Last month, some industry watchers speculated that the low price Valeant agreed to pay for North Carolina's Salix could leave room for other bids. And now, one has arrived, courtesy of Endo International.
Valeant may have inked a pact to buy Salix Pharmaceuticals for more than $10 billion. But that doesn't necessarily mean rival bids aren't on the way.
It didn't take long for serial acquirer Valeant to jump back into the dealmaking saddle after failing to snag Allergan last year. Now, the Canadian pharma has inked its second agreement of the month--a $10.1 billion pickup of North Carolina's Salix Pharmaceuticals that will ring in as its largest deal ever.
Much as expected, M&A leader Valeant has bagged Salix Pharmaceuticals in a buyout and now plans to slash into its research and development budget to help pay for the deal.
There are reportedly at least three horses in the race to buy Salix Pharmaceuticals, but according to Reuters ' sources, serial acquirer Valeant has the lead.
With Valeant and Shire already said to be prepping bids for North Carolina's Salix, it seems there's a third wannabe suitor, too. Word on the street is that Endo International has come calling multiple times--and though Salix has shot Endo down, it's still not going away.
Salix Pharmaceuticals, moving on from an embarrassing inventory scandal, is reportedly headed for a bidding war between two larger companies with diametric approaches to the business of developing drugs.
Earlier this month, rumors started swirling that Valeant was talking with its advisers about a potential bid for North Carolina's Salix Pharmaceuticals. Now, it's reportedly one step closer to making that happen--but it may not be alone.
Shire has some hefty sales forecasts in place for 2020, when CEO Flemming Ornskov has said it'll be bringing in a $10 billion top-line haul. Now, after a monster sales vault in 2014, the company is nearly 60% there--but don't expect a repeat growth surge this year, it says.
After keeping quiet on the M&A front since its failed hostile bid for Allergan, serial acquirer Valeant last week announced its leading bid for the bankrupt Dendreon's assets. Now, it may be ready to strike again.