Valeant And Allergan Are Not A Match Made In Heaven
Paul Nouri, CFP
Paul Nouri, CFP
Actavis Generics: A 2-Year Ticket To Insolvency?
Graham Osborn • 48 Comments
Graham Osborn • 48 Comments
The Preferred Way To Play The Allergan-Pfizer Break Up
Andrew Walker, CFA • 56 Comments
Andrew Walker, CFA • 56 Comments
Nov. 20, 2015, 2:24 AM
- According to tax experts, it appears that the moves were modest and there was scarce evidence they would stop the world's largest inversion on record.
- There's also some creative thinking taking place. The two are discussing a deal that could have Allergan (NYSE:AGN) technically swallow its larger rival Pfizer (NYSE:PFE), in a tie-up that could be valued at upwards of $140B.
- Previously: U.S. introduces new rules against inversions (Nov. 20 2015)
- Previously: Pfizer and Allergan negotiating break-up fee as high as $4.5B, shrugging off regulatory risk of potential $150B deal (Nov. 19 2015)
Nov. 19, 2015, 11:14 AM
- According to informed sources, Pfizer (PFE -3.9%) and Allergan (AGN -2.6%) are negotiating a break-up fee of 2 - 3% of Pfizer's potential bid of $150B for the BOTOX maker. The upper range of the fee, $4.5B, sends a clear signal that Pfizer does not view the Treasury Department's upcoming anti-inversion regulations as an impediment to a deal.
- Previously: Pfizer said to be near deal to buy Allergan for as much as $380/share (Nov. 18)
- Previously: Treasury Department to announce new anti-inversion tax rules this week; potential acquisition target Allergan off 4% after hours (Nov. 18)
Nov. 18, 2015, 8:30 PM
- Pfizer (NYSE:PFE) is in advanced talks to buy Allergan (NYSE:AGN) for $370-380/share, according to multiple reports.
- The companies are aiming to announce an agreement as soon as Monday, but the U.S. Treasury Department’s letter on tax inversion deals could delay the final agreement and change the terms.
- A deal at $380/share would value AGN at nearly $150B and be the biggest health care deal ever, as well as the largest acquisition this year.
Nov. 18, 2015, 5:06 PM
- The U.S. Treasury Department will announce new tax rules this week to discourage, if not outright ban, tax inversion deals. In a letter to Congress, Treasury Secretary Jack Lew promises "targeted guidance."
- Ireland-domiciled Allergan (NYSE:AGN) is off 4% after hours on increased volume on the perception that potential suitor Pfizer (NYSE:PFE) may get cold feet for a deal if the tax advantages are taken away.
Nov. 16, 2015, 7:49 PM
- In its 13F filing, Soros Fund Management revealed it's bailed out on its Herbalife (NYSE:HLF) bet by liquidating a near 2M-share position in Q3 -- likely at a profit -- and added stakes in Netflix (NASDAQ:NFLX) and Wynn Resorts (NASDAQ:WYNN), as well as boosting Allergan (NYSE:AGN) as its top holding.
- Herbalife is up almost 47% YTD as Soros and Carl Icahn lined up on the long side against bearish investors including Bill Ackman. The Soros fund also reduced its put holdings on the S&P 500, to 836K shares from 2.9M.
- Behind the Allergan add, Soros disclosed a $137.5M investment in PayPal (NASDAQ:PYPL) and ended the quarter with a $32.8M investment in Netflix, as well as $9.9M in Wynn.
- Aside from Allergan, the Soros Fund's biggest holding was in Adecoagro (NYSE:AGRO).
- Overall market value of the Soros holdings dropped to $6.61B, from $10.75B.
Nov. 11, 2015, 5:12 PM
- A U.S. judge rejects arguments made by Valeant (NYSE:VRX), Bill Ackman, and Pershing Square Capital that an investor lawsuit should be dismissed because their actions surrounding the Allergan bid were not fraudulent.
