23 November 2015


Pfizer and Allergan have agreed to combine forces. This 160 Billion USD merger is expected to generate the following results:
  • Creates a new global biopharmaceutical leader with best-in-class innovative and established businesses
  • Enhances revenue and earnings growth profile of innovative and established businesses
  • Broadens innovative pipeline with more than 100 combined mid-to-late stage programs in development
  • Transaction expected to close in the second half of 2016
  • Expect combined Operating Cash Flow in excess of $25 Billion beginning in 2018
  • Increased financial flexibility facilitates continued investment in the United States
  • Preserves opportunity for a potential future separation of innovative and established businesses 
Pfizer Inc. (NYSE: PFE) and Allergan plc (NYSE: AGN) today announced that their boards of directors have unanimously approved, and the companies have entered into, a definitive merger agreement under which Pfizer, a global innovative biopharmaceutical company, will combine with Allergan, a global pharmaceutical company and a leader in a new industry model – Growth Pharma. The stock transaction is valued at $363.63 per Allergan share, for a total enterprise value of approximately $160 billion, based on the closing price of Pfizer common stock of $32.18 on November 20, 2015. The transaction represents more than a 30 percent premium based on Pfizer’s and Allergan’s unaffected share prices as of October 28, 2015. Allergan shareholders will receive 11.3 shares of the combined company for each of their Allergan shares, and Pfizer stockholders will receive one share of the combined company for each of their Pfizer shares
“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,” stated Ian Read, Chairman and Chief Executive Officer, Pfizer. “Allergan’s businesses align with and enhance Pfizer’s businesses, creating best-in-class, sustainable, innovative and established businesses that are poised for growth. Through this combination, Pfizer will have greater financial flexibility that will facilitate our continued discovery and development of new innovative medicines for patients, direct return of capital to shareholders, and continued investment in the United States, while also enabling our pursuit of business development opportunities on a more competitive footing within our industry.” 
“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,” said Brent Saunders, Chief Executive Officer, Allergan. “This bold action is the next chapter in the successful transformation of Allergan allowing us to operate with greater resources at a much bigger scale.  Joining forces with Pfizer matches our leading products in seven high growth therapeutic areas and our robust R&D pipeline with Pfizer’s leading innovative and established businesses, vast global footprint and strength in discovery and development research to create a new biopharma leader.” 
Under the terms of the proposed transaction, the businesses of Pfizer and Allergan will be combined under Allergan plc, and be renamed as “Pfizer plc.” The companies expect that shares of the combined company will be listed on the New York Stock Exchange and trade under the “PFE” ticker.  Upon the closing of the transaction, the combined company is expected to maintain Allergan’s Irish legal domicile.  Pfizer plc will have its global operational headquarters in New York and its principal executive offices in Ireland.

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