Pfizer is merging with Dublin-based Allergan in a US$160bn deal that will create the biggest pharmaceutical company in the world, the companies announced on 23 November 2015.
Pfizer will keep its global headquarters in the United States but will transfer its principal executive team to Ireland — a decision that some business analysts saw as a move by the company to lower its tax liabilities.
The new company will be called Pfizer plc and the deal, which still needs regulatory approval in the European Union as well as the United States, is expected to be completed by the second half of 2016.
“The proposed combination of Pfizer and Allergan will create a leading global pharmaceutical company with the strength to research, discover and deliver more medicines and therapies to more people around the world,” says Pfizer’s chairman and chief executive officer Ian Read.
Brent Saunders, chief executive officer at Allergan, says the merger will allow Allergan to “operate with greater resources at a much bigger scale”.
“Joining forces with Pfizer matches our leading products in seven high-growth therapeutic areas and our robust research and development pipeline with Pfizer’s leading innovative and established businesses, vast global footprint and strength in discovery and development research to create a new biopharma leader,” adds Saunders.
The merger boosts Pfizer’s share of the market in areas including women’s health, anti-infectives, aesthetics, dermatology, eye care, gastrointestinal, neuroscience and urology. The new company will have a combined pipeline of more than 100 mid-to-late stage programmes in development. Allergan also brings its topical formulation, manufacturing and its Anda distribution business to the new company.