- The lawsuit is from investors who sold Allergan (NYSE:AGN) stock in the two months before the defendants announced a $51B bid for the company, which later became hostile.. Little did investors know, but they may have been selling to Pershing which quietly built up a 9.7% stake in AGN, knowing Valeant was prepping a bid.
- In other Pershing Square news, the hedge fund lost 2.8% of its value in October, and now down 21.2% YTD.
Nov. 6, 2015, 3:09 AM
- In addition to providing tax benefits, a Pfizer (NYSE:PFE) merger with Allergan (NYSE:AGN) could bolster the U.S. drugmaker's growth prospects should it decide to sell or spin off its off-patent portfolio.
- Many Wall Street analysts believe Pfizer will decide to split late next year, as the company already treats its "established products" division and its "innovative" patent-protected medicines business as if they were separate units.
- Such a split would boost the company's profitability, because in-patents drugs command much higher prices that rise every year vs. off-patent medicines that become commoditized and their prices decline.
Nov. 4, 2015, 8:34 AM
- Allergan (NYSE:AGN) Q3 results ($M): Total Revenues: 4,088.9 (+90.1%); Total Product Revenues: 3,512.9 (+112.8%).
- Revenues by Business Segment: CNS: 657.9 (+18.6%); Eyecare: 539.9; GI: 398.6 (+21.9%); Women's Health: 272.8 (+14.2%); Cardiovascular: 155.3 (+12.5%); Infectious Disease: 52.3 (+130.4%); Urology: 69.3 (+159.6%); Other: 245.2 (-13.9%).
- Net Income: 5,231.6 (+601.7%); EPS: 13.29 (+281.9%) (includes discontinued ops); CF Ops: 1,048.2 (+100.7%).
- Key Product Sales: Botox: 604.5; Restasis: 328.3; Namenda XR: 214.5; Lumigan/Ganfort: 157.9; Asacol/Delzicol: 157.2; Bystolic: 155.7; Alphagan/Combigan: 120.8; Linzess/Constella: 117.5.
- Shares are up 1% premarket on average volume.
Nov. 4, 2015, 8:01 AM
- Allergan (NYSE:AGN) enters into an exclusive license agreement with privately held Mimetogen Pharmaceuticals to develop and commercialized its lead product candidate, tavilermide (MIM-D3), for the treatment of dry eye disease.
- The Gloucester, MA-based clinical stage biotech develops small molecule drugs that mimic the effects of neurotrophins, proteins that play an essential role in the survival and differentiation of neurons and help maintain the health and growth of many cells and tissues of the eye. Tavilermide is a small cyclic peptidomimetic of a member of the neurotrophin family called nerve growth factor (NGF). NGF, naturally occurring protein in the eye responsible for the maintenance of corneal nerves and epithelium, activates members of the tumor necrosis factor (TNF) superfamily called the tropomyosin-related kinase (TrkA) receptor and the p75NTR receptor. Tavilermide's unique mechanism of action targeting cell surface Trk receptors induces the production of mucin, a naturally occurring protein in tear film that serves as a lubricant and chemical barrier.
- Under the terms of the agreement, Mimetogen will receive an upfront payment of $50M, milestones and royalties on commercial sales. Allergan will also fund Phase 3 development of tavilermide.
- Chronic dry eye affects 25M Americans.
Nov. 4, 2015, 7:33 AM
- Allergan (NYSE:AGN): Q3 EPS of $3.48 beats by $0.29.
- Revenue of $4.09B (+90.2% Y/Y) beats by $60M.
Nov. 3, 2015, 5:30 PM
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Oct. 30, 2015, 6:46 AM
- Allergan (NYSE:AGN) unit Warner Chilcott agrees to pay $125M to resolve its civil and criminal liability regarding its alleged illegal promotion of the drugs Actonel, Asacol, Atelvia, Doryx, Enablex, Estrace and Loestrin.
