Pfizer, Allergan in talks on merger

(Reuters) — Allergan (NYSE: AGN) and Pfizer (NYSE:PFE) today confirmed that they’re in preliminary, friendly talks on a potential merger, a deal that would create the world’s largest drugmaker. Both Pfizer and Allergan said no agreement has been reached and declined to discuss any terms that might lead to such a tie-up. Allergan shares jumped 8.2% to $310.92 apiece today, while Pfizer was off almost 1% to $35.12. Pfizer CEO Ian Read earlier today said he’s open to any moves that produce the best long-term value for the company. Speaking at a Wall Street Journal event, Read said he was looking at various growth strategies, including a deal, “if that would add value to shareholders.” “Or we could sit tight or we could do a split. Or we could do a business development deal and then do a split, whatever produces the best long-term value,” Read said. Pfizer is expected to decide by late next year whether to sell or spin off its older off-patent products unit to pare the business down and focus on innovative, patent-protected medicines. Allergan, the product of a recent merger with generic drugmaker Actavis, is itself in the process of selling a large portfolio of generic medicines to Teva Pharmaceutical Industries (NYSE:TEVA) for $40.5 billion. That deal is expected to close in the 1st quarter of 2016. A purchase of Dublin-based Allergan, with a market value of more than $113 billion, would be the biggest in Pfizer’s long hi...
Source: Mass Device - Category: Medical Equipment Authors: Tags: Mergers & Acquisitions Pharmaceuticals Allergan Inc. Pfizer Inc. Source Type: news