Valeant loses out as Ac­tavis wins Bo­tox maker

The Star Early Edition - - COMPANIES - John Biers

AC­TAVIS an­nounced yes­ter­day plans to ac­quire Bo­tox maker Al­ler­gan for $66 bil­lion (R730bn), cre­at­ing a global phar­ma­ceu­ti­cal be­he­moth and prob­a­bly end­ing the ag­gres­sive pur­suit of Al­ler­gan by Canada’s Valeant Phar­ma­ceu­ti­cals In­ter­na­tional.

The com­bi­na­tion cre­ates a heavy­weight in oph­thal­mol­ogy, neu­ro­sciences and med­i­cal aes­thet­ics that will be among the 10 big­gest phar­ma­ceu­ti­cal com­pa­nies by sales, ac­cord­ing to a Ac­tavis-Al­ler­gan state­ment.

Valeant, which had joined with New York ac­tivist share­holder Wil­liam Ack­man in chas­ing Al­ler­gan, said it would not match Ac­tavis’s of­fer of $219 a share.

“We have seen the an­nounce­ment that Al­ler­gan and Ac­tavis have made, and while we will re­view any such agree­ment in de­ter­min­ing our course of ac­tion, Valeant can­not jus­tify… pay­ing a price of $219 or more per share,” Valeant chief ex­ec­u­tive Michael Pear­son said.

The pre­mium in yes­ter­day’s deal is a huge in­crease from the $46bn that Valeant of­fered Al­ler­gan in April. Valeant sub­se­quently raised the of­fer twice.

The of­fer ran into head­winds in Septem­ber when news re­ports said Al­ler­gan was in talks with Ac­tavis.

Ac­tavis and Al­ler­gan said the deal would re­sult in $1.8bn in an­nual cost sav­ings, im­proved mar­ket­ing suc­cess and ex­panded reach into key growth mar­kets. – Sapa-AFP

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