Posts tagged 'Valeant'

A duly diligent committee

Valeant, the somewhat troubled pharmaceutical company which has faced questions about the quality of its public relations, among over things:

We appreciate the efforts of the Ad Hoc Committee and its independent advisors over the past five months. After conducting more than 70 interviews and reviewing over one million documents, the Ad Hoc Committee has not identified any additional items requiring restatements beyond those matters previously disclosed.

A million documents in five months works out at about one every 13 seconds. Read more

Of mind and management, or how tax works

‘A company resides … where its real business is carried on … and the real business is carried on where the central management and control actually abides’.

So said Lord Loreburn in the House of Lords in 1906, on what would become a key case for British law concerning where corporate taxes are due.

At a moment when attention is focused on money passing through Panama on its way to other sunny locations, a quick reminder that common law jurisdictions tend to focus on where decisions about the money are taken when it comes to tax obligations, rather than the location of the cash itself. Read more

Just one bit of the Valeant disclosures we are struggling to understand…

Can you help? Read more

“The Board requested that former chief financial officer Howard Schiller tender his resignation as a director, but Mr. Schiller has not done so.” (UPDATED)

Back in October, Bill Ackman asked the question of Valeant chief executive Michael Pearson:

Mike, is there any fraud going on at the company?

We got a fuller answer on Monday. Click for the 8-K: Read more

A Valeant reminder

It’s an unsustainable business model aimed at bilking insurance companies.

The latest Valeant market crash was still ongoing at pixel, the stock being off 45 per cent or so at $38.

You could pin this simply on the dreadful Q4s and accompanying 2016 guidance: revenues to fall 12 per cent. Read more

What counts as operating cash flow at Valeant – Update

Valeant is getting plenty of attention due to its association with Pershing Square, one of its largest shareholders which also helped the pharmaceutical company try to buy Allergan last year. (Bill Ackman has full confidence in Valeant’s chief executive, Mike Pearson. Goldman Sachs… less so.)

Thoughts have turned to Valeant’s cash flow once ties to Philidor, a controversial specialty pharmacy responsible for 6 per cent of sales in the first 9 months of this year, are severed.

One sometimes-overlooked aspect to note: the circa $340m $290m* contribution to operating cash flow last year from that attempt on Allergan. Read more

The next Berkshire Hathaway in action

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Crisis PR, compare and contrast — Valeant and Theranos

You’ll hopefully know the news context here. Thanks to Hempton et al, Canada’s Valeant stands accused of stuffing its drug sales channel through a shadowy network of “specialist pharmacies”; Silicon Valley’s Theranos, meanwhile, has found itself on the end of a detailed WSJ investigation into claims that, essentially, its supposedly revolutionary finger-prick drug testing kit doesn’t work. Read more

Saluting the Southern Investigative Reporting Foundation (and also a certain hedge fund blogger…)

You can read the brochure explaining what this young but nevertheless worthy institution set out to do when founded in 2012.

Or you can just look at what it’s gone and done to Valeant Pharmaceuticals International… Read more

Valeant and the IRS

Buried in page 27 of Valeant’s recent quarterly regulatory filing was some potentially significant news: the pharmaceutical company, currently pursuing a $53bn hostile takeover of Allergan, is under investigation by the Internal Revenue Service.

According to people familiar with the situation a number of individuals, including former senior executives, have raised concerns with the IRS, which has been holding an inquiry into the company for the last two years. The probe by the Large Business and International division of the agency has included an examination of Valeant’s tax arrangements following the 2010 merger with Canadian Biovail, a so-called “inversion” deal that enabled the former US company to dramatically reduce its tax bill. Read more

Matchmaking Shire, again

We believe an AGN bid for SHPG is imminent and more attractive than VRX’s proposal.

