After a weekend of frenzied speculation, US pharma giant Pfizer (NYSE: PFE) confirmed that it has agreed to acquire Botox maker Allergan (NYSE: AGN) before markets opened, in an even higher offer than had been expected, and will create the world’s largest pharmaceutical company.
The two drugmakers announced that their boards of directors have unanimously approved, and the companies have entered into, a definitive merger agreement, in a stock transaction currently valued at $363.63 per Allergan share, for a total enterprise value of around $160 billion, based on the closing price of Pfizer common stock of $32.18 on November 20, 2015. This exceeds the $150 billion deal that had been widely anticipated.
Following completion of the transaction, which is expected in the second half of 2016, Pfizer stockholders will hold about 56% of the combined company and Allergan shareholders approximately 44% of the combined company on a fully diluted basis.
This article is accessible to registered users, to continue reading please register for free. A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.
Login to your accountTry before you buy
7 day trial access
Become a subscriber
Or £77 per month
The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed
Chairman, Sanofi Aventis UK
Copyright © The Pharma Letter 2024 | Headless Content Management with Blaze