Actavis to Purchase Forest Labs in $25B Pharma Deal

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Feb. 18 (Bloomberg) -- Bloomberg News’ Cristina Alesci reports on the $25 billion deal for Forest labs by Actavis to increase its focus on branded medicine on Bloomberg Television’s “Bloomberg Surveillance.”

Acquiring forest labs at $25 billion.

Cristina alesci, what is your take away?

Actavis felt like they needed to get into the branded space.

For growth potential, they felt they needed to be in the branded space.

Forest labs has an alzheimer's drug enabled pleasure -- and a blood pressure drug doing quite well.

Companies are done with returning capital to shareholders, increasing dividends, now they want to see growth.

We could say more deal activity, especially when it comes to the pharmaceutical space, pharmaceutical companies are no longer pouring money into r&d developing products organically, they are going out and trying to buy growth in the market.

Tom brought this up, transnational aspect of the deal.

What are the regulatory hurdles that might come up?


In this deal, we are not going to see too many regulatory hurdles.

The thing is that the government wants to see foreign investment in the u.s. that's what robert wolf was saying.

Actavis has a history of going out and doing cross-border deals, they are very well-versed in how to get these things done.

Robert wolf, repeat why it is so important to have foreign direct investment coming into the u.s. we were talking earlier -- it was a job creator.

Of the foreign companies that have u.s. subsidiaries, they spend $40 billion in r&d and have created 5 million jobs, 20% of experts.

Building, buying, investing in america helps us grow.

That is the best argument i have ever heard for immigration reform and making it easier for smart people to come to america.

The interesting thing on actavis, historically it is an american company.

It was called watson pharmaceuticals, they ended up buying a dublin-based company to get around us taxes.

No territorial tax there.

There has been discussion about fixing the corporate tax rate in america, that has to get through congress.

Carl icahn was tweeting about this, second-largest shareholder of forest labs.

"great results." he has been on the right side of a lot of deals recently.

I would suggest this industry has been a train wreck for 20 years.

The pharma industry?

Cristina used to be in the industry, this is the detritus of 30 years of regulation.

Not entirely, the industry has been challenged on the innovation front.

They developed all of these pretty easy to produce drugs that cured a lot of -- cholesterol problems, viagra, blockbuster products that generated revenue for a long time.

Now they have to go out and solve bigger problems, like cancer, that takes more time and money.

Now that the industry has made bank on the solvable mass problems, they have got to go out and solve the bigger and more difficult problems.

Alix mentioned icahn is please.

It is amazing, apple, netflix, one after another.

Not so great.

Futures up 2, dow futures up 30. cristina alesci, thank you so much on actavis.

Samsung unveiling a larger phone next week.

This text has been automatically generated. It may not be 100% accurate.


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