Stories
Slash Boxes
Comments

SoylentNews is people

posted by n1 on Tuesday November 24 2015, @12:16PM   Printer-friendly [Skip to comment(s)]
from the drug-money dept.

Pfizer has agreed to buy Allergan, Plc for $160 billion:

US drugs giant Pfizer has agreed a deal to buy Botox-maker Allergan for $160bn (£106bn), making this the biggest pharmaceuticals deal in history. The merger will create the world's biggest drugmaker, to be called Pfizer.

Allergan shareholders will receive 11.3 shares in the merged company for each of their Allergan shares. Analysts have suggested the deal will allow Pfizer to escape relatively high US corporate tax rates by moving its headquarters to Dublin. Last year, Pfizer made an offer to buy UK drugs group AstraZeneca, which rejected the offer, arguing it undervalued the company.

Aside from Botox, Allergan also makes the Alzheimer's drug Namenda and dry-eye medication Restasis. Pfizer makes that-which-cannot-be-named, nerve pain treatment Lyrica, and pneumonia treatment Prevnar. According to the Wall Street Journal:

Pfizer said it expects to buy back about $5 billion in shares in the first half of next year under an accelerated program.

The merger will create a pharmaceutical behemoth, with top-selling products including Pfizer's Prevnar pneumonia vaccine and Allergan's anti-wrinkle treatment Botox and industry-topping R&D budget. The company's drugs and vaccines would cover a range of diseases, from Alzheimer's to cancer, eye health to rheumatoid arthritis.

The deal brings together two pharmaceutical powerhouses with more than $60 billion in combined sales. Last year, Actavis, which bought Allergan and took its name, had more than $13 billion in sales, while Pfizer had nearly $50 billion in revenue.

[...] Pfizer and Allergan said that after the deal closes, the combined company will decide on splitting into two businesses, one focused on patent-protected products and the other on drugs that have lost their patent protection or are close to losing it. It expects to make that decision by the end of 2018.

Related: Judge Rules Drug Maker Cannot Halt Sales of Alzheimer's Medicine - Drug maker Actavis, Plc tried to replace Namenda with a new, patented form. The company changed its name to Allergan, Plc by June 15, 2015.


Original Submission

Related Stories

Pharma Giant Pfizer Blocked from Tax Evasion 27 comments

AlterNet reports

This week, Pfizer's $160 billion merger with Dublin-based Allergan was scrapped because of new Treasury Department rules to stop such tax dodges [as] tax inversions, [i.e.] reincorporating in countries like Britain, Ireland, or the Netherlands, often merging with a European entity to duck U.S. taxes.

ZeroHedge continues:

As Pfizer-Allergan Sinks, These Inversion Deals Could Be Next

Over the past several years, one of the primary drivers behind [mergers and acquisitions] activity was tax inversions, which, however, as [the] striking announcement [April 4] by the US Treasury made clear, are now effectively over, and with them goes much of the impetus for companies to merge.

And while the Pfizer-Allergan $160 billion merger may be the most notable casualty of the Treasury's decree, there are various other deals working on corporate inversion deals or who have carried out inversions in the past. They are shown in the list below, courtesy of Bloomberg:

Progressive Waste - Waste Connections
Terex - Konecranes
Johnson Controls - Tyco
Mylan - Meda
IHS - Markit

Judge Rules Drug Maker Cannot Halt Sales of Alzheimer’s Medicine 25 comments

Andrew Pollack reports at the NYT that a federal judge has blocked an attempt by the drug company Actavis to halt sales of an older form of its Alzheimer’s disease drug Namenda in favor of a newer version with a longer patent life after New York’s attorney general filed an antitrust lawsuit accusing the drug company of forcing patients to switch to the newer version of the widely used medicine to hinder competition from generic manufacturers. “Today’s decision prevents Actavis from pursuing its scheme to block competition and maintain its high drug prices,” says Eric Schneiderman, the New York attorney general. “Our lawsuit against Actavis sends a clear message: Drug companies cannot illegally prioritize profits over patients.” The case involves a practice called product hopping where brand name manufacturers (“product hoppers”) make a slight alteration to their prescription drug (PDF) and engage in marketing efforts to shift consumers from the old version to the new to insulate the drug company from generic competition for several years. For its part Actavis argued that an injunction would be “unprecedented and extraordinary” and would cause the company “great financial harm, including unnecessary manufacturing and marketing costs.” Namenda has been a big seller. In the last fiscal year, the drug generated $1.5 billion in sales. The drug costs about $300 a month.

