Pfizer Inc, the pharmaceutical giant, is reportedly in talks for a merger with Allergan Plc. Allergan is famous for its Botox products and is valued at about USD113 billion.
The consolidation will likely push Pfizer (new valuation at USD330 billion, way ahead of its rival Johnson & Johnson on USD278 billion. Global pharmaceutical market is seeing a wave of consolidation since 2014. Pfizer recently made an attempt to merge with Sweden-based group AstraZeneca Plc.
“When you’re the size of Pfizer, an acquisition like this may be the only choice you have in order to be able to move the needle for sequential growth…so the question now becomes, if not this, what, and if not now, when?” said WBB Securities’ analyst Stephen Brozak, reports Reuters.
Both Pfizer and Allergan have declined to comment on the merger speculation.
The deal, If it happens at all, will give Pfizer a much-needed push in the drug segment. Allergan has rights to antiwrinkle treatment Botox, dry-eye treatment Restasis and other medications. Pfizer recently bought Hospira Inc for USD16 billion to boost its off-patent drug segment, reports Wall Street Journal.
If a deal were to be struck, it would add and other popular Allergan drugs to Pfizer’s arsenal of patent-protected medicines. Pfizer has been trying to bolster its branded-drug portfolio after recently completing a $16 billion acquisition of Hospira Inc. that boosted its off-patent drug business.