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Pfizer Announces Merger Termination With Allergan; Will Pay $150 Million Breakup Fee

Pfizer Announces Merger Termination With Allergan; Will Pay $150 Million Breakup Fee

Pfizer Inc. (NYSE: PFE) announced Wednesday morning it has terminated its merger agreement with Allergan plc (NYSE: AGN) following the U.S. Department of Treasury's tax inversion announcement on Monday.

Pfizer noted the decision to terminate the merger agreement was mutual. As part of the agreement, Pfizer will pay Allergan $150 million as a breakup fee.

"Pfizer approached this transaction from a position of strength and viewed the potential combination as an accelerator of existing strategies," said Ian Read, Pfizer's Chairman and Chief Executive Officer. "We remain focused on continuing to enhance the value of our innovative and established businesses. Our most recent product launches, including Prevnar 13 in Adults, Ibrance, Eliquis and Xeljanz, have been well-received in the market, and we believe our late stage pipeline has several attractive commercial opportunities with high potential across several therapeutic areas. We also maintain the financial strength and flexibility to pursue attractive business development and other shareholder friendly capital allocation opportunities."

Related Link: A Veteran Trader Took One Of The Worst Losses Of His Career Monday: Here's What He Learned.

In a separate press release, Allergan reiterated its standalone growth profile and strategy.

"While we are disappointed that the Pfizer transaction will no longer move forward, Allergan is poised to deliver strong, sustainable growth built on a set of powerful attributes. Leading therapeutic franchises with strong brands across seven therapeutic areas provide the foundation for continued strong growth in 2016 and beyond. Our pipeline is one of the strongest in the industry, loaded with 70 mid-to-late stage programs including 14 expected approvals and 16 regulatory submissions in 2016 alone," said Brent Saunders, CEO and President.

Shares of Pfizer were higher by 0.70 percent early Wednesday morning, while Allergan was trading lower by 0.43 percent.

Posted-In: Brent Saunders Ian Read Pfizer Allergan Merger Tax Inversion DealsM&A News Legal Best of Benzinga


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