Corrects Allergan's False Statements Regarding Bausch + Lomb Performance
Valeant Pharmaceuticals Contacts Quebec and U.S. Regulators About Allergan's False and Misleading Statements
LAVAL, Quebec, Jul 21, 2014 (Canada NewsWire via COMTEX) -- Valeant Pharmaceuticals International, Inc. ("Valeant") VRX +0.37% CA:VRX +0.06% has contacted both the Autorite des marches financiers ("AMF") in Quebec and the U.S. Securities and Exchange Commission ("SEC") regarding Allergan Inc.'s AGN +0.59% apparent attempt to mislead investors and manipulate the market for Valeant common shares by continuing to make false and misleading statements regarding Valeant's business despite Valeant's public statements correcting such information. The latest misleading statements were made last Friday when Allergan falsely asserted in an SEC filing that Bausch + Lomb's pharmaceutical sales were stagnant or declining. Contrary to Allergan's statements this past Friday, Bausch + Lomb's global prescription pharmaceutical business, which represents less than 20% of Bausch + Lomb total sales, grew approximately 6% in the second quarter of 2014, while the U.S. prescription pharmaceutical business grew 17%, as compared to the prior year, with well over 70% of that growth attributable to volume increases. Valeant's decision to contact the authorities also reflects concerns raised by several Canadian Valeant shareholders about comments made about Valeant by Allergan's management during recent meetings with these investors in Canada.
"We can no longer tolerate unjustified attacks on Valeant's business and strongly believe we are obligated to take action to protect Valeant shareholders from Allergan's apparent attempts to mislead investors and manipulate the market for Valeant stock," said J. Michael Pearson, chairman and chief executive officer. "Allergan's continued disparagement of Valeant and repeated questioning of Bausch + Lomb's performance demonstrate their fundamental lack of knowledge about Valeant's business. Valeant has owned Bausch + Lomb for 11 months and the business has performed extremely well, delivering total organic growth of 11% since the acquisition, with over 90% of that growth attributable to volume. With our continued success with Bausch + Lomb, we believe that the Bausch + Lomb transaction is a perfect blueprint for our proposed merger with Allergan.
"Finally, we do not believe that it is productive for either company to conduct due diligence in a public forum and although we have consistently offered Allergan the opportunity to conduct due diligence on our business, its management and board have refused, and have instead chosen to make misrepresentations and false statements about our business," continued Pearson. "Their ongoing tactics reinforce how imperative it is that Allergan stockholders call a special meeting to amend the company's unduly onerous and non-stockholder friendly by-laws, remove six directors, and propose the appointment of new directors, who will thoroughly evaluate Valeant's offer, which represents a strategically compelling and enormously value-creating opportunity for Allergan stockholders at a 50%+ premium to Allergan's unaffected share price."
About Valeant Pharmaceuticals International, Inc.
Valeant Pharmaceuticals International, Inc. (nyse/tsx:VRX) is a multinational specialty pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of dermatology, eye health, neurology and branded generics. More information about Valeant can be found at www.valeant.com .
