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Pfizer Buys Allergan: Spotlight on Tax Inversion
Allergan and Pfizer merged for $160 billion, making the companies most notable for producing Viagra, Botox, and Lipitor, the largest drug maker in the world.
In what’s known as a tax inversion, Pfizer will keep its name and move its headquarters to the current home of Allergan, in Dublin, to lessen their tax burden by an estimated $4B. This acquisition marks the largest instance of companies moving overseas to lower taxes and has reignited the debate on such mergers by Obama and presidential candidates.
Some consumers are concerned that the decreased competition in the market will hike up drug prices, while others argue the merger will have no effect. Many presidential candidates, including Hilary Clinton and Donald Trump, stand against tax inversions, as they say U.S. taxpayers will suffer the most.
