Pharmaceutical firm Pfizer’s $160 billion merger with fellow drug giant Allergan died Wednesday, just days after the Obama administration revealed new rules designed to undercut this type of tax inversion deal.
The collapse dashes New York-based Pfizer’s hopes of lowering its U.S. tax bill by shifting its tax base overseas to Allergan’s Irish home.
The companies said they agreed to ditch the deal that would have put Pfizer’s fibromylagia treatment Lyrica and erectile dysfunction drug Viagra under the same umbrella as Allergan’s wrinkle treatment Botox and dry-eye treatment Restasis.
Pfizer will pay Allergan a breakup fee of $150 million.
Nathan Bomey and Kevin McCoy, USA TODAY, April 6, 2016