At the end of January, I wrote an article asserting that pharmaceutical companies who were realizing most of their growth through acquisitions, and not including the costs inherent with those acquisitions, were in the throes of a bubble in their stock prices. Three months later, on April 21, one of the companies highlighted in the article, Valeant Pharmaceuticals (NYSE:VRX), in partnership with hedge fund Pershing Square Capital, proposed a hostile bid of Allergan (NYSE:AGN). Reportedly, Allergan management has been reluctant to engage in talks with Valeant because of the company's stated goal of achieving $2.7 billion in synergies, or about 75% of Allergan's current operating infrastructure.
Shortly after the announcement came out, the aforementioned hedge fund...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|