regulatory approval in the US and in Europe. The merged business will be called Pfizer Plc.

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Phill Allen

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An in and outside the (bioprocess) box thinker, fluid management specialist Phill knows a thing or two about keeping pharma liquid logistics flowing.

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