Allergan, Pfizer in Preliminary Talks About a Potential TransactionBy
Pfizer and Allergan both have confirmed that the companies are in preliminary friendly discussions in relation to a potential transaction. Neither company added further details.
In a statement, Allergan confirmed that it has been approached by Pfizer Inc. 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 added that it will not comment on speculation regarding the terms of a potential transaction.
Allergan added that under any potential scenario with Pfizer, “Allergan remains strongly committed to complete the proposed divestment of its global generics business to Teva Pharmaceutical Industries Ltd and expects the generics divestiture transaction to close in the first quarter of 2016.”
In July 2015, Teva Pharmaceutical Industries dropped its pursuit of Mylan N.V. and made an approximate $40.5 billion offer to acquire the global generics business of Allergan (the new corporate name of the combined Actavis and Allergan) in a friendly acquisition proposal. The deal, approved by the boards of both companies, would cement Teva's position as the number one global generics company and position Allergan as an almost nearly pure-play specialty pharma company.
Pfizer also emphasized that no agreement has been reached and added that “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 added that “Pfizer will not comment on speculation regarding the terms of a potential transaction. Any further announcement will be made if and when appropriate.”
Pfizer’s possible pursuit of Allergan comes after the recent closing of its $17 billion acquisition of the specialty pharmaceutical Hospira, in a deal that closed in September 2015 and was announced in February 2015. The move added to Pfizer’s sterile injectables and biosimilars portfolios. It followed a protracted effort in 2014 to acquire AstraZeneca, in a $119 billion mega deal, which was rejected by AstraZeneca and which Pfizer eventually decided not to pursue.
For additional insight into a proposed combination of Allergan and Pfizer, see the related story, “A Proposed Combined Allergan and Pfizer: The Implications.”