The merger of Allergan PLC with the giant pharma corporation, Pfizer, was noted by the famous entrepreneur Flávio Maluf. He is the president of Eucatex, headquartered in Brazil. Pfizer is a long time producer of pharmaceutical products such as Botox, located in the United States. The merger actually involved Allergan buying Pfizer for a large, but undisclosed sum. This is now the world’s largest pharma laboratory. It will be renamed to Pfizer PLC and coupled with this merger, according to Mr. Maluf, will be the introduction of a dozen new drugs that run the gamut of modern medical problems. The stock markets gave a generally positive response to news of the merger, with some price fluctuations that quickly settled at a good and stable stock price for the new company.
New drugs to treat diabetes, reduce the effects of Alzheimer’s disease, and to fight cancer are in trials now. Flávio Maluf noted that the plan is to move the newly merged company to the country of Ireland. This is to reduce the combined company’s tax burden, as Ireland charges at least 15% less in corporate taxes than in the US. The 10% tax rate charged by Ireland will increase total profits by reducing operational overhead. The difference is more than the annual profit margin for many companies still operating in the US. This dramatic lowering of their tax burden has made a way for Pfizer’s current executives to easily defend this major change to their business.
In recent years there have been many mergers of large corporations that resulted in the combined companies leaving the US, because of the tax savings. The US government has worked to stem the flow of US businesses out of the country, especially those that have migrated to Asia. Out of the drug trials the US Food and Drug Administration (FDA) has so far approved one new cancer fighting drug that works in the treatment of breast cancer. In the past, Allergan has done good research in areas of well being and maintaining the health of women, especially in the area of eye vision.
Both GrandFood Group and Eucatex are owned by Flávio Maluf and the Maluf Family. These companies own the popular Premier Pet and Golden Rations brands. The son of Paulo Maluf, a politician in Brazil, the middle aged Flávio Maluf has long experience in business. He has a Mechanical Engineering degree from the famous Brazilian FAAP. A full bio can be found here.