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
Wed, Jul. 27, 3:51 PM
- The U.S. Federal Trade Commission (FTC) accepts the proposed consent order related to Teva Pharmaceutical Industries' (TEVA +1.4%) acquisition of Actavis Generics (AGN +4.4%). The transaction, now valued at ~$35B, should close next week.
- According to Teva, the deal will be 14% accretive to 2017 non-GAAP EPS, increasing to 19% in 2019. The combined firm should generate more than $25B in free cash flow through 2019.
- Read now A Prescription For Teva Shareholders On Actavis Generics
Wed, Jul. 13, 7:30 AM
- In a regulatory filing, Allergan (NYSE:AGN) reports that it and (NYSE:TEVA) agreed to extend the outside date of their deal to October 26 from July 26 (this is the date that the closing must occur). On the conference call this morning, management stated that the close is imminent, however.
- Other amendments include increasing the base working capital adjustment by at least $650M (up to $800M under certain circumstances), adding Actonel (authorized generic) and Carafate (authorized generic) to the list of excluded products and a reduction in the cash consideration to be paid by $221M.
Tue, Jun. 21, 7:54 AM
- Impax Laboratories (NASDAQ:IPXL) acquires a group of 15 generic drugs from Teva Pharmaceutical Industries (NYSE:TEVA) and affiliates of Allergan (NYSE:AGN) for total consideration of $586M. The transaction also includes the return of the rights to the pending abbreviated New Drug Application (ANDA) for a generic version of Johnson & Johnson's (NYSE:JNJ) Concerta (methylphenidate hydrochloride) to Impax.
- The deal will be immediately accretive to Impax's earnings. The group generated ~$150M in sales and ~$100M in gross profit in 2015. Per IMS, the U.S. market for the portfolio is ~$3.1B.
- Impax will finance the acquisition with cash on hand and $400M in term loans.
- Teva divested the products to satisfy U.S. Federal Trade Commission conditions for its planned acquisition of Allergan's generics business.
Mon, Jun. 13, 3:14 AM
- Looking to bolster its U.S. business, Dr. Reddy's Laboratories (NYSE:RDY) has agreed to buy eight generic medicines from Teva Pharmaceutical (NYSE:TEVA) and Allergan (NYSE:AGN) for $350M in cash.
- The sale to India's second-largest drugmaker could put Teva a step closer to winning U.S. antitrust clearance for its $40.5B acquisition of Allergan's generic drugs portfolio, and is contingent on the deal's approval.
Fri, May 6, 2:10 AM
- Teva Pharmaceutical (NYSE:TEVA) is finalizing as much as $2B in asset sale agreements to win U.S. antitrust clearance for its $40.5B acquisition of Allergan's (NYSE:AGN) generic drug portfolio, according to Reuters.
- Teva said in March that a regulatory review of the deal by the Federal Trade Commission was taking longer than anticipated, and that it expected the transaction to be completed by June.
Thu, Apr. 21, 5:30 PM
- Allergan (NYSE:AGN) acquires privately held Boston, MA-based Topokine Therapeutics, a developer of topical medicines that act on subcutaneous fat to contour the face and body without surgery or injections. Its lead product candidate is XAF5 Ointment, in Phase 3 development for the treatment of bags under the eyes (steatoblepharon).
- Under the terms of the deal, Topokine will receive an upfront payment of $85M plus unspecified milestones related to XAF5.
Fri, Apr. 15, 3:44 PM
- Allergan (NYSE:AGN) is the purported suitor.
- SGYP +6.5%
- Now read: Why The Termination Of The Allergan-Pfizer Deal Isn't Too Bad After All (April 6)
Wed, Apr. 6, 7:26 AM
- Although disheartened that its merger with Pfizer (NYSE:PFE) is dead, Allergan (NYSE:AGN) is bullish on its standalone profile. CEO Brent Saunders says, "While we are disappointed that the Pfizer transaction will no longer mover forward, Allergan is poised to deliver strong, sustainable growth built of a set of powerful attributes. Our pipeline is one of the strongest in the industry, loaded with 70 mid-to-late-stage programs including 14 expected approvals and 16 regulatory submissions in 2016 alone."
- Based on a preliminary review of the proposed regulations from the U.S. Treasury Department, the company believes they will not have a material impact on its standalone tax rate. Q1 earnings will be reported no later than May 10. During the conference call, management will update investors on its plans to simplify the company's operations after it divests its generics business to (NYSE:TEVA).
- Allergan will host a brief conference call this morning at 10:00 am ET to discuss its standalone prospects.
- Pfizer says it will make a decision on splitting the company's innovative and established businesses by the end of the year. It will report Q1 results on May 3. It has agreed to reimburse Allergan $150M for merger-related expenses.
- PFE is up 1% and AGN is down 1% premarket.
Tue, Apr. 5, 1:46 PM
- According to sources, Reuters reports that Pfizer (PFE +3.2%) is leaning toward abandoning the Allergan (AGN -16.4%) deal if the tax benefits are not there.
- Previously: Allergan -19% following Secretary Lew’s remarks on corporate tax inversions (April 5)
Wed, Mar. 30, 1:19 PM
- The U.S. Federal Trade Commission (FTC) has requested additional information (called a second request) from Pfizer (PFE) and Allergan (AGN +0.4%) concerning their pending combination. It is a routine and entirely expected event. The companies will, of course, respond promptly.
- Previously: Pfizer and Allergan agree to merge (Nov. 23, 2015)
Thu, Mar. 10, 2:20 AM
- Teva Pharmaceutical (NYSE:TEVA) is expected to win EU antitrust approval today for its $40.5B bid for Allergan's (NYSE:AGN) generics unit after agreeing to sell off some of its products to appease regulators, Reuters reports.
- How much is being sold? Sources previously told the news agency that global assets worth about $1B would be unloaded to secure the green light.
- The deal, the largest in Israel's corporate history, would see Teva gain bigger economies of scale, a crucial element in the low-margin generic drugs business.
Fri, Feb. 19, 6:20 AM
- According to EU regulators, Teva Pharmaceutical (NYSE:TEVA) has offered concessions to allay antitrust concerns over its $40.5B bid for Allergan's (NYSE:AGN) generics unit.
- "Commitments have been submitted and the new legal deadline is set on 10 March," European Commission spokesman Ricardo Cardoso said in an email.
- Acquiring the Actavis generic business would strengthen Teva's position as the world's largest generics drugmaker.
Mon, Feb. 8, 10:38 AM
- Pfizer (PFE -0.3%) announces the executive team that will lead the organization following the close of the Allergan (AGN -1.2%) transaction. Allergan chief Brent Saunders will President & CEO of the combined firm responsible for commercial operations, manufacturing and strategy.
- Pfizer Group President, Vaccines, Oncology and Consumer (VOC), Albert Bourla, will be lead the Global Innovative Pharma (GIP) business. VOC will