Original Story: detroitnews.com
Pfizer and Allergan are joining in the biggest buyout of the year, a $160 billion stock deal that will create the world’s largest drugmaker. A Boston M&A lawyer provides professional legal counsel and extensive experience in many aspects of mergers, acquisitions, and divestitures.
It’s also the largest so-called inversion, where an American corporation combines with a company headquartered in a country with a lower corporate tax rate, saving potentially millions each year in U.S. taxes.
Pfizer, which makes the cholesterol fighter Lipitor, will keep its global operational headquarters in New York. But the drugmaker will combine with Botox-maker Allergan as a company that will be called Pfizer Plc. That company would have its legal domicile and principal executive offices in Ireland.
The combination will essentially be Pfizer “but with a lower tax rate,” wrote Bernstein analyst Dr. Tim Anderson. He said he expects a tax rate of about 18 percent after the deal, which compares to Pfizer’s current rate of 25 percent. An Istanbul M&A lawyer offers full legal services on a wide range of corporate M&A transactions.
Several U.S. drugmakers have performed inversions through acquisitions in the past several years, in part to escape higher U.S. corporate tax rates. The list of companies includes Allergan, which still runs much of its operation out of New Jersey, and the generic drugmaker Mylan.
Last year, Pfizer unsuccessfully tried to buy British drugmaker AstraZeneca Plc in a roughly $118 billion deal that would have involved an inversion. Those talks eventually collapsed when the two sides couldn’t agree on a price.
U.S. efforts to limit inversions have so far proven ineffectual.
Last year, the U.S. Treasury Department initiated new regulations designed to curb the financial benefits of inversions. The rules bar certain techniques that companies use to lower their tax bills and tighten ownership requirements.
The issue has become political heading into the presidential election.
Billionaire investor Carl Icahn recently announced that he was setting up a $150 million super PAC bent on revising U.S. corporate tax law and ending the practice, ratcheting up political pressure even more. A Tokyo M&A lawyer has abundant experience in organizational restructures and M&A.
Aside from a lower tax bill, the Allergan acquisition would give Pfizer brand-name medicines for eye conditions, infections and heart disease. They would join Pfizer’s extensive portfolio of vaccines and drugs for cancer, pain, erectile dysfunction and other conditions.
The deal would enable Pfizer, the world’s second-biggest drugmaker by revenue, to surpass Switzerland’s Novartis AG and regain the industry’s top spot.
Pfizer has done three sizeable deals since 2000 to boost revenue, and the Allergan offer comes as generic competition to blockbuster drugs like Lipitor is expected to cut Pfizer’s sales by $28 billion from 2010 through next year.
Allergan shareholders will receive 11.3 shares of the combined company for each of their shares, while Pfizer stockholders will get one share of the combined company. The deal is valued at $363.63 per Allergan share.
The Allergan deal is expected to close in the second half of 2016. Pfizer stock owners will hold an approximately 56 percent stake in the combined company, while Allergan shareholders will own the remaining 44 percent.
Pfizer Inc. Chairman and CEO Ian Read will serve in the same roles with the combined company while Allergan Plc. leader Brent Saunders will become president and chief operating officer. All 11 of Pfizer’s directors will serve on the board of the combined business, along with four Allergan directors.
Showing posts with label Allergan. Show all posts
Showing posts with label Allergan. Show all posts
Wednesday, December 2, 2015
Thursday, July 30, 2015
ALLERGAN SELLS GENERIC DRUG UNIT TO ISRAEL'S TEVA FOR $40.5 BILLION
Original Story: latimes.com
Pharmaceutical company Allergan has agreed to sell its generic drug unit to Teva Pharmaceutical Industries of Israel for $40.5 billion, a move that will enable Allergan to focus on branded drugs, including blockbuster wrinkle treatment Botox.
The acquisition is the latest in a series of pharmaceutical industry mergers and acquisitions, and the latest reconfiguration of Actavis, the Irish drug company that bought Allergan in November and took over its name. An Amarillo M&A lawyer is knowledgeable in all areas of M&A and general acquisitions law, including but not limited to leveraged buyouts, company reorganizations, and mergers and acquisitions.
On Monday, the new Allergan agreed to sell its generic brand division to Teva. Allergan will receive $33.75 billion in cash and $6.75 billion in Teva stock. Analysts said it was the largest acquisition ever by an Israeli company.
