It’s been an intense year of deal making in the biotech sector, once belittled by political tweets, bashed as overvalued by Fed officials…

In the first three months of the year, biotech accounted for 10.5% of all global M&A activity. As of November 2015, the sector has seen $397.2 billion worth of deals this year alone, as we noted here.

Now, as powerhouses Allergan and Pfizer announce a $160 billion mega-merger between the two, this may just be the hottest year of biotech M&A activity on record…

Chart of the Day: The Historic $160 Billion Inversion

And it’s very likely to continue…

Johnson & Johnson just noted it was open to deals of any scale.  Amgen is looking for a $10 billion acquisition… most in an effort to strengthen pipelines eroded by older products and potential loss of patent protection.

Then, there are those simply merging for tax inversion opportunity.

For example, a Pfizer-Allergan merger is likely to generate $2 billion in tax savings over the first three years.  At the same time, it would allow the merged company to enjoy a tax rate of 7.5%, which is far less than Pfizer’s current 25% tax rate…

While such a strategy raises eyebrows in the Obama Administration -- which just issued new rules limiting such deals – there’s not a lot any one can do here…

In fact, the new rule is unlikely to disrupt because – according to Forbes – “The Treasury’s inversion rules relate to deals in which U.S. companies end up owning between 60%-to-80% of the newly formed company, and the foreign entity owns somewhere between 40% and 20%. The idea was to stop U.S. companies from cheaply picking up small companies just for tax purposes.”

Allergan shareholders will receive 44% of the merged company, meaning the two companies are seeking that “60:40 split,” making it difficult for any one to block it…

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