Life Science Giants Reorganize: Pfizer and Allergan Begin Merger Talks

In October 2015, US pharmaceutical giant Pfizer announced the initiation of merger talks with Irish pharmaceutical company Allergan. The proposed transaction, if completed, would have been valued at over $150 billion, making it one of the largest deals in Life Sciences and pharmaceutical history. Pfizer’s primary motivation was tax inversion—re-registering the company's legal domicile to lower-tax Ireland.

Although the deal ultimately failed due to new U.S. Treasury regulations, it reflected the strategy of world-renowned financial consortiums and investment firms in the Life Sciences sector to pursue market dominance and tax efficiency through massive mergers and acquisitions, profoundly impacting the global pharmaceutical industry's consolidation trend.