European Notebook: Tax Inversions; Patent Settlement Fines; Delays To Release of Clinical Data

28 Jul 2014

• By John Davis

The pursuit of mid-sized European pharma by U.S. firms for tax as well as other benefits continued in July, while biotechs in the region stayed cautious about IPOs; the European Commission encountered opposition to its stance on patent settlements, while EMA had to delay starting the pro-active release of clinical trial data.

Many mid-sized European life science companies are now being evaluated as potential targets for U.S. firms seeking a lower tax base by acquiring a legal address abroad, following Ireland-based Shire PLC’s agreement to be bought by AbbVie Inc. in the largest “tax inversion”-related acquisition to date of a European pharmaceutical company ([A#14140718005)]).

The trend is expected to continue in the absence of U.S. legislation to stop it ([A#14140722003]). “Until there is...