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Speaker 1: The magic of Bloomberg b NA articles and essays is

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Speaker 1: their detail. It is crushing how smart they are about

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Speaker 1: certain windows. We're gonna drag you, kicking and screaming right

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Speaker 1: now into the legal mass known as pharmaceuticals. Eleanor Tyler

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Speaker 1: is with Bloomberg b NA out of Georgetown Law and

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Speaker 1: she joins US now. Eleanor, there's a lot of media

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Speaker 1: frenzy about oh, they're all moving to Ireland, or they're

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Speaker 1: doing this, they're doing that. Cut to the chase in Washington,

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Speaker 1: what do we want from our pharmaceutical industry? Well, Tommy,

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Speaker 1: see you want a lot from our pharmaceutical industry. UM

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Speaker 1: lately a hot topic in addition, of course, to wonder

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Speaker 1: cures for our various ailments, if we would like lower

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Speaker 1: generic drug prices. If there's a lot of heat around

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Speaker 1: that topic, and the Federal Trade Commission has been take

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Speaker 1: being some of that heat at least from the hill. UM.

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Speaker 1: But we did an analysis that shows based on the

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Speaker 1: FTCs data and using running that through a tool on

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Speaker 1: the on our corporate transactions, it's called deal analytics, we

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Speaker 1: found that the FTC is actually already looking very closely

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Speaker 1: at pharmaceutical mergers, Well, what brings them in uh at

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Speaker 1: a time when everybody is also concerned about these pharmaceutical

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Speaker 1: mergers because they figure it's just a text deal. Well,

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Speaker 1: the tax deal is a separate issue. Of course. UM

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Speaker 1: inversions blew up the recent big planned merger between Fiser

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Speaker 1: and Allergan. UM. That issue is if they are going

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Speaker 1: to have sales in the US, we would really prefer

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Speaker 1: that they would pay taxes here as well. UM the

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Speaker 1: the inverse vision issue. They've brought new regulations that restrict

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Speaker 1: how those are booked. UM. That killed that merger. But

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Speaker 1: other mergers that ordinarily involves mostly just merging two companies

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Speaker 1: that are looking to get efficiencies from combining their activities

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Speaker 1: as opposed to from the tax aspects of the deal,

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Speaker 1: those go through the FTC. So there are actually two

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Speaker 1: separate regulatory issues. UH. For those mergers. The model would

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Speaker 1: seem to be, at least in my very narrow understanding

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Speaker 1: of pharma, is that some small company develops a wonder

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Speaker 1: drug and gets purchased by a big company that can

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Speaker 1: then add it to their balance sheet and then provide

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Speaker 1: the distribution. So if this big going on like that

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Speaker 1: for so long, why is the FTC all of a

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Speaker 1: sudden becoming more or involved. That's an antting question. The

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Speaker 1: FTC really isn't all of a sudden becoming more involved.

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Speaker 1: As we look back over the data. They've been very

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Speaker 1: careful about these mergers for for a long time. They

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Speaker 1: have a specialized group within the FTC that looks at them,

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Speaker 1: and that group is very expert, according to everyone I've

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Speaker 1: talked to that is very involved with UM, with shepherding

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Speaker 1: firms through this process UM. They look at them very carefully,

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Speaker 1: but then they don't actually block the mergers, and that

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Speaker 1: appears to be because they can get fairly comfortable that

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Speaker 1: if the companies will shed a couple of drugs or

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Speaker 1: a couple of UM devices in areas where they are

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Speaker 1: like one of only a few providers, that the merger

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Speaker 1: itself won't increase UM won't decrease competition in pharmaceuticals UM.

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Speaker 1: So those murders are sort of reviewed very carefully for

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Speaker 1: a long time. It isn't a new thing so much,

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Speaker 1: But you're right, there is this trend it seems for

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Speaker 1: pharmaceutical companies to sort of merge to innovate. They are

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Speaker 1: looking to fill their pipeline if they have a whole

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Speaker 1: behind a drug. This is important. Are they emerging like

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Speaker 1: in the old days where industrial firms merged literally to

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Speaker 1: acquire engineers, is that, you know? Forget about all the

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Speaker 1: financial engineering and all that. Are they emerging. Are they

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Speaker 1: emerging rather to buy PhDs and graduate students? You know,

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Speaker 1: it doesn't necessarily look that way. It looks like what

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Speaker 1: they are merging to get is a drug that's this

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Speaker 1: specific point in the development process. They are merging to

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Speaker 1: offload some of the risk of R and D and

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Speaker 1: capture the benefits of it. In other words, I don't know,

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Speaker 1: if you're familiar with oil and gas, that's something that

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Speaker 1: I know fairly well. With oil and gas, you might

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Speaker 1: drill twenty holes to get to live well, right. The

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Speaker 1: same thing is true of pharmaceuticals. When they purchase a

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Speaker 1: smaller company that's having success in R and D, they

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Speaker 1: don't have to drill those dry holes. They have a

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Speaker 1: drug that they think is going to make it. This

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Speaker 1: has been wonderful, Thank you so much. Eleanor Tyler with

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Speaker 1: Bloomberg b NAU some of the ballet of pharmaceutical M

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Speaker 1: and A. I can't say enough, folks about the detail

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Speaker 1: of Bloomberg, BNA work. It's it's not the normal. Bland

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Speaker 1: definitely wants if you have an interesting companies. Yeah, it's

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Speaker 1: it's thicker is the word that I would use Eleanor

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Speaker 1: Tyler on pharmaceuticals