Allergan is working on plans of its own to give investors "most of what they want" instead of the $53 billion hostile bid from Valeant Pharmaceuticals International and top Allergan shareholder Pershing Square, according to the company.
Irvine, CA-Allergan is working on plans of its own to give investors "most of what they want" instead of the $53 billion hostile bid from Valeant Pharmaceuticals International and top Allergan shareholder Pershing Square, according to the company.
Whatever the plan may be, however, Allergan’s shareholders have said the company had better move quickly.
David Pyott, chief executive officer of Allergan told the Financial Times he recognizes that the company-which has $14 billion of cash on its balance sheet-should move now on a deal if it's going to act at all.
"Our stockholders have been fairly clear that if we have a deal that we can do, we should do it soon," he said.
Analysts have surmised that Allergan could make an acquisition of its own in order to thwart Valeant's plans.
According to Fierce Pharma, a non-U.S. acquisition could help the company get the low tax rate that Valeant Chief Executive Officer J. Michael Pearson has promised as part of a potential merger. The newest rumors have centered on Ireland-based Shire, a company Allergan has reportedly targeted in the past. However, whether Allergan will use its extra cash to pursue Shire remains to be seen, and as Deutsche Bank analyst Mark Clark told Bloomberg last month, a deal between the two would not completely make sense outside of providing Allergan with a way to avoid Valeant.
Additionally, Allergan plans to cut costs and end development of some pipeline compounds in an effort to boost profits and lift forecasts, Bloomberg reported.
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