Allergan in business combination discussions with Pfizer

Allergan confirmed that it has been approached by Pfizer and is in preliminary friendly discussions regarding a potential business combination transaction. Allergan stated that no agreement has been reached and there can be no certainty that these discussions will lead to a transaction, or as to the terms on which a transaction, if any, might be agreed. The company will not comment on speculation regarding the terms of a potential transaction. Under any potential scenario with Pfizer, Allergan remains strongly committed to complete the proposed divestment of its global generics business to Teva Pharmaceutical Industries and expects the generics divestiture transaction to close in the first quarter of 2016. A further announcement will be made when appropriate. According to the Financial Times, buying Allergan, best known as the maker of Botox, would allow Pfizer to complete a long-coveted ‘tax inversion’ that would cut its US corporation tax bill. Allergan, based in Ireland, paid an effective tax rate of 4.8% last year versus Pfizer’s 25.5%.