Actavis, Allergan Ink $66B Acquisition Deal
By Lori Clapper
Actavis inked a $66 billion deal to acquire Allergan on Monday, a move which will create a top 10 pharmaceutical company.
Although the deal has been approved by both companies’ board of directors, the business’ shareholders still need to give the final green light before moving forward.
"This combination will greatly enhance our U.S. and international commercial opportunities," Paul Bisaro, Executive Chairman of Actavis, said. "In the U.S., the combination makes us more relevant to an even broader group of physicians and customers. Overseas, it will enhance our commercial position, expand our portfolio and broaden our footprint in Canada, Europe, and Southeast Asia and other high-value growth markets, including China, India, the Middle East and Latin America."
This is not the first leap Actavis has taken this year. In July 2014, Actavis also completed one of the year’s largest acquisitions, buying out Forest Pharmaceuticals for $28 billion. The company estimates that this latest integration of Allergan alone will grow Actavis into a $23 billion healthcare company in 2015.
“This is a dramatic elevation from its $8.7 billion revenues recorded in 2013, the year in which Actavis completed the $5 billion acquisition of Warner Chilcott,” Brent Saunders, CEO and President of Actavis said. “The total outlay for these three deals comes in at just under $100 billion, an incredible level of investment undoubtedly triggered by the financial cushion afforded by Actavis’ inversion maneuver to Ireland, which was engineered following the purchase of Warner Chilcott.”
This deal will also put an end to Valeant Pharmaceutical’s long-time pursuit of Allergan. As recently as October 27, the company had upped its offer for Allergan to more than $200 per share. However, Allergan continually rebuffed Valeant’s offers, saying Valeant undervalued its worth and that an acquisition by Valeant would cripple Allergan’s R&D efforts, USA Today reported.
Saunders will take the helm of the new combined company, while Bisaro will remain Executive Chairman of the Board.