Pfizer & Allergan tie-up gives rise to new US advertising giant
A $155bn mega-merger between US pharmaceuticals giant Pfizer and Dublin-based Allergan has given rise to one of the world’s largest advertisers.
Figures compiled by Kantar Media suggest that the combined entity will have an advertising war chest larger than L’Oreal, Berkshire Hathaway and AT&T with Phizer alone spending $1.4bn on advertising in the US last year.
For its part Allercan is believed to have had an advertising spend of $654m in 2014 although it remains to be seen whether this largesse will remain intact post-merger or whether synergies will give rise to a period of cost cutting.
Pharmaceuticals advertising have long been a lucrative business in America which has laxer rules than other global markets with the top five advertisers splashing out a combined $2.5bn between them in 2014.