Pfizer and Allergan to announce merger
Pfizer and Allergan agreed a deal worth over $150bn (£99.3bn) to merge their two companies and create the world´s largest pharmaceuticals outfit, the Wall Street Journal reported.
Allergan Inc.
$240.22
11:00 06/04/15
Dow Jones I.A.
42,052.19
04:30 15/10/20
Pfizer Inc.
$28.09
11:10 01/11/24
An agreement was reached on Sunday and might be announced as soon as Monday, according to people familiar with the matter cited by the newspaper.
The new company would have combined sales of over $60bn (£39.7bn) with products ranging from Pfizer´s Prevnar vaccine for pneumonia to Allergan´s iconic Botox.
The transaction was also expected to help lower Pfizer´s tax bill to below 20% from approximately 25% at present and result in extra resources that can be funelled into research and development.
As well, Dublin-based Allergan believed it could launch a dozen new treatments - including for macular degeneration and depression - over the coming years that could tack on over $15bn (£9.9bn) to the company´s sales.
The deal was expected to take between seven to nine months to close once Allergan had completed the sale of its generics business to Teva Pharmaceuticals for over $40bn (£26.5bn).