Inversion Crackdown: Does It Spell The End For Pfizer/AstraZeneca?

The U.S. Treasury’s initiative to reduce M&A motivated by tax avoidance could leave Pfizer in a lurch, without an attractive acquisition target to reenergize the big pharma’s long-term outlook.

The U.S. Treasury released a notice late Sept. 22 announcing tax policy changes intended to reduce the economic advantage of M&A for the purpose of tax inversion, leaving investors in Pfizer Inc. wondering what the changes will mean for Pfizer’s M&A strategy – and particularly if the news means the end to a mega-merger with AstraZeneca PLC.

Other pharma deals hang in the balance, most notably AbbVie Inc.’s $53.3 billion acquisition of Shire PLC, already...

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