Taking a page from Pfizer’s playbook, Mylan is buying Abbott Laboratories’ branded specialty and generics businesses in developed markets outside the U.S.. The $5B deal is structured to result in a tax inversion, with the newly formed merged company to be headquartered in the Netherlands.
“We see Mylan creating a platform for potential future acquisitions with this deal,” thanks to revenue from the Abbott products and a lowered tax rate of 20 to 21 percent in the first full year and high-teens later on, said JP Morgan analyst Chris Schott.
Abbott will continue to sell branded generics in developing markets.
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