At one time, Allergan was so confident it could lock up an acquisition of Salix Pharmaceuticals to thwart Valeant's hostile bid that it reportedly snubbed potential white knight Actavis when it came calling. But those talks have long since stalled, and now, Salix is investigating an inventory blip that The Wall Street Journal 's sources say was a dealbreaker.
Chalk up a victory for the U.S. Treasury Department, whose new rules put the kibosh on Salix Pharmaceuticals' tax inversion deal for Cosmo's Irish unit. Instead, the North Carolina company is reportedly in talks to sell itself--but to Actavis, not Allergan.
Specialty drugmaker Salix Pharmaceuticals is backing out of a $2.7 billion deal that would have given it an Irish domicile--and thus a lower tax rate--in the first victory for U.S. leaders working to discourage such transactions.
Salix Pharmaceuticals nabbed the new Relistor approval it was counting on. The FDA blessed the injectable drug as a treatment for all patients with constipation caused by opioid pain relievers, boosting its target market more than tenfold.
Valeant Pharmaceuticals isn't the only one who thinks Allergan should hold off on dealmaking till shareholders say their piece at a December special meeting. Three top-15 Allergan shareholders are urging the Botox maker to delay until investors weigh in on Valeant's hostile bid.
Anyone else feel like we need a mind map to keep track of the incestuous M&A talks going on in pharma right now?
The ongoing attempt by Allergan to thwart a Valeant takeover by bulking up with an acquisition of its own has officially turned nasty. On Tuesday, activist investor William Ackman of Pershing Square Capital Management sent a letter to Allergan threatening to sue the company if it goes ahead with its plan to buy Salix Pharmaceuticals--a deal that reportedly could exceed $10 billion.
Salix Pharmaceuticals, which has its hands full with a tax inversion merger and the integration of Santarus, will hand off Canadian sales of some of its drugs to India's Lupin. The package includes Salix's opioid constipation drug Relistor, a drug which has fallen far short of its initial potential.
Allergan CEO David Pyott has hinted he might make a pickup to thwart Valeant's attempts to take over his company. And now that one-time target Shire is off the table after being snatched up by AbbVie, his sights may be set on Salix.
Allergan, working to fend off a hostile approach from Valeant Pharmaceuticals, is reportedly taking a look at the smaller Salix Pharmaceuticals, weighing a multibillion-dollar deal that could render it unattainable--or at least drive up its asking price.