Recently, Pfizer and Allergan announced plans to merge. It would be led by Pfizer and to be domiciled in Ireland with executive offices too in the country, but the global operating headquarters would be in NY.
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The companies estimated the merger would increase earnings per share by 10 percent, excluding special items, in 2019 and add by a high-teens percentage rate in 2020.
“This proposed merger, and so-called inversions by other companies, will leave USA taxpayers holding the bag”, she said in a written statement released Monday by her campaign.
THE CONCLUSION of a record-breaking deal between pharmaceutical companies Pfizer and Allergan has been labelled a “disaster” by US Democrat presidential candidates Bernie Sanders and Hillary Clinton amid fears it could resurrect the prospect of tax inversions. Just last Thursday, the Treasury department announced further steps to block companies from undertaking transactions based on “a desire to shift the tax residence of a parent entity to a low-tax jurisdiction simply to avoid United States taxes”. Pfizer is best known for its production of Viagra, an erectile dysfunction pill; whereas Allergan is best known for Botox. “Congress also must pass real tax reform that demands that profitable corporations pay their fair share of taxes”.
For 166-year-old Pfizer, Allergan would be the fourth huge acquisition over the last 15 years – one for each of the last 4 CEOs – following purchases of Warner-Lambert, Pharmacia and Wyeth.
Real-estate mogul Donald Trump isn’t happy with Pfizer and Allergan’s Monday announcement that the two companies would merge to form a corporate drug-making behemoth.
The deal will enable the combined company to pour around $9 billion a year into research on new treatments, Read said in an interview.
CEO of Pfizer, Ian Read, is going to hold the position for the combined entity as well while the CEO of Allergan, Brent Saunders is going to become COO and President. Still, investors had been hoping Pfizer would sell off the lower-margin business in 2017, a move now put off by the time required to integrate Allergan, Pfizer said. Generic competition is expected to cut Pfizer’s sales by $28 billion from 2010 through next year which is being seen as a huge negative.
As a result of the combination with Allergan and subsequent integration of the two companies, Pfizer now expects to make a decision about a potential separation of the combined company’s innovative and established businesses by no later than the end of 2018.
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“Pfizer built their business on the back of our research and development tax incentives, our federally supported medical research, our skilled workforce, and our infrastructure”, said Democratic Representative Rosa DeLauro in a statement.
