Allergan Inc. is an American based global pharmaceutical company which develops and manufactures products on ophthalmic pharmaceuticals, dermatology, neuroscience, urology and cosmetics. Founded in 1948, it has been one of the popular companies in the pharmaceutical industry which has affected the markets by its performance. The company is most famous for developing the Botox drug which many pharmaceutical giants are chasing in recent times. Valeant Pharmaceuticals was on the verge to sign Allergan despite that Allergan was not in favor to sell its Botox drug, but Actavis rescued Allergan with a $66 billion offer.
Botox developer Allergan recently accepted a block buster offer of $66 billion from Actavis which ended a hostile pursuit by activist investor William Ackman and Valeant Pharmaceuticals International Inc. for over seven months.
According to Reuters, Actavis PLC., offered $219 per share in cash and stock to Allergan which amounted to billions more than what Valeant Pharmaceuticals was prepared to pay. William Ackman denied commenting anything when Actavis came to sign Allergan with a block buster bid. Moreover, Valeant itself said that it would walk away from its Allergan campaign shortly after the deal was announced.
However, Actavis has planned to replace most of the Allergan executives after the Actavis-Allergan deal. According to Bloomberg, “The exception is Douglas Ingram, Allergan’s president and former head of its Europe, Africa and Middle East unit. He’ll serve as a special adviser to Actavis Chief Executive Officer Brent Saunders.”
However it is still not confirmed about the role that will be given to the current CEO of Allergan, David Pyott. The spokesperson for Actavis David Belian said that the role is not yet confirmed for David Pyott but he may join the Actavis board for the time being.
According to a statement by company officials, it is believed that “The deal is expected to close in the second quarter of next year, and will reorganize the combined company into three separate units: International Brands, Branded Pharma and Allergan Medical. The company plans to invest more than $1 billion in research and development under a combined department led by Actavis’s C. David Nicholson.”