Showing posts with label Pharma sector. Show all posts

Nov 24, 2015

Pfizer to take over Allergan in blockbuster merger deal of $160 billion

11/24/2015
US drugs giant Pfizer Inc. has struck upon a deal to buy Ireland based Allergan for $160 billion  making it the biggest pharmaceuticals merger deal in history of healthcare sector.
The blockbuster merger would create the world’s biggest drug maker to be called Pfizer Plc. with its headquarters in Dublin, Ireland.
Under this deal, Allergan shareholders will receive 11.3 shares in the merged company for each of their Allergan shares.
Currently Pfizer Inc. is selling flagship pharmaceutical products like Viagra and cholesterol drug Lipitor, while Allergan is best known for selling anti-wrinkle treatment drug Botox, Alzheimer’s drug Namenda and dry-eye medication Restasis.
 
Comment
  • Analysts have suggested that this deal will allow Pfizer. Inc to escape relatively high US corporate tax rates (around 35%) by moving its headquarters to Dublin where corporate tax is as low as 12.5 % (Lowest among major countries).
  • It should be noted that such kind of merger deals to evade the high corporate tax is termed as corporate inversion deals.
  • US Treasury is concerned about losing tax revenue because of this deal and is taking steps to clamp down on tax inversion deals.

Corporate Inversion Deals

These merger deals are undertaken by a company by re-incorporating itself overseas in order to reduce the tax burden on income earned abroad compared to home country. For this, company shifts its base to a country that has lower tax rates and less stringent corporate governance requirements.

Nov 16, 2015

Health Ministry inaugurates country’s first AMRIT outlet at AIIMS in New Delhi

11/16/2015
Union Ministry of Health & Family Welfare has opened country’s first Affordable Medicines and Reliable Implants for Treatment (AMRIT) outlet at AIIMS in New Delhi to sell drugs at highly discounted rates.
The retail outlet was inaugurated by Union Health Minister J P Nadda at AIIMS campus in New Delhi under the AMRIT programme which aims drugs to sell drugs at highly discounted rates.

Points to note
  • The pilot AMRIT outlet will provide drugs for cancer and cardiovascular diseases at highly discounted rates.
  • At this outlet the prices of 202 cancer and 186 cardio-vascular drugs will reduced on an average by 60 to 90 per cent.
  • The pilot AMRIT outlets will be managed by the government-owned HLL Lifecare Ltd , which will sell both drugs and implants at significant discount on market rates.
  • These drugs and implants will be sold based upon authentic prescriptions from doctors to AIIMS patients and also patients availing treatment at other hospitals.
Later, HLL Lifecare Ltd will establish and run the AMRIT chain of pharmacies across the country with an aim to reduce the cost of treatment for the patients.
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