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
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 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 follow. Read more
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
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
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.
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, 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”.