So says John T. Boris, a managing director at SunTrust Robinson Humphrey. His is not a new idea. Shire has long been seen the obvious poison pill for Allergan, the Botox maker, which could use more bulk to fight off a $53bn hostile approach from Valeant. Read more

Valeant facts

Valeant Pharmaceuticals To Hold Conference Call On Tuesday, June 17, 2014 To Correct Recent Misrepresentations

LAVAL, Quebec, June 13, 2014 /PRNewswire/ — Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX) today announced that it will conduct a fact-based presentation to refute recent misleading assertions made by Allergan, Inc. (NYSE: AGN) and others, as well as answer additional investor questions, on June 17, 2014.

Cage rattled, facts to followRead more

Valiant Valeant

Bill Ackman, founder and showman in chief of Pershing Square is adding a new string to his bow on Monday morning as co-host of CNBC’s squawk box for an hour. He’s joined by Michael Porter, professor at the Harvard business School, to discuss the mooted deal where he has teamed up with Valeant to purchase Allergan and the changing structure of the pharmaceutical industry.

The two have been a CNBC double act before, but it seems a good a time as any to dust off the stale sell case against Valeant that is still floating around. In short, it is a company that only makes a profit after a lot of accounting adjustments.

In case you were wondering, this has been a painful one to be short for most of the last year or so. Read more

Teva moves in on Japan’s nascent generics boom

The one certainty about a country with a rapidly greying population is that its demand for drugs — more and cheaper ones — will almost certainly grow.

Amid the latest acquisition frenzy taking hold in the world of big pharma, Japan has captured a substantial amount of attention — not least the final stages of talks for one of the biggest pharma deals in recent history: Takeda Pharmaceuticals’ $14bn bid for Swiss drugmaker Nycomed. Read more

Teva agrees $6.8bn Cephalon deal

Israel-based Teva Pharmaceuticals has agreed a $6.8bn deal with Cephalon, trumping a hostile approach for the US biotech group from Canada’s Valeant, as it seeks to boost its branded specialty drugs business reports the FT. Teva said on Monday it would pay $81.50 a share in cash for Cephalon, versus Valeant’s $73 offer. Teva is known as a maker of generics but also generates income from patented drugs led by Copaxone, a multiple sclerosis drug. The deal will increase the share of Teva’s business from branded drugs to 36% from about 28% last year. UBS analysts said that investors, wary of Teva’s “aggressive moves” into branded drugs through M&A, could view this deal in the same light Cephalon’s stock rose 4% at lunchtime on Monday to $80.30. Teva’s deal represents a 39% premium to Cephalon’s price before the Valeant bid. DealBook notes that the deal comes at a particularly critical time for Teva.

Valeant makes $5.7bn hostile bid for Cephalon

Canada’s Valeant, the acquisitive speciality pharmaceutical company, is turning its sights on US drugmaker Cephalon, with a $5.7bn hostile offer to acquire the biotech company, reports the FT. The $73-a-share bid represents a 24 per cent premium over Tuesday’s closing price and 29 per cent over Cephalon shares’ 30-day trading average, Reuters says. The offer comes after a month of failed takeover discussions with the Cephalon board, Valeant said, adding that it would begin talking to the company’s shareholders next week, and that the offer may be raised if due diligence is allowed. Cephalon sees its patent on a leading product run out in 2012, leading Valeant to argue it can wring value out of the company by cutting spending, the WSJ reports.

Valeant in hostile bid for Cephalon

Valeant, the speciality US pharmaceutical company, has launched a $5.7bn hostile offer to acquire US biotech company Cephalon, reports the FT. The $73-a-share cash proposal, representing a 29% premium to Cephalon’s average share price over the past month, follows Valeant’s attempts to engage Cephalon’s management and board in takeover discussions over the past month. Valeant, formed last year from an ambitious reverse takeover by Canada’s Biovail, said on Tuesday it would finance the deal with debt and begin nominating its own directors to the Cephalon board. Mike Pearson, Valeant’s chairman and CEO, told the FT the company did not want to get ‘tied up in a long process’. DealJournal notes that with another hostile bid for a biotech company, “it’s just like 2010 all over again”.