This discussion has been archived. No new comments can be posted.
Display Options Threshold/Breakthrough Mark All as Read Mark All as Unread
The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
  • (Score: 2) by c0lo on Tuesday November 24 2015, @01:28PM

    by c0lo (156) Subscriber Badge on Tuesday November 24 2015, @01:28PM (#267444) Journal
    Who cares?... I still have the Revigator my grandfather passed along.
    --
    https://www.youtube.com/watch?v=aoFiw2jMy-0
    • (Score: 2) by Gravis on Tuesday November 24 2015, @01:31PM

      by Gravis (4596) on Tuesday November 24 2015, @01:31PM (#267446)

      The Revigator contained carnotite K2(UO2)2(VO4)2·3H2O. Water stored overnight in a vintage Revigator was analyzed by ICP/MS and radiation detectors. Although the water contained higher levels of radon, the health risk from radiation was low. But the water also contained arsenic, lead, vanadium, and uranium.[3]

      -wikipedia

      sounds delicious. ;)

      • (Score: 2) by c0lo on Tuesday November 24 2015, @01:42PM

        by c0lo (156) Subscriber Badge on Tuesday November 24 2015, @01:42PM (#267457) Journal
        Yeap... especially the lead.
        The ancient Romans knew it makes the wine sweeter, and went [wikipedia.org] crazy [wikipedia.org] for it
        --
        https://www.youtube.com/watch?v=aoFiw2jMy-0
  • (Score: 3, Touché) by Gravis on Tuesday November 24 2015, @01:28PM

    by Gravis (4596) on Tuesday November 24 2015, @01:28PM (#267445)

    since they are consolidating this means they will reduce the price of medications, right?... right?... guys? ;)

    • (Score: 4, Insightful) by moondoctor on Tuesday November 24 2015, @01:43PM

      by moondoctor (2963) on Tuesday November 24 2015, @01:43PM (#267458)

      Whoa buddy, easy with that commie shit. Reducing price would reduce profits which is seriously fucking Un-American. Hopefully this will allow them to have a tighter grip on the market, raise prices astronomically and show the world that the USA can makes money the bestest of anyone.

      • (Score: 4, Informative) by dublet on Tuesday November 24 2015, @02:16PM

        by dublet (2994) on Tuesday November 24 2015, @02:16PM (#267481)

        And actually, this is nothing but a tax dodge. Since by acquiring this Irish company they can relocate their official business address to be Ireland, which has massively lower corporation tax rates.

    • (Score: 2) by mtrycz on Tuesday November 24 2015, @02:15PM

      by mtrycz (60) on Tuesday November 24 2015, @02:15PM (#267478)

      Yes, obviusly.
      That's how capitalism works, no?

      --
      In capitalist America, ads view YOU!
    • (Score: 0) by Anonymous Coward on Tuesday November 24 2015, @02:43PM

      by Anonymous Coward on Tuesday November 24 2015, @02:43PM (#267505)

      The head of Pfizer is an accountant.

  • (Score: 5, Informative) by fadrian on Tuesday November 24 2015, @02:49PM

    by fadrian (3194) on Tuesday November 24 2015, @02:49PM (#267509) Homepage

    How did a summary that long omit the one piece of the story that seems to be the lede in every other one? That this is yet another big tax inversion [wikipedia.org] dodge by a major American company.

    --
    That is all.
    • (Score: 2) by gringer on Tuesday November 24 2015, @05:43PM

      by gringer (962) on Tuesday November 24 2015, @05:43PM (#267612)

      If it wasn't there when you read the summary, it is now:

      Analysts have suggested the deal will allow Pfizer to escape relatively high US corporate tax rates by moving its headquarters to Dublin. Last year, Pfizer made an offer to buy UK drugs group AstraZeneca, which rejected the offer, arguing it undervalued the company.

  • (Score: 0) by Anonymous Coward on Tuesday November 24 2015, @06:10PM

    by Anonymous Coward on Tuesday November 24 2015, @06:10PM (#267623)

    Pfizer makes that-which-cannot-be-named

    We're adults here; we should be able to name Viagr-a without needing to avoid a spam filter.

  • (Score: 0) by Anonymous Coward on Wednesday November 25 2015, @01:38AM

    by Anonymous Coward on Wednesday November 25 2015, @01:38AM (#267809)

    is to block deals like this one.