This communication may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Canadian securities laws. These forward-looking statements include, but are not limited to, statements regarding Valeant's offer to acquire Allergan, its financing of the proposed transaction, its expected future performance (including expected results of operations and financial guidance), and the combined company's future financial condition, operating results, strategy and plans. Forward-looking statements may be identified by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," "target," "opportunity," "tentative," "positioning," "designed," "create," "predict," "project," "seek," "ongoing," "upside," "increases" or "continue" and variations or similar expressions. These statements are based upon the current expectations and beliefs of management and are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results to differ materially from those described in the forward-looking statements. These assumptions, risks and uncertainties include, but are not limited to, assumptions, risks and uncertainties discussed in the company's most recent annual or quarterly report filed with the SEC and the Canadian Securities Administrators (the "CSA") and assumptions, risks and uncertainties relating to the proposed merger, as detailed from time to time in Valeant's filings with the SEC and the CSA, which factors are incorporated herein by reference. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this communication are set forth in other reports or documents that we file from time to time with the SEC and the CSA, and include, but are not limited to:
-- the ultimate outcome of the offer and the second-step merger,
including the ultimate removal or the failure to render
inapplicable the obstacles to consummation of the offer and the
second-step merger described in the offer to exchange;
-- the ultimate outcome and results of integrating the operations
of Valeant and Allergan, the ultimate outcome of Valeant's
pricing and operating strategy applied to Allergan and the
ultimate ability to realize synergies;
-- the effects of the proposed combination of Valeant and
Allergan, including the combined company's future financial
condition, operating results, strategy and plans;
-- the effects of governmental regulation on our business or
potential business combination transactions;
-- the ability to obtain regulatory approvals and meet other
conditions to the offer, including the necessary stockholder
approval, on a timely basis;
-- Valeant's ability to sustain and grow revenues and cash flow
from operations in our markets and to maintain and grow our
customer base, the need for innovation and the related capital
expenditures and the unpredictable economic conditions in the
United States and other markets;
-- the impact of competition from other market participants;
-- the development and commercialization of new products;
-- the availability and access, in general, of funds to meet our
debt obligations prior to or when they become due and to fund
our operations and necessary capital expenditures, either
through (i) cash on hand, (ii) free cash flow, or (iii) access
to the capital or credit markets;
-- our ability to comply with all covenants in our indentures and
credit facilities, any violation of which, if not cured in a
timely manner, could trigger a default of our other obligations
under cross-default provisions; and
-- the risks and uncertainties detailed by Allergan with respect
to its business as described in its reports and documents filed
with the SEC.
All forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by this cautionary statement. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. Valeant undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this communication or to reflect actual outcomes.
ADDITIONAL INFORMATION This communication does not constitute an offer to buy or solicitation of an offer to sell any securities. This communication relates to the exchange offer which Valeant has made to Allergan stockholders. The exchange offer is being made pursuant to a tender offer statement on Schedule TO (including the offer to exchange, the letter of election and transmittal and other related offer materials) and a registration statement on Form S-4 filed by Valeant with the SEC on June 18, 2014 and with the CSA. These materials, as they may be amended from time to time, contain important information, including the terms and conditions of the offer. In addition, Valeant has filed a preliminary proxy statement with the SEC on June 24, 2014, Pershing Square Capital Management, L.P. ("Pershing Square") has filed a definitive solicitation statement with the SEC on July 11, 2014, and Valeant and Pershing Square (and, if a negotiated transaction is agreed, Allergan) may file one or more additional proxy statements or other documents with the SEC. This communication is not a substitute for any proxy statement, registration statement, prospectus or other document Valeant, Pershing Square and/or Allergan have filed or may file with the SEC in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF VALEANT AND ALLERGAN ARE URGED TO READ THE TENDER OFFER STATEMENT, REGISTRATION STATEMENT, AND ANY OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE AS THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Any definitive proxy statement(s) (if and when available) will be mailed to stockholders of Allergan and/or Valeant, as applicable. Investors and security holders may obtain free copies of the tender offer statement, the registration statement and other documents (if and when available) filed with the SEC by Valeant and/or Pershing Square through the web site maintained by the SEC at http://www.sec.gov .
Information regarding the names and interests in Allergan and Valeant of Valeant and persons related to Valeant who may be deemed participants in any solicitation of Allergan or Valeant shareholders in respect of a Valeant proposal for a business combination with Allergan is available in the additional definitive proxy soliciting materials in respect of Allergan filed with the SEC by Valeant on April 21, 2014 and May 28, 2014. Information regarding the names and interests in Allergan and Valeant of Pershing Square and persons related to Pershing Square who may be deemed participants in any solicitation of Allergan or Valeant shareholders in respect of a Valeant proposal for a business combination with Allergan is available in additional definitive proxy soliciting material in respect of Allergan filed with the SEC by Pershing Square. The additional definitive proxy soliciting material referred to in this paragraph can be obtained free of charge from the sources indicated above.
Investors: U.S. Media:
Laurie W. Little Renee E. Soto/Meghan Gavigan
International, Inc. Sard Verbinnen & Co.
Le Cabinet de relations publiques NATIONAL/
NATIONAL Public Relations
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SOURCE Valeant Pharmaceuticals International, Inc.
SOURCE: Valeant Pharmaceuticals International, Inc.
SOURCE: Allergan Inc.
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