Pfizer is one of the most prominent names in the health care sector that is working for a disease free, healthier and safer world. The sole business of the company is to produce and sell medicines globally. The company came into existence in New York City in the year 1849 by Charles Pfizer and Charles Earnest. The Company has skyrocketing revenues and the ticker symbol of the company is “PFE”.
PFE is a popular name in the healthcare sector and they have come up with many products that have revolutionized the paradigms of healthcare. The company is now focusing on buying back stocks which is now their major aim. The board of Pfizer has collaborated and hence decided to come up with their buyback plan that will worth almost $11 billion worth shares. This has created a major adrenaline rush among AstraZeneca whose shares are deflating and they are expecting another bid by the company now.
The company just by announcing about this buyback plan started to make money. A one percent increase was seen just after the company made the announcement. PFE previously failed to buy the British healthcare company AstraZeneca although massive hype had been created by the buyer about the progression of the deal which later was reported as complete failure as nothing positive could be abstained from it.
The chief executive officer of the company claims that they are still looking in any potential deal that can be made but critics expect that the bid would probably be dwindled since the government of United States has introduced new taxes.
The purpose of these new taxes is to make situation tough for firms that are based in America. It restricts them to switch their options to places that have taxes lesser than the current. PFE on the other hand seeks to acquire AstraZeneca and switch to European countries were taxes would be relaxed to a great extent.
The US tax regulations are continuously shattering PFE’s plan to move out of the region. They are particularly making it harder each day just to saturate their economics model. But a massive blow is expected with PFE launching their buyback plan.
The company needs to actually draft an aggressive proposal which is more targeted. They either need to focus on their mechanism of moving to countries that support their tax policy or target on their buyback plan.