Botox maker swallows ‘poison pill’ in defence
Acquisitive US drugmaker Valeant has lined up its next takeover target: Botox provider Allergan. Valeant has taken its proposal direct to shareholders, but Allergan has activated a ‘poison pill’ defence to buy time to consider any deals.
If it goes ahead, the deal currently values Allergan at something like $47 billion (£28 billion). But there is likely to be a period of negotiations, which could push the price higher. Allergan’s board has indicated that it is not averse to a potential deal with Valeant, but doesn’t want to be bullied into a quick decision.
Valeant has a history of buying companies with well-established product lines, such as last year’s acquisition of eyecare specialists Bausch & Lomb, then squeezing extra value out of those products by reducing costs. Allergan’s Botox (onabotulinum toxin A) and cosmetic implant ranges fit well with that model, since patients generally pay for the treatments privately.
Further analysis of this and other deals can be found on the Chemistry World blog