PFIZER AND
ALLERGAN TO
MERGE
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, in a stock transaction
currently 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 growththerapeutic 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.”
26 Optical Prism | January 2016