Teva is the world's largest maker of generic drugs. The company said the acquisition would provide patients with more access to affordable medicines.
"Our acquisition of Allergan Generics ... will accelerate our ability to build an exceptional portfolio of products, both in generics and specialty as well as the intersection of the two," Teva Chief Executive Erez Vigodman said in a statement. An Aiken M&A lawyer is following this story closely.
Brent Saunders, chief executive of Allergan, said in a statement that the sale would help his company enhance its "global-branded pharmaceutical business and strengthen our financial position."
"While we were not actively seeking a buyer for our generics business, Teva presented an offer at a very compelling valuation that reflects and recognizes the significant value that our global generics team has generated in creating and managing a world-class generics business," Saunders said.
In addition to Botox, Allergan retains Restasis, a treatment for chronic dry eye that generated $1.1 billion of sales last year, as well as Juvederm, another wrinkle treatment, and a host of other branded medicines.
In November, Actavis agreed to pay $66 billion to acquire Allergan, the Irvine-based maker of Botox and a line of ophthalmic medicines. The companies combined under the Allergan name and retained Actavis' headquarters in Dublin, Ireland.
The new Allergan has U.S. headquarters in New Jersey and continues to have a presence in Irvine. A Roseland M&A lawyer is reviewing the details of this case.
Teva's leadership has been saying for months that it believes some of the biggest generic drug companies should combine to save money and become more efficient.
A big deal like this would enable Teva to improve its profitability by cutting jobs and other overlapping costs from the combined businesses. The deal also would increase its leverage in negotiating drug prices in key markets like the United States, where insurers, employers and other payers are pushing to hold down rising healthcare costs that have outpaced inflation for years.
Pharmaceutical company Allergan has agreed to sell its generic drug unit to Teva Pharmaceutical Industries of Israel for $40.5 billion, a move that will enable Allergan to focus on branded drugs, including blockbuster wrinkle treatment Botox.
The acquisition is the latest in a series of pharmaceutical industry mergers and acquisitions, and the latest reconfiguration of Actavis, the Irish drug company that bought Allergan in November and took over its name. An Amarillo M&A lawyer is knowledgeable in all areas of M&A and general acquisitions law, including but not limited to leveraged buyouts, company reorganizations, and mergers and acquisitions.
On Monday, the new Allergan agreed to sell its generic brand division to Teva. Allergan will receive $33.75 billion in cash and $6.75 billion in Teva stock. Analysts said it was the largest acquisition ever by an Israeli company.
Teva is the world's largest maker of generic drugs. The company said the acquisition would provide patients with more access to affordable medicines.
"Our acquisition of Allergan Generics ... will accelerate our ability to build an exceptional portfolio of products, both in generics and specialty as well as the intersection of the two," Teva Chief Executive Erez Vigodman said in a statement. An Aiken M&A lawyer is following this story closely.
Brent Saunders, chief executive of Allergan, said in a statement that the sale would help his company enhance its "global-branded pharmaceutical business and strengthen our financial position."
"While we were not actively seeking a buyer for our generics business, Teva presented an offer at a very compelling valuation that reflects and recognizes the significant value that our global generics team has generated in creating and managing a world-class generics business," Saunders said.
In addition to Botox, Allergan retains Restasis, a treatment for chronic dry eye that generated $1.1 billion of sales last year, as well as Juvederm, another wrinkle treatment, and a host of other branded medicines.
In November, Actavis agreed to pay $66 billion to acquire Allergan, the Irvine-based maker of Botox and a line of ophthalmic medicines. The companies combined under the Allergan name and retained Actavis' headquarters in Dublin, Ireland.
The new Allergan has U.S. headquarters in New Jersey and continues to have a presence in Irvine. A Roseland M&A lawyer is reviewing the details of this case.
Teva's leadership has been saying for months that it believes some of the biggest generic drug companies should combine to save money and become more efficient.
A big deal like this would enable Teva to improve its profitability by cutting jobs and other overlapping costs from the combined businesses. The deal also would increase its leverage in negotiating drug prices in key markets like the United States, where insurers, employers and other payers are pushing to hold down rising healthcare costs that have outpaced inflation for years.
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