Mylan pharmaceuticals leaving (Pittsburgh: 2014, how much, employment)

[UKyank]

https://www.yahoo.com/finance/news/r...012044378.html

I wonder how fake WVU degrees are viewed in the Netherlands...

[Craziaskowboi]

Seems like a problem with the federal government.

[gg]

Originally Posted by Gnutella

Seems like a problem with the federal government.

Agreed. Look at how prosperous UPMC and Pitt are and how many people they employ. Is it a win for everyone? Almost. The amount of revenue from all those employees is huge.

[bradjl2009]

I heard they weren't move out as part of this company purchase.

[gg]

This is indeed sad news though. Seemed like a pretty good company for our region.

[Craziaskowboi]

Originally Posted by bradjl2009

I heard they weren't move out as part of this company purchase.

It sounds to me like the headquarters are the only thing that's relocating. It's like BNY Mellon writ global.

[villageidiot1]

According to news reports, Mylan is using the purchase of an overseas business to allow reincorporation in the Netherlands, but is stating that their headquarters will remain in Cecil when the deal for the subsidiary of Abbott Laboratories closes next year.

This type of transaction is called an inversion, and is currently popular in the pharmaceutical and other industries to take advantage of tax rules allowing U.S. companies that merge with foreign companies to move their headquarters to lower-tax countries for tax purposes as long as shareholders of the foreign company own at least 20 percent of the merged company. It would seem that unless U.S. tax laws change, Mylan's headquarters will move to the Netherlands.

[PITairport]

This is a huge gain for our region:

"The complex deal calls for Abbott to move its generic business to a new company that will be headquartered in the Netherlands and called New Mylan. The Southpointe-based company will then merge with the Abbott spinoff to become the parent company of Mylan N.V., which the companies said would be run by Mylan's current executives and be headquartered at Southpointe."
Mylan to merge with foreign generics division of Abbott in $5B all-stock deal (Video) - Pittsburgh Business Times

"The new company will be called Mylan NV, and its shares will continue to trade in the U.S. on the Nasdaq under Mylan's existing ticker symbol MYL. The new company will be led by the current Mylan leadership team and based in Pittsburgh. "
Abbott Laboratories to Sell Developed Generics Business to Mylan - WSJ



This company is an exponentially growing powerhouse in its field:

"Mylan's headquarters will remain in Cecil when the deal for a subsidiary of Abbott Laboratories closes next year, Mylan said. But the world's third-largest generics company increasingly will seek growth abroad."

"In 2003, it had 2,500 employees and sold 115 products, primarily in the United States. Its annual revenue was $1.3 billion. Now, Mylan employs more than 20,000 people around the world, and its portfolio includes about 1,300 medications."
Mylan to buy Abbott business line in $5.3B deal | TribLIVE

Incorporasting for tax reasons in the Netherlands is no different than the hundreds of companies who do the same in Delaware. It's an address. It does not mean the headquarters or main offices will be based there. If that were the case I imagine Delaware would have a skyline 10x that of Manhattan.

[Buckeye Burgher]

Happens all the time in the Wonderful World of M&A.

And likely they will still keep a lot of offices and the bulk of their employment here.
This is about a corporate tax strategy.

It is kind of a kick in the teeth though considering how much we the taxpayers
have put into funding their research over the years.

[WhoIsStanwix?]

I have been reading about this quite a bit in the pharma world. Walgreens is one of the biggest companies currently looking to do this. They term it "tax inversion", and most of big pharma and some related companies have been exploring or completing deals to help them.

While this may be good for the region in terms of jobs, it is hard to say what it will mean for tax revenue for the local area. Wage taxes collected shouldn't change, and neither should property taxes. Is there a state corporate income tax? If so, the state may lose out.