FYI: The pharmaceutical sector, which had been witnessing several tax inversion deals over the last few months, is not likely to go down this route given the Sep 2014 notice issued by the U.S. Department of the Treasury. New rules imposed by the Treasury Department make such cross-border deals unattractive -- in fact, companies like AbbVie, Auxilium and Salix backed off from such agreements.
However, mergers and acquisitions (M&As) will continue to play a major role and are not showing any signs of slowing down. Auxilium, which terminated its merger agreement with QLT, will be acquired by Endo in the first quarter of 2015. Other acquisition deals announced recently include the upcoming acquisition of Cubist by Merck and that of Avanir by Japanese firm, Otsuka. (Read: 3 Biotech ETF Winners from 2014’s Best Performing Sector)
Regards,
Ted
http://www.zacks.com/stock/news/159623/can-pharma-etfs-continue-their-uptrend-in-2015?article_id=159623&type=BLOG
Comments
M&A's have been in play for several years with the cheap money and I do not find a reason for any decrease in this area.
However, some public companies today, will go the way of private takeovers.