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More pharma M&A to come?

November 25, 2015 / GARRY WHITE

Viagra maker Pfizer announced on Monday that it would purchase Allergan, the Irish maker of Botox, for about $160bn – the biggest deal ever in the healthcare sector.Could more mega-mergers be in prospect? As part of the proposed deal, Pfizer will move its headquarters to Ireland, in a so-called “tax inversion” deal. Inversion is a process under which a company buys a business in a lower tax jurisdiction and moves its headquarters offshore. Last year, US group AbbVie attempted a similar move, taking a tilt at Shire. The deal was primarily motivated by tax reasons. However, it was called off as the US government tightened regulations on such deals and increased political pressure on companies that propose to make such a move, branding them “unpatriotic”.