Valeant loses out as Actavis wins Botox maker
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