DUBLIN, April 6, 2016 /PRNewswire/ --
Global pharmaceutical corporation Pfizer Inc. has reportedly terminated its USD 160 billion merger with Allergan Plc, the largest health-care acquisition in the history of the industry. Tough new company rules implemented by the U.S. Treasury Department will limit companies' ability to participate in inversion transactions if they've already been involved in acquisitions within the previous 36 months. Allergan has been involved in a number of acquisitions since 2013, and the Pfizer-Allergan transaction drew criticism from U.S. public officials and presidential candidates from both the Democratic and Republican parties. The global pharmaceutical contract manufacturing market is projected to reach a value of USD 84 billion in 2020, according to a report available from Research and Markets, but the Pfizer-Allergan split could have a negative effect on this estimation.
Pfizer will be required to pay Allergan a USD 400 million fee for expenses related to the transaction, which would have given the New-York based Pfizer a lower tax rate due to its tax address relocation to Dublin, where Allergan has offices. The purchase would have also resulted in the addition of Allergan medications to Pfizer's speciality drug unit.
The pharmaceuticals, medicines, supplements and drug manufacturing industry in the U.S. will be worth USD 329.4 billion by 2022, as forecast in an industry report. The value could be higher due to Pfizer's inability to obtain a tax address outside the United States.
The speciality drug distribution market is estimated to grow at a CAGR of 18% by 2020, as forecasts in a market report, but this value would have likely been higher if the Pfizer-Allergan deal had been successful.
About Research and Markets
Research and Markets is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
Research and Markets
Laura Wood, Senior Manager
For E.S.T Office Hours Call +1-917-300-0470
For U.S./CAN Toll Free Call +1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
SOURCE Research and Markets