WASHINGTON and NEW YORK and London, April 6, 2016 /PRNewswire/ -- Allergan and Pfizer announced they are calling off their proposed merger. MarketResearch.com is pleased to provide further insights into this new development.
In December 2015, the two companies announced the proposed merger at a total enterprise value of approximately $160 billion, which would bring Pfizer back into a therapeutic area of focus of dermatology. It also would have created the world's largest drug company and moved Pfizer-Allergan's headquarters to Ireland, where the corporate tax rate is 18% as opposed to the U.S. corporate tax rate of 35%.
To learn more about what the deal included, read this blog post from industry expert Kalorama Information: http://www.kaloramainformation.com/article/2015-12/Pfizer-Back-Dermatologics-Allergan-Deal
The decision to call off the merger was "by mutual agreement." Pfizer cited the Treasury's new regulations, which were issued on Monday, to make tax inversions less lucrative.
The Treasury Department's latest rules take aim at U.S. companies that move their headquarters overseas to lower their tax bills. According to Treasury Secretary Jacob J. Lew, "We are announcing additional actions to further rein in inversions and reduce the ability of companies to avoid taxes through earnings stripping."
With the discussion of a merger now over, the two drug makers will have to focus on other strategies to boost profits and sales.
To learn more about Allergan and Pfizer, check out all of MarketResearch.com's reports on these companies:
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