Valeant may think Allergan is a great buyout fit, as evidenced by the $47 billion bid it made for the California company Tuesday. But Allergan may feel differently--at least at the current offering price.
Allergan didn't waste any time in coming up with a poison pill to help thwart a hostile, $46 billion takeover attempt by Valeant CEO J. Michael Pearson and his hedge fund ally William Ackman. The board issued a shareholder rights plan on Tuesday evening giving its general investors the right to buy discounted shares once someone accumulates a threatening stake in the company of 10% or more.
Valeant wants to buy Allergan, and a takeover orchestrated by the Canadian company's CEO, J. Michael Pearson, usually involves some hefty job-chopping. But sales reps need not worry about major layoffs, according to the helmsman.
As The Wall Street Journal reports, the Irvine, CA-based Allergan is the latest apple of deal-happy Valeant's eye. And allied with activist investor Bill Ackman--who recently flew under the radar to amass a 9.7% Allergan share--it might just have the heft to pull off a pickup, with or without Allergan's blessing.
Activist investor William Ackman has allied himself with biopharma raider Michael Pearson at Valeant to buy out Allergan, the maker of Botox, which has been actively hunting down its own buyouts, according to a report Monday evening from The Wall Street Journal.
Back in January, Valeant Pharmaceuticals' CEO J. Michael Pearson couldn't say how he intended to reach his lofty goal of cracking the list of top 5 drugmakers worldwide. Now, he's offering new details about his acquisition blueprints, and they include deals in ophthalmology, dermatology and dentistry.
Valeant CEO Michael Pearson has never been a fan of drug R&D. Openly caustic in the past about the risk involved in drug research, Valeant's chief executive has largely steered clear of developing a pipeline, focusing instead on a clear strategy involving the rapid acquisition of marketed drugs.
Any industry that's undergoing as much change as biopharma is always looking for leadership. Old marketing practices are being blown apart, R&D is being subjected to emergency surgery, drug...
Pfizer celebrated three birthdays January 1. That's when it officially divided its business into three distinct units, each with its own management and financial reporting--and each with its own prospect of setting off on its own, at least eventually. Analysts are betting that one of those three businesses will be first to go: Already, potential buyers are buzzing.
J. Michael Pearson is one ambitious man. The Valeant ($VRX) CEO wants to elbow his way to the top echelons of the drug business. If he has his way, Valeant will be one of the top 5 drugmakers in the world. By 2016.