The likelihood that Pfizer would eye another huge deal – and that Allergan was a potential target – has been simmering for weeks. After all, Pfizer execs have hardly made it a secret that, after failing to win control of AstraZeneca last year, they remain interested in another big drug maker that would not only jumpstart growth, but provide a tax benefit.
But with every potential combination, however, there are questions. Will a tax inversion – which prompted the White House to tighten rules last year – invite another round of regulations in order to further discourage such deals? Would a deal accelerate Pfizer plans to split into separate entities selling brand name and generic drugs? And who would run a merged company – does Saunders stay or go?