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

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

$500m for Ista

28 March 2012 Business

news image

US eye drug company Bausch & Lomb has signed a cash deal to buy US drugmaker Ista Pharmaceuticals for $9.10 per share, equiva...

Most Read

Isotope effect produces new type of chemical bond

22 October 2014 Research

news image

Evidence emerges for vibrational bond first proposed 30 years ago

DNA 'barcodes' used to track food

30 October 2014 Research

news image

Milk has been successfully tracked as it is turned into cheese and yogurt in an advance that could fight food fraud

Most Commented

Square planar iron complex breaks inorganic dogma

31 October 2014 Research

news image

Unusual spin state could open the door to new and exciting chemistry

Indian U-turn on diabetes drug ban

16 August 2013 News and Analysis

news image

Suspension of cheap and popular medicine reversed but will now come with new safety warnings