One of the big winners in the pharmaceuticals space this week was Horizon Pharma (NASDAQ:HZNP), up 17% in a single day on news that it was moving to Ireland to avoid higher U.S. tax rates. The company accomplished the move by buying Ireland's own Vidara Therapeutics for $660 million, and renaming the new combined company Horizon Pharma PLC. The move is expected to directly affect the bottom line, but the top line wasn't forgotten. Horizon revised guidance for its annual sales upward, boosted by sales of Vidara's drug actimmune.
In this segment from Friday's Market Checkup, Motley Fool health-care analysts David Williamson and Michael Douglass take a look at the move from Horizon, and why they expect this emerging trend in the pharma space to continue.
David Williamson, Michael Douglass, and The Motley Fool have no position in any of the stocks mentioned. 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.