KALAMAZOO (WKZO-AM) — The CEO of Southwest Michigan First says a $160 billion agreement combining Pfizer with Ireland-based Allergan shouldn’t negatively affect the region.
Ron Kitchens said there could layoffs, but only at Allergan. That’s because both companies will try to better-integrate themselves with Pfizer’s sprawling facility in Portage.
“This is the largest manufacturing site Pfizer has — it has the capacity to do just about everything,” Kitchens said. “We hope it means growth and opportunities at the plant in Portage.
The deal is being done, essentially, to dodge taxes. Pfizer claims it pays one of the world’s highest tax rates among pharmaceutical companies because it’s based in America.
“If you’ve got a European partner, that becomes your de-facto headquarters, and that really becomes your biggest change,” Kitchens said.
Regulators in the U.S. and Europe still must approve the deal.
– Anthony Pollreisz
