Valeant Improves Offer to Allergan; Valeant to Sell Products to NestleBy
The specialty pharmaceutical company Valeant Pharmaceuticals International Inc. has raised its offer to acquire the specialty pharmaceutical company Allergan Inc. The new proposal is valued at a total of $166.16 a share, up from Valeant's initial unsolicited bid of $152.89 a share, or $45.7 billion, in which Valeant made in April 2014. Valeant also upped the cash consideration of the deal by $10.00 per share to $58.30 per share and added a contingent value right for sales of DARPin, Allergan’s developmental drug candidate to treat age-related macular degeneration..
In April 2014, Valeant Pharmaceuticals made an approximate $45.7 billion unsolicited bid for Allergan, which was later rejected by Allergan’s board of directors in May 2013. In the initial offer, Valeant submitted a merger proposal to the board of directors of
Under the new offer, Valeant increased the cash consideration by $10.00 per share to $58.30 a share, an approximate 21% increase. It also added a contingent value right (CVR) for DARPin sales of up to
In a letter to Allergan Chairman and CEO
In response, Allergan said it “will carefully review and consider the revised proposal and pursue the course of action that the board believes is in the best interests of the company and all of its stockholders,” said the company in a statement issued May 28, 2014. “No action by Allergan’s stockholders is required at this time.”
A day before, on May 27, 2014, prior to Valeant’s revised offer, Allergan filed an investor presentation with the US
In that presentation, Allergan said that it believes that Valeant’s organic sales growth, which it said is primarily driven by price increases, is overstated based on changing definitions and classifications with no disclosure of key products.”The pro-forma revenue growth from Valeant’s
Allergan further raised concerns over Valeant’s ability to execute sales promotion of acquired Allergan products. “Valeant’s limited experience with large, global scale products represents a material execution risk attempting to grow Allergan’s categories and launching significant new large products through existing channels.
In a separate move, Valeant announced that it had agreed to sell all rights to Restylane, Perlane, Emervel, Sculptra, and Dysport owned or held by Valeant for
Source: Valeant Pharmaceuticals International (revised offer), Valeant (Nestle deal), Allergan (rejection of revised offer) and Allergan (investor presentation).