Saturday, November 28, 2015

Merger of Pfizer and Allergan

Pfizer, a world-famous pharmaceutical company, decided to consolidate Allergan. The deal will cost 150 billion USD. The two companies have already agreed to the consolidation, and the biggest pharma in the world will be born.

International Business Times: Pfizer and Allergan agree on $160bn deal to create world's biggest pharma firm

Pfizer is an American company. But it will be able to be administered by Irish taxation rule because Allergan’s headquarter is in Dublin. It will benefit to Pfizer.

However, it is not the reason for this combination, although it is common for international companies to be seeking for tax havens. Pfizer made a large amount of profit from Viagra.

But it has not developed new innovative drugs for a decade. Instead, Pfizer bought several companies accompanied with the patents of newly drugs they had developed. Establishing a new drug needs the astronomical amount of money. The Pfizer model seems less risky than venturing for an innovative drug on its own.

Nowadays, even highly recognized companies are struggling to stabilize their financial status. Such a merger of big pharmaceutical companies is not rare at all.

Pfizer is selling some psychotropic drugs such as Solanax, a benzodiazepine-type anxiolytic. I owe my clinical practice partially to Pfizer, though not meaning any direct interest. Therefore, I hope it will get the further achievement, for the benefit of the patients.

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