November 27, 2015
Pfizer- Allergan Deal Moves Pfizer HQ to Dublin
Drug company Pfizer announced on Monday that it would buy rival Allergan in a deal worth $160 billion, creating the world’s largest drug maker. The takeover will see Pfizer move its corporate headquarters to Dublin, Ireland – slashing its U.S. tax bill and sending additional corporate tax revenue Ireland’s way. The agreement comes just four days after the White House stepped up its attack on corporate tax inversions, transactions in which a U.S. company reincorporates in a lower-tax nation in a bid to cut its future tax bills while leaving domestic operations in place.
Pfizer’s drugs include Viagra and the cholesterol-lowering drug Lipitor, while Allergan’s brands include the cosmetic medication Botox. For the U.S. Treasury, it would be the most costly instance in history of an American company re-incorporating overseas to lower its taxes. President Obama, who has called such inversion deals “unpatriotic,” has tried to crack down on the practice.
“We need to keep pharmaceutical company executives from raiding the American Treasury,” said Alliance Secretary-Treasurer Joseph Peters, Jr. “Rather than helping drug company executives pad their profits with deals like the Trans Pacific Partnership, Congress should be addressing problems with the tax code that hurt the U.S economy and consumers.”