Pfizer and Allergan merger talks at early stage

Pharmaceutical company Pfizer has confirmed it has entered into talks with generics company Allergan over a potential merger.

If a deal goes through, the companies would have a market value worth more than $300 billion, making it the biggest pharmaceutical company in the world. Currently, Johnson & Johnson is number one and is valued at $279 billion.

However, both Pfizer and Allergan have stressed that the talks are “preliminary friendly discussions” and “emphasis e that no agreement has been reached” and there can be “no certainty that these discussions will lead to a transaction”.

The potential takeover bid echoes Pfizer’s failed attempt to acquire rival AstraZeneca in a $70 billion deal last year. Pfizer had faced opposition from AstraZeneca’s board, as well as a number of UK politicians.