Sector News

Actavis ready to thwart Valeant with $60B-plus Allergan buyout: Bloomberg

November 12, 2014
Life sciences
Heads up, Valeant. Actavis is reportedly in talks to snatch up Allergan–and word is it could happen quickly.
 
The Dublin-based white knight could work out a deal for Valeant’s hostile bid target in as few as two weeks, Bloomberg’s sources say. There’s just one price hurdle standing in the way: Allergan is seeking more than $210 a share, while Actavis is looking to pay closer to $200–a difference of about $3 billion.
 
Assuming the companies get that gap worked out quickly, they may be able to reach a deal this month. That would be ahead of a Dec. 18 special shareholder meeting, at which activist investor Bill Ackman aims to replace most of Allergan’s directors with a slate more friendly to Valeant’s bid. But there’s no guarantee Actavis and Allergan can pull off an agreement before then, the news services’ sources say.
 
Don’t count Valeant out just yet, though, Sterne Agee analyst Shibani Malhotra said in a note to investors. While she sees an Actavis/Allergan combo as “a probable outcome,” she also expects Canada-based Valeant “to increase its bid for Allergan in the near term.”
 
Indeed, Valeant CEO J. Michael Pearson has said his company would hike its offer if it needed to–past $200 a share, in fact. And earlier this week, Ackman suggested Allergan’s board open up the company to an auction between Actavis and Valeant, noting that he believes “Valeant can pay substantially more for Allergan” than its competitor–perhaps because Valeant would be more eager to cut costs after the close.
 
But Ackman and Valeant may be lining up their next move, just in case they don’t land the California drugmaker. Ackman has bought up an 8.5% stake in animal health giant Zoetis, and sources tell The Wall Street Journal Ackman may pressure the Pfizer spinoff to sell itself to Valeant if the Allergan bid fails.
 
By Carly Helfand
 

comments closed

Related News

May 21, 2022

As monkeypox cases emerge in US and Europe, Bavarian Nordic inks vaccine order

Life sciences

A monkeypox outbreak is emerging in the U.S. and Europe, and at least one country is amping up countermeasure preparedness. Bavarian Nordic has secured a contract with an unnamed European country to supply its smallpox vaccine, called Imvanex in Europe, in response to the emergence of monkeypox cases, the Danish company said Thursday.

May 21, 2022

Moderna chairman Afeyan defends hiring practices after CFO debacle: report

Life sciences

Moderna’s recent chief financial officer debacle—in which Jorge Gomez departed on his second day on the job—raised questions about the company’s hiring process given its rush to global biopharma prominence. The most obvious one: How was it possible for Gomez to be hired when he was under investigation by his previous employer, Dentsply Sirona of Charlotte, N.C.

May 21, 2022

Merck to pay up to $1.4B in cancer deal with Kelun, but details are scarce

Life sciences

Merck & Co. is plucking a cancer project from the branch of Chinese-based Kelun Pharmaceutical for up to $1.4 billion, but details from the New Jersey-based Big Pharma have been hard to come by. The deal, first disclosed Monday on the Shenzhen stock exchange, has Merck handing over $47 million in upfront cash in exchange for ex-China rights to a “macromolecular tumor project.”