Citi analyst Liav Abraham says feedback from his legal due diligence suggests that the new Treasury anti-inversion rules are benign. The "earnings stripping" component associated with tax inversion transactions is not addressed in the Treasury's remarks, the analyst tells investors in a research note. Further, "merger of equals" transactions, the category which a potential Allergan (AGN), Pfizer (PFE) transaction would fall into, are not addressed in the new rules, Abraham points out. He now sees a higher likelihood of Pfizer's acquisition of Allergan taking place. The analyst has a Buy rating on Allergan with a $360 price target.

Pfizer announced that the European Commission, or EC, has granted marketing authorization for Emblaveo for the treatment of adult patients with complicated intra-abdominal infections, or cIAI, hospital-acquired pneumonia, or HAP, including ventilator-associated pneumonia, or VAP, and complicated urinary tract infections, or cUTI, including pyelonephritis. It is also indicated for the treatment of infections due to aerobic Gram-negative organisms in adult patients with limited treatment options.