The heads of drugmakers Pfizer and Allergan say the record $160 billion combination they are planning is meant to produce more medicines and boost revenue, not to just slash jobs and other costs.
The deal announced last November would move Pfizer's official headquarters for tax purposes from New York to Allergan's base in Ireland. The strategy, called an inversion, would sharply decrease Pfizer's income tax bill compared to current U.S. tax rates.
Pfizer has a history of making huge acquisitions of other drugmakers, then closing some facilities and eliminating thousands of jobs to boost profit temporarily.
Speaking at an industry health care conference, Pfizer CEO Ian Read and Allergan CEO Brett Saunders both said that Pfizer's purchase of Allergan is aimed at helping the combined company grow faster.
