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Friday, Mar 29, 2024

Pfizer to Acquire Kythera Parent Allergan

Drug giant Pfizer Inc. said Monday that it is purchasing Allergan Plc for approximately $160 billion, which would create the world’s largest drug developer. Earlier this year, Allergan acquired Westlake Village’s Kythera Biopharmaceuticals Inc., the maker of the first FDA-approved injectable to reduce chin fat. This massive deal would relocate Pfizer’s headquarters from New York to Dublin, Ireland, where Allergan is based, and would result in significant tax savings for the company. In light of this news, presidential candidate Hillary Clinton said she will propose new legislation to stop U.S. companies from reincorporating internationally to lower their taxes. The acquisition was structured as Allergan buying Pfizer to avoid certain constraints. However, the merged company will be called Pfizer Plc and will continue to be run by Pfizer’s current Chief Executive Ian Read. Allergan Chief Executive Brent Saunders will become president and chief operating officer of Pfizer Plc. At this point, it is not clear how this merger will affect the companies’ employment. Under the terms of the agreement, Allergan stockholders would receive 11.3 shares of the new company in exchange for their shares, which were valued at $363.63 each. Pfizer shareholders would control about 56 percent of the joint entity. The transaction will expand Pfizer’s offerings, which will include additions like Allergan’s Botox and Kythera’s Kybella. The merger is expected to close in the latter half of 2016, and the combined company is projected to have annual sales of about $64 billion.

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