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MERUS LABS INTERNATIONAL INC T.MSL

"Merus Labs International Inc is a specialty pharmaceutical company. The Company acquires and licenses novel pharmaceutical products."


TSX:MSL - Post by User

Comment by kuatoliveson Jul 06, 2015 3:17pm
75 Views
Post# 23895566

RE:RE:Deal Coming Soon????

RE:RE:Deal Coming Soon????Its tax jurisdiction is Canada, which is marginally higher than Ireland, so any takeover would likely not be driven by tax inversion purposes (as it was for Pozn/TRX), but business development. POZN purchased Tribute because it wanted to switch gears and get into the pharma sales business rather than pure development (POZN currently has 0 drug reps in the US, but are currently hiring), and it was more advantageous to pick up stumps and move to Ireland to avoid the 40% corporate tax rate in the states as opposed to 12.5% in Ireland.

Merus could certainly follow Tribute's example and merge with an American pharma and move to another tax jurisdiction. It wouldn't surprise me if a wave of such deals are coming in the next 24 months, but we'll see. As a large holder of TRX, I was certainly pleased with the deal.
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