Pfizer and Allergan announce merger

Pfizer and Allergan, two of the biggest names in the pharmaceutical industry, announced that they are merging today as part of a deal valued at approximately $160 billion. 

The companies' boards of directors unanimously approved the deal.

“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,” Ian Read, chairman and chief executive officer of Pfizer, said.

As part of the deal, the two companies will combine under the name, Pfizer plc, while maintaining Allergan's Irish legal domicile. 

“Allergan’s businesses align with and enhance Pfizer’s businesses, creating best-in-class, sustainable, innovative and established businesses that are poised for growth," Read said. "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.”

Stockholders are set to benefit from the merger, with Allergan shareholders receiving 11.3 shares in the new company for each share of Allergan stock. Pfizer stockholders will receive 1 share for each share of Pfizer stock that they hold. 

“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,” Brent Saunders, chief executive officer of Allergan, said. “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 growth therapeutic 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.”