Allergan Inc. and Inamed Corp. entered a definitive agreement and plan of merger. For each outstanding common share of Inamed, Allergan will exchange either $84 in cash or 0.8498 of a share of Allergan common stock. The exchange began on Nov. 21, 2005, and will expire Jan. 9, 2006 (subject to extension or early termination).
"The signing of the merger agreement by both parties marks a significant milestone in the process of combining the two companies and delivering on our vision to create a leading world franchise in the high-growth medical aesthetics arena," said David E.I. Pyott, Allergan's chairman of the board, president, and chief executive officer.
Inamed also entered into a termination agreement with Ipsen Ltd., so that Ipsen will retain its rights to botulinum toxin type A (Reloxin). Through the agreement, both companies release each other of distribution obligations for the product.