Actionable news
0
All posts from Actionable news
Actionable news in PFE: PFIZER Inc,

Pfizer, Allergan Considering Combining

Drug makers Pfizer Inc. PFE 1.31 % and Allergan PLC are considering combining, in what would be a blockbuster merger capping off a torrid stretch for health care and other takeovers.

Pfizer recently approached Allergan about a deal, according to people familiar with the matter, with one of them adding that the process is early and may not yield an agreement. Other details of the talks are unclear.

Allergan currently has a market capitalization of $112.5 billion, meaning that a deal for the company could be the biggest announced takeover in a year that is already on pace to be the busiest ever for mergers and acquisitions.

There are big obstacles to overcome, however. One could be price. Pfizer Chief Executive Ian Read, who has been on an acquisition trail of late, said during an earnings conference call on Tuesday that he had noticed falling share prices for rival drug companies. But, he said, “I’m not sure there has been a readjustment in what the investors and leaders of those companies believe those companies are worth in a transactional situation.”

Other issues could include the extent to which Pfizer would want to lay off employees and close facilities; the fate of Allergan CEO Brent Saunders; and the general makeup of a combined company’s management team, the person said.

If a deal were to be struck, it would add...


More