Allergan: Business As Usual Following New Valeant Offer
06/06/2014
At Allergan, executives say it is business as usual, even as the board reviews a hefty new offer from Valeant. Valeant last Friday increased its offer to Allergan by $14 per share, “subject to prompt good-faith discussions on a merger agreement.” The new bid values Allergan at about $180 a share and includes the possibility of an additional $25 a share, depending on the future revenue of Allergan's DARPin drug candidate for wet AMD.
This week William Ackman's Pershing Square filed a preliminary proxy with the Securities and Exchange Commission to start the process for the shareholder meeting to appoint new members to Allergan's board. Pershing plans to solicit for a special meeting starting June 30, expecting shareholders to consider the proxy for the meeting as early as August 7. However, Allergan would be able to delay the meeting until November. Allergan has confirmed receipt of the revised offer and urged shareholders to reserve any action until the board makes a recommendation.
For Allergan it is business as usual, hosting its planned national sales meeting in Philadelphia this week. At that meeting, I spoke with Philippe Schaison, Corporate Vice President & President, U.S. Medical for Allergan, Inc. Mr. Schaison said the company continues to operate as usual, noting, “We are here to provide the best service to customers.”
Mr. Schaison shared that Allergan's support of innovation—noted in more than 500 recently publicized customer support letters—was recognized this week by the Prixe Galien Foundation. The foundation nominated three Allergan products for the Prixe Galien USA award. The Prixe Galien, founded by a body of Nobel Laureates and humanitarian Elie Weisel, recognizes innovation in medicine. He suggests the nomination validates Allergan's investment in R&D.
“We're spending roughly a billion dollars a year to bring those innovations to the market. The best example this year, we launched three major technologies. The first one is Voluma,” Mr. Schaison said. “We've launched Seri, a new scaffold for plastic surgery, and line extension or new indication, it's the Crow's feet indication for Botox Cosmetic. And now Botox is the only neurotoxin with that type of indication.
“So it shows, you know, how much we value innovation. And you need to spend that kind of money to develop and offer this disruptive technology to physicians and to patients.”
Obviously, physicians and the investment community continue to monitor this story. We'll bring you updates as they become available.
This week William Ackman's Pershing Square filed a preliminary proxy with the Securities and Exchange Commission to start the process for the shareholder meeting to appoint new members to Allergan's board. Pershing plans to solicit for a special meeting starting June 30, expecting shareholders to consider the proxy for the meeting as early as August 7. However, Allergan would be able to delay the meeting until November. Allergan has confirmed receipt of the revised offer and urged shareholders to reserve any action until the board makes a recommendation.
For Allergan it is business as usual, hosting its planned national sales meeting in Philadelphia this week. At that meeting, I spoke with Philippe Schaison, Corporate Vice President & President, U.S. Medical for Allergan, Inc. Mr. Schaison said the company continues to operate as usual, noting, “We are here to provide the best service to customers.”
Mr. Schaison shared that Allergan's support of innovation—noted in more than 500 recently publicized customer support letters—was recognized this week by the Prixe Galien Foundation. The foundation nominated three Allergan products for the Prixe Galien USA award. The Prixe Galien, founded by a body of Nobel Laureates and humanitarian Elie Weisel, recognizes innovation in medicine. He suggests the nomination validates Allergan's investment in R&D.
“We're spending roughly a billion dollars a year to bring those innovations to the market. The best example this year, we launched three major technologies. The first one is Voluma,” Mr. Schaison said. “We've launched Seri, a new scaffold for plastic surgery, and line extension or new indication, it's the Crow's feet indication for Botox Cosmetic. And now Botox is the only neurotoxin with that type of indication.
“So it shows, you know, how much we value innovation. And you need to spend that kind of money to develop and offer this disruptive technology to physicians and to patients.”
Obviously, physicians and the investment community continue to monitor this story. We'll bring you updates as they become available.