A series of agreed or proposed drug company deals may herald a new era of acquisitions not seen since last decade as pharmaceutical companies improve their best businesses and exit weaker ones. Novartis and GlaxoSmithKline agreed to trade more than $20 billion worth of assets, boosting Novartis' cancer-drug business and Glaxo's vaccines business. Valeant Pharmaceuticals made a $47 billion unsolicited offer for Allergan Inc, the maker of Botox, to boost its skin care business. Reports that Pfizer Inc was rebuffed earlier this year in discussions to purchase AstraZeneca Inc for more than $100 billion only fed anticipation that more mergers are ahead.Linking this activity together is a combination of economic conditions and industry- specific developments including low interest rates, a desire by U.S. firms to make overseas acquisitions to shield foreign profits from U.S. taxes, and the realization that deals can be made to focus on a drugmaker's specific strengths, investors, analysts and investment bankers said on Tuesday."The rumor about Pfizer's possible deal with Astra demonstrates the industry is moving perhaps into another period of consolidation," said Richard Purkiss, an analyst with Atlantic Equities in London. "Large cap pharmaceutical compared to more mature global industries is still fragmented and so can continue to concentrate."
Allergan, Inc. is a multi-specialty health care Company focused on developing and commercializing pharmaceuticals, biologics, medical devices and over-the-counter products. Shares of AGN traded higher by 15.25% or $21.65/share to $163.65. In the past year, the shares have traded as low as $81.33 and as high as $142.00. On average, 3082310 shares of AGN exchange hands on a given day and today's volume is recorded at 32433174.
Pfizer Inc. (Pfizer) is a research-based, global biopharmaceutical company. Shares of PFE traded higher by 0.45% or $0.14/share to $31.00. In the past year, the shares have traded as low as $27.12 and as high as $32.96. On average, 28901400 shares of PFE exchange hands on a given day and today's volume is recorded at 25974832.
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