Cosmo moves to Ireland
Jilted Salix acquisition target Cosmo Pharmaceuticals is moving to Ireland. Bloomberg reports that the Italian drugmaker has decided to move its executives and official address to Ireland and plans on building a new manufacturing plant.
The move will give Cosmo the tax benefits it expected to get by being acquired by Salix, but did not get when the Raleigh, NC, company quashed the deal soon after the US Treasury introduced new tax inversion rules.
The plan was that gastrointestinal drugmaker Salix would buy Cosmo, set up shop in Ireland and lower its tax rate, but Salix said it changed its mind because the new tax rules made the deal less desirable. Cosmo's CEO shrugged off the rejection at the time, telling Bloomberg “The political environment changed, the shareholders maybe pushed them to sell the company, it's easy to understand.” Cosmo also left with $25 million in break-up fees..