Pfizer seals $160bn Allergan Takeover

Park Sae-jin Reporter() | Posted : November 24, 2015, 14:56 | Updated : November 24, 2015, 14:56

In a historic merger that will create the world's biggest drugmaker, Viagra maker Pfizer Inc and Botox manufacturer Allergan today agreed to merge in a record USD 160 billion deal, creating a drug making behemoth, in the biggest buyout in the healthcare sector.

Pfizer's Chairman and Chief Executive Officer Ian Read said, "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".

Allergan shareholders will receive 11.3 shares in the new company for each of their Allergan shares.

The companies expect that shares of the combined company will be listed on the New York Stock Exchange. The combined company is expected to maintain Allergan's Irish legal domicile and Pfizer will have its global operational headquarters in New York and its principal executive offices in Ireland.

The merged company's board is expected to have 15 directors, consisting of all of Pfizer's 11 current directors and four current directors of Allergan.

Allergan parent company will be the parent company of the combined group, according to the merger agreement Saunders said, "The combination of Allergan and Pfizer is a highly strategic, value-enhancing transaction that brings together two biopharma powerhouses to change lives for the better".

Pfizer's businesses will be significantly enhanced by the addition of a growing revenue stream from Allergan's flagship brands in therapeutic areas such as aesthetics and dermatology, eye care, gastrointestinal, neuroscience and urology.

With the addition of Allergan, Pfizer will enhance its R&D capabilities in both new molecular entities and product line extensions.

By Ruchi Singh
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