In potential mega-merger with Pfizer, Allergan chief Saunders could become CEO
- For the last several weeks, Pfizer and Allergan have been in friendly preliminary discussions regarding a potential merger. A deal could come as early as Thanksgiving.
- If the merger happens, Pfizer will have a Dublin-based headquarters, giving it a low-tax legal address—something that has been on the company's radar for some time.
- Eventually the company would most likely split into two operational units, with Allergan CEO Brent Saunders possibly becoming the CEO of the fastest-growing business, Bloomberg reports.
The two companies have emphasized that the discussions underway are not hostile. In fact, they're described as simultaneously 'friendly' and 'preliminary.' Both Ian Read, Pfizer's CEO, and Saunders are coming to the table with solid records of accomplishment.
Under the leadership of Read, Pfizer's stock has roughly doubled in value since 2010. He has also overhauled R&D, and re-focused on core therapeutic areas and programs. Saunders became CEO of Bausch and Lomb in 2010 and sold the company to Valeant three years later for $8.7 billion. He subsequently took charge of Forest Laboratories, which was bought by Actavis prior to its acquisition of Allergan.
Combined, the two CEOs are seasoned veterans and bring M&A experience. It could make for a very powerhouse union.
- Bloomberg Business Pfizer, Allergan Said to Discuss Making Saunders CEO in Deal