Sunday, March 29th12.9°C
25490
24285

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

25538


Recent Trending




Today's Market
S&P TSX14812.42-57.38
S&P CDNX681.43+1.87
DJIA17712.66+34.43
Nasdaq4891.22+27.86
S&P 5002061.02+4.87
CDN Dollar0.7939+0.0011
Gold1196.30-8.80
Oil48.87-3.00
Lumber282.60-3.60
Natural Gas2.62-0.05

 
Okanagan Companies
Pacific Safety0.125-0.005
Knighthawk0.010.00
QHR Technologies Inc1.50+0.00
Cantex0.03-0.01
Anavex Life Sciences0.219+0.009
Metalex Ventures0.04-0.01
Russel Metals24.50-0.18
Copper Mountain Mining1.13+0.00
Colorado Resources0.125+0.010
ReliaBrand Inc0.006-0.001
Sunrise Resources Ltd0.045+0.000
Mission Ready Services0.255+0.020
Decisive Dividend Corporation1.80+0.02

 





FEATURED Property
2238104330 Hillaby ave
$475,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


CRA Notice of Assessment

Many Canadians rush to file their taxes on time each year and don’t think about it until the next year. One of the most overlooked notices received from the CRA annually is the annual Notice of ...


Medical confidential?

If ICBC asks your doctor for your information you may wonder: Can ICBC ask my doctor for my medical information? Can ICBC request a medical report from my doctor without my consent? What is ICBC entit...


Stay out of sales limbo!

Have you ever had a series of good meetings with a prospect … gathered all kinds of information … and given what you thought was a great presentation … only to receive a response ...

_



25482




Member of BC Press Council


25342