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

US government science institute's one time police chief linked to campus meth lab

31 July 2015 News and Analysis

news image

Explosion injuring a member of the National Institute of Standards and Technology's security force uncovered methamphetamine ...

Antifreeze polymer protects cells as they thaw

29 July 2015 Research

news image

Simple synthetic polymer found to enhance cryopreservation of red blood cells by inhibiting ice crystal growth

Most Commented

(–)-Jiadifenolide

27 July 2015 Organic Matter

news image

BRSM wonders what makes a route so good it becomes the last total synthesis of a complex target

Butterfly population collapse prompts lawsuit against EPA

5 March 2015 News and Analysis

news image

US agency criticised for failing to investigate link between glyphosate and the dwindling monarch butterfly population