Monday, 23 November 2015

Pfizer to buy Allergan

The biggest deal of pharmaceutical is here and Pfizer Inc. will become Pfizer Plc. The maker of Viagra and Lipitor has struck a deal to buy Botox Maker Allergan Plc. in a transaction valued at about $160 Million. The complex deal, the biggest ever in the healthcare sector, will allow Pfizer to shift its legal base to Ireland in a so called “inversion” that would reduce its tax rate.
New York based Pfizer and Allergan, headquartered in Ireland said Allergan shareholders will receive 113 shares in the combined company for each share held. The deal values Allergan shares at $363.63 each. Pfizer stockholders will have the option of receiving one share of the combined company for each of their Pfizer shares or receive cash. Aggregate amount of cash to be paid is not less than $6 Billion or more than $12 Billion.

Apart from male libido drug Viagra and cholesterol drug Lipitor, Pfizer major drugs include nerve pain treatment Lyrica and Prevnar, a treatment for Pneumonia. Allergan best known for its anti-wrinkle treatment Botox also makes Alzheimer drug Namenda and dry eye medication Restasis. The business of Pfizer and Allergan will be combined under Allergan Plc., which will be renamed Pfizer Plc.

No comments: