It's The End Of Pfizergan, So Pfizer Will Have To Grow It Alone
This article was originally published in Scrip
Pfizer Inc. was set to reclaim the title of world's top drug maker, dramatically lower its tax rate and access billions in cash held offshore. Only now it's not doing any of that, because the US government got in the way of its plans to merge with Allergan PLC. Instead, investors are wondering what the change in plans mean for Pfizer's future as it moves forward independently.
You may also be interested in...
Chief Operating Officer Albert Bourla will succeed Ian Read as CEO of Pfizer, taking over the top spot at a steady point in the big pharma's evolution. Bourla's near-term challenges will be navigating the loss of Lyrica and the changing US health care dynamics.
Pfizer expects its 2018 tax rate will fall to 17% from 23% in 2017 and the firm could repatriate up to $24bn in cash. The big pharma talked about reinvesting in US manufacturing, employee compensation and returns for shareholders, but investors also want to know how it might impact M&A.
CEO Ian Read indicated the company will wait to see if the US tax system is overhauled before completing any large-scale M&A, even as many investors are anxious to see Pfizer make an acquisition.