- According to the Department of Justice, the company paid kickbacks to healthcare providers to prescribe its drugs in addition to filling out and submitting fraudulent prior authorization requests in order to evade Medicare and Medicaid formulary restrictions. Several executives have been indicted including former president Carl Reichel.
- The civil settlement resolves a whistleblower lawsuit brought by two former employees.
- Warner Chilcott was acquired by Actavis on October 1, 2013 who acquired Allergan on March 17, 2015.
Oct. 29, 2015, 9:13 AM| Oct. 29, 2015, 9:13 AM
Oct. 29, 2015, 8:44 AM
- Results from a Phase 2 clinical trial evaluating Revance Therapeutics' (NASDAQ:RVNC) injectable RT002 against placebo and Allergan's (NYSE:AGN) BOTOX Cosmetic showed RT002's superiority in treating glabellar lines (frown lines). The 268-subject study assessed the safety, efficacy and duration of effect for three doses (20, 40 and 60 units) of RT002, a botulinum toxin A drug candidate.
- At week 4, the primary efficacy measurement of at least a one-point improvement in frown lines based on the IGA-FWS scale for all three doses of RT002 was highly statistically significant compared to placebo (p<0.001). All three doses of RT002 achieved a 100% response rate (minimum of one-point improvement in frown lines) at week 4 versus 95% for BOTOX Cosmetic.
- The 40U dose of RT002 was statistically superior to BOTOX Cosmetic on all three responder definitions for the IGS-FSW duration of effect, with a median duration of 23.6 weeks compared to 18.8 weeks for BOTOX Cosmetic (p=0.020).
- At week 16, more than twice as many participants receiving RT002 40U and 60U maintained none or mild wrinkles per the IGA-FWS scale compared to those receiving BOTOX Cosmetic (p=0.002).
- RTOO2 was safe and well-tolerated across all cohorts.
- The company intends to report final results and meet with the FDA in H2 2016. A Phase 3 is expected to commence shortly thereafter. Revance believes the data will support a six-month duration of effect claim.
- Shares are up 58% premarket on robust volume.
Oct. 29, 2015, 6:31 AM
- Allergan (NYSE:AGN) is up 15% premarket on light volume on the news that it is in talks with Pfizer (NYSE:PFE) about a possible merger. If the deal goes through, it would create the world's largest healthcare firm with a market value of $330B, larger than Johnson & Johnson's (NYSE:JNJ) market cap of $278B.
- A lower tax bill is one of the reasons Allergan is an attractive target for Pfizer considering the Botox maker is domiciled in tax-friendly Dublin. The U.S. government clamped down on tax inversion deals last year which scuppered the AbbVie/Shire deal so it is unclear how this might effect Pfizer's ability to change its domicile.
- Potential Pfizer takeover targets GlaxoSmithKline (NYSE:GSK) and Shire (NASDAQ:SHPG) are both down slightly in premarket trading.
- Update: Both Pfizer and Allergan confirm the commencement of "friendly" discussions regarding a potential combination.
Oct. 28, 2015, 8:46 PM
- Pfizer (NYSE:PFE) and Allergan (NYSE:AGN) are considering a combination, Dow Jones is reporting.
- A tie-up between the two would create an entity with more than $300B in market cap, and would be the biggest announced takeover this year.
- Pfizer recently approached Allergan about a deal, sources tell The Wall Street Journal.
- Price could be an obstacle; on Tuesday Pfizer chief Ian Read says he's seen rival stock prices fall, but “I’m not sure there has been a readjustment in what the investors and leaders of those companies believe those companies are worth in a transactional situation.”
- Both companies' stocks are up more than 11.5% YTD.
- Related: Allergan: Hunting Or Being Hunted? (Oct. 22 2015)
Allergan Plc operates as an investment holding company. It is a global, integrated specialty pharmaceutical company focused on developing, manufacturing and distributing generic, brand, brand generic, over-the-counter and biosimilar products. The company operates through the following segments:... More
Industry: Drug Manufacturers - Other
Country: United States
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