Health-care companies are increasingly looking to flee the U.S. for lower corporate tax rates and to access cash trapped overseas. While all deals will pale in comparison with Pfizer's failed pursuit of AstraZeneca, that would-be deal has seemingly ignited an inversion deal mania.
Our newest potential coupling is big pharma AbbVie (NYSE:ABBV) and Ireland-based Shire (NASDAQ:SHPG). It's not an obvious fit for AbbVie beyond the immediate tax benefits, but Shire is an ADHD and burgeoning orphan-drug powerhouse growing at a faster rate than its peers.
In this episode of Market Check-Up, The Motley Fool's health-care-focused investing show, analysts David Williamson and Michael Douglass discuss this new proposed inversion deal, how Shire might respond, and what it means for investors.
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David Williamson owns shares of AbbVie. and Pfizer. Michael Douglass has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Valeant Pharmaceuticals. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.