If you think pharma had an image problem before you haven’t seen anything yet. Just wait until the media and politicians scrutinize this merger. There will be a lot of misinformation of course, but does anyone really believe that this merger is going to lead to better products or marketing?
In merging with Allergan, which is based in Dublin, Pfizer intends to move its corporate residency to Ireland, where the corporate tax rate is just 12.5 per cent, compared to thirty-five per cent for a company of its size in the United States. Over the next few years, the merger could save Pfizer billions of dollars in taxes and deprive the U.S. Treasury of the same amount.
As the merger takes root people on both sides of the fence are going to take sides and define their territory. Pfizer will tell Allergan people that this the way we do things while Allergan people will push back to a limit as they live in fear of their jobs.
This merger is great news for shareholders and the balance sheet. Patients? Well, it’s not like they were really important is it?