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Breakingviews: Inversion feeding frenzy

9:34pm IST - 03:18

Robert Cyran and Reynolds Holding discuss drugmaker Endo's tax-driven bid for Auxilium and the dearth of tasty prey for pharma sharks.

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Corporate and versions mergers designed to take advantage of lower taxes and foreign jurisdictions are all the rage and -- -- We're talking about one today that makes my head hurt me and US company and its violent Irish company going after another US company that once a Canadian company. Please think the next one it's really. It's really isn't what is basically got these two companies that it was the sharks basically they go up and they buy at other companies that rights to other drugs. Bryant and what these days one shark is trying to buy the other short game guru or at least have a ticket and -- -- -- there under the company's -- Well a Canadian company -- the whole company over to Ireland Ireland tax. Experts they're trying to Viacom because Auxilium Auxilium they're trying to buy Canadian company do -- similar sort of thing yeah. I'll move it all the candidate exactly which will give paying our taxes dot com. And what this shows they think is that. They were probably a paucity of assets in other words never done so different so many of these deals it's been the biggest year ever for farmer. Yet -- you know and most of it a lot of its been concentrated among these kind of specialty drug come right we've got valiant -- -- Activists -- -- yet and and what it means is perhaps there aren't that many fish in the scene in the jurors are forced to eat each other and that that's not a good time or what's driving this deal is I mean of these companies doing okay are they losing money they're they're doing both kind of not so great done and why is. Well these companies because what they do is that I have they've kind of -- -- that by cut drugs which are about the patents are about to expire at their unclear Bryant or they buy a competition about and not just to start up. And both these companies are facing. Really to think if they don't do more deal they put these declining sales nearly like sharks -- can -- moving forward if they don't they -- And if they don't do deals these these companies eventually disappeared so that is what's the that the problem they both face. -- -- in we've looked at a lot of these versions in the Tim Hortons for example there's a little bit a lot of talk was that for taxes. We as we say there were other things describing it is this what about tax and stores this. This one yet because what they can do is. And it because they'd and the irony pay much lower tax rate rise they can -- at the company and they said they're not gonna buy. Again and those buying like zillion reasons behind Kenny coming up. And this that we only want -- -- we don't want the Canadian company that mine in other words they only want the US asset which pays high tax rates right. And they think they can cut costs and in particular accident -- middle and is there a school was more bad news. For both companies today -- well and yesterday because the FDA had a panel they're looking at testosterone -- use and and -- out of control in its it causes some problems of course apart. Things. And a lot of doctors are kind of an ethical -- just right it's coming right left and these companies they've both -- testosterone so the question is -- there there could be some. Tight restrictions on if that happens but these companies this could create interest and stuff. Will be watching this deal as well as others in the mean time stay tuned for more breaking views tomorrow.

Breakingviews: Inversion feeding frenzy

9:34pm IST - 03:18

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