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

Coated nanoparticles show Alzheimer's promise

12 September 2014 News and Analysis

news image

Gold nanoparticles functionalised with amino acid polymer inhibit the growth of amyloid fibres associated with neurodegenerat...

First flexible graphene display paves the way for folding electronics

11 September 2014 News and Analysis

news image

Team behind the bendy e-reader display hope to have a full colour graphene-based smartphone style screen within a year

Most Commented

Does life play dice?

3 September 2014 The Crucible

news image

Philip Ball wonders whether life evolved to exploit quantum phenomena, or if it’s just in our nature

The trouble with boycotts

29 August 2014 Critical Point

news image

Cutting academic ties with a censured state can do more harm than good, says Mark Peplow