CORRECT: Pfizer/Actavis Possible Deal Would Add to 2016 EPS: ISI
2014-08-25 23:03:31.782 GMT
By Jay Miller
Aug. 25 (Bloomberg) -- (Corrects spelling of Actavis in
headline.)
ISI Group models scenario of 24.9% accretion in
Pfizer/Actavis deal in 2016 if applying 12.5% tax rate Irish
statutory rate, analyst Mark Schoenebaum writes.
* Potential ACT deal accretive up to tax rate ~25%+
* Model shows EPS accretion 26.9% in 2017, 31.3% in 2018,
34.8% in 2019, 38.9% in 2020
* Model assumes 60% premium from unaffected Aug. 19 ACT price,
R&D synergies of 10%, SG&A synergies of 20%
* Price may be bid up “substantially”
* ACT deal “makes some sense"; market would likely prefer PFE
purchase AstraZeneca
* NOTE: (Aug. 20) Pfizer Said to Explore Alternatives to
AstraZeneca Purchase
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To contact the reporter on this story:
Jay Miller in New York at +1-212-617-4371 or
bmiller63@bloomberg.net
To contact the editors responsible for this story:
Larry DiTore at +1-212-617-1603 or
lditore@bloomberg.net
2014-08-25 23:03:31.782 GMT
By Jay Miller
Aug. 25 (Bloomberg) -- (Corrects spelling of Actavis in
headline.)
ISI Group models scenario of 24.9% accretion in
Pfizer/Actavis deal in 2016 if applying 12.5% tax rate Irish
statutory rate, analyst Mark Schoenebaum writes.
* Potential ACT deal accretive up to tax rate ~25%+
* Model shows EPS accretion 26.9% in 2017, 31.3% in 2018,
34.8% in 2019, 38.9% in 2020
* Model assumes 60% premium from unaffected Aug. 19 ACT price,
R&D synergies of 10%, SG&A synergies of 20%
* Price may be bid up “substantially”
* ACT deal “makes some sense"; market would likely prefer PFE
purchase AstraZeneca
* NOTE: (Aug. 20) Pfizer Said to Explore Alternatives to
AstraZeneca Purchase
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Jay Miller in New York at +1-212-617-4371 or
bmiller63@bloomberg.net
To contact the editors responsible for this story:
Larry DiTore at +1-212-617-1603 or
lditore@bloomberg.net