Monday, March 2nd-1.4°C
25405
22952

Valeant joins activist investor Ackman in bid for Botox maker Allergan

Shares in Valeant Pharmaceutical International Inc. (TSX:VRX) (NYSE:VRX) soared in after-hours trading in New York on Monday after the Quebec-based company announced it had teamed with activist investor Bill Ackman in what looked to be a US$40-billion bid for Botox maker Allergan.

Valeant said intends to propose a merger with Allergan using a combination of Valeant stock and cash.

The transaction size was not been disclosed, but Valeant said it expected the cash portion of the deal to be at least US$15 billion.

In a separate filing, Ackman's Pershing Square Capital Management said it owns a 9.7 per cent stake in Allergan worth $4.1 billion. Ackman's stake would make a Allergan deal worth around US$40 billion.

Allergan said it had no comment on the bid late Monday.

On the New York Stock Exchange, Valeant shares were up $11.48 or 9.11 per cent at US$137.49 in after-hours trading after having risen $3.96 or 3.24 per cent to $126.01 in regular trading Monday.

On the Toronto Stock Exchange, Valeant shares had closed up $4.31 or 3.21 per cent at C$138.76.

Allergan's stock (NYSE:AGN) jumped $30, or 21.13 per cent, to $172 in after-hours trading after having closed up $8.08 or 6.03 per cent at $142.

Word of the latest takeover bid follows Valeant's US$8.7-billion acquisition last summer of eye care company Bausch and Lomb, which gave it a major share in the market for contact lenses, eye drugs and eye surgical devices.

CEO Michael Pearson said earlier this year that the speciality pharmaceutical company would continue to see acquisitions in hopes of becoming a global giant even as it was counting on anti-aging treatments and other aspects of its esthetics business to help drive profits.

Valeant's esthetic business, including lip fillers and laser devices to remove wrinkles and fat, grew more than 30 per cent in both the United States and Canada last year, while the market itself was expanding in at least the high single digits. In December 2012, it acquired dermatology products maker Medicis Pharma for US$2.6-billion.

Allergan, based in Irvine, Calif., has long been one of the star performers in the specialty pharmaceutical sector, reporting revenue of US$6.3 billion last year, up 12 per cent from 2012. The company's growth has been driven by expanding use of its blockbuster product Botox, combined with a broad offering of eye care drugs, skin care formulas and breast implants.

Last year Botox sales rose 12 per cent to nearly $2 billion. First introduced in 1989, the injectable drug is best known for its ability to smooth wrinkle lines on aging foreheads. But over the years Allergan has racked up more than a half-dozen other approved uses for Botox, including treatment for neck spasms, eye muscle disorders and migraine headaches.

Valeant's full-year revenue in 2013 was C$5.77 billion, a figure expected to increase to between C$8.2 billion and $8.6 billion this year, even without the Allergan deal.

— With files from The Associated Press

The Canadian Press


Read more Business News

25103


Recent Trending




Today's Market
S&P TSX15234.34-6.82
S&P CDNX706.73+5.80
DJIA18132.70-81.72
Nasdaq4963.528-24.362
S&P 5002104.50-6.24
CDN Dollar0.7999+0.0004
Gold1203.00+6.10
Oil51.07-1.07
Lumber297.20+1.20
Natural Gas2.895-0.007

 
Okanagan Companies
Pacific Safety0.12+0.005
Knighthawk0.010.00
QHR Technologies Inc1.55-0.03
Cantex0.035-0.005
Anavex Life Sciences0.190.00
Metalex Ventures0.035-0.005
Russel Metals25.38+0.08
Copper Mountain Mining1.30+0.04
Colorado Resources0.15+0.015
ReliaBrand Inc0.008-0.0007
Sunrise Resources Ltd0.05+0.015
Mission Ready Services0.235+0.025

 



25194

FEATURED Property
17869501916 Boone Court, Kelowna, BC
10090167 bedrooms
$780,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Creating your retirement vision

A vision means different things to different people. To the head of a large corporation, it’s the ability to chart a course that will deliver success (think Steve Jobs and Apple), to a shaman, i...


Are you asking the right questions?

Have you ever had this happen to you? You are in the middle of your second or third good discussion with a prospect and everything seems to be going great. The prospect seems engaged and happy to work...


It's OK to say 'I'm sorry'

Photo: ContributedStand-up comedians and sitcoms have been making fun of Canadians for being polite as long as I can remember. Being known for our niceness is certainly not a bad thing and I wish more...

_








Member of BC Press Council


24681