Valeant launches hostile bid for Allergan


Acquisitive US drugmaker Valeant has lined up its next takeover target: Botox provider Allergan. Valeant has taken its proposal direct to shareholders, but Allergan has activated a ‘poison pill’ defence to buy time to consider any deals.

If it goes ahead, the deal currently values Allergan at something like $47 billion (£28 billion). But there is likely to be a period of negotiations, which could push the price higher. Allergan’s board has indicated that it is not averse to a potential deal with Valeant, but doesn’t want to be bullied into a quick decision.

Valeant has a history of buying companies with well-established product lines, such as last year’s acquisition of eyecare specialists Bausch & Lomb, then squeezing extra value out of those products by reducing costs. Allergan’s Botox (onabotulinum toxin A) and cosmetic implant ranges fit well with that model, since patients generally pay for the treatments privately. 

Further analysis of this and other deals can be found on the Chemistry World blog


Related Content

Actavis rescues Allergan with $66 billion deal

24 November 2014 Business

news image

Deal ends takeover fight with Valeant – but Actavis must still be ‘fairly ruthless’ to justify the high price

Takeover battle pushes Allergan to cut R&D jobs

28 July 2014 Business

news image

Besieged by serially acquisitive Valeant, the Botox maker will lay off 1500 staff to propel earnings growth

Most Read

Sun rises on new solar route to hydrogen

27 February 2015 Research

news image

Photocatalyst has solar-to-hydrogen conversion efficiency of 2% and points way to cheap production of the gas

The mothers of invention

24 February 2015 Managing Change

news image

Nina Notman profiles four researchers successfully balancing an academic career with family life

Most Commented

Sun rises on new solar route to hydrogen

27 February 2015 Research

news image

Photocatalyst has solar-to-hydrogen conversion efficiency of 2% and points way to cheap production of the gas

Hepatitis C drug patent challenged in Europe

19 February 2015 Business

news image

Campaign group says Gilead’s expensive blockbuster sofosbuvir is not innovative enough to warrant a patent