Valeant Pharmaceuticals International Inc. made an official statement today, saying that it increased its unsolicited acquisition bid for the Botox manufacturer Allergan Inc. The company added cash to the offer, raising it to about 49.4 billion dollars.
The initial bid made by Valeant on April 22nd was estimated to about 152.89 dollars a share and did not include a contingent value right (CVR). Valeants cash-and-stock new offer is of about 166.16 dollars per share after the company added a CVR of 25 dollars per share in case the experimental eye drug DARPin meets the sales estimates set by the company.
Valeant Pharmaceuticals initial bid was rejected by Allergan and published on its website. Valeant shared today that it considers investing as much as 400 million dollars in the experimental eye drug units development. As reported by the Wall Street Journal, the division is still in trials, but it was called “potentially the biggest single product opportunity that has ever faced the company” by the Chief Executive Officer of Allergan – Mr. David Pyott.
Mrs. Laurie Little, who is a spokeswoman of Valeant Pharmaceuticals International commented yesterday on the process for Reuters, saying: “Valeants business leaders will provide further clarity on our historic, current and future operating performance and address Allergans inaccurate assertions about our business model at our event tomorrow.”
The increased offer of Valeant comes right at a time when it has just sold commercial rights for some of its skin-care products to the largest food company in the world – Nestle SA. The deal is estimated to 1.4 billion dollars and covers several aesthetic dermatology products. As reported by Bloomberg, the Chief Executive Officer of Valeant – Mr. Mike Person said on a conference call that the deal with Nestle “eliminated one more roadblock in terms of our integration with Allergan.”
Valeant Pharmaceuticals International Inc. was losing 3.62% to trade at 125.25 dollars per share in New York, marking a one-year change of +36.44%. According to the information published on CNN Money, the 19 analysts offering 12-month price forecasts for Valeant Pharmaceuticals International Inc. have a median target of 166.00, with a high estimate of 192.00 and a low estimate of 123.00. The median estimate represents a +27.74% increase from the last price of 129.95.