Pfizer and Allergan Make History with a $160-Billion Merger

23 November, 2015, by ClinCaptureTeam

U.S. pharmaceutical giant Pfizer and Irish rival Allergan announced a record-breaking $160-billion merger today- their transaction being the largest healthcare industry deal ever. Opponents say the companies are taking advantage of a controversial tax-saving strategy.

The companies’ say their combined entity would have more than $25 billion in operating cash flow by 2018. Under the terms of the proposed transaction, the businesses of Pfizer and Allergan will be combined under Allergan PLC, which will be renamed “Pfizer PLC.” This has officially created the world’s largest pharmaceutical company, combining the makers of drugs such as Viagra, Lipitor and Botox, to name a few.

The combined company is expected to maintain Allergan’s Irish location. Pfizer plc will have its global operational headquarters in New York and its principal executive offices in Ireland.

According to the press release, Pfizer’s innovative businesses will be significantly enhanced by the addition of a growing revenue stream from Allergan’s durable and innovative brands in therapeutic areas such as aesthetics and dermatology, eye care, gastrointestinal, neuroscience and urology. The combined company is said to benefit from a broader innovative portfolio of leading medicines in key categories and a platform for sustainable growth with diversified payer groups. With the addition of Allergan, Pfizer will enhance its R&D capabilities in both new molecular entities and product line extensions.

A combined pipeline of over a hundred drug development programs and an even larger pool of R&D and manufacturing resources are expected to propel the new pharmaceutical giant’s growth even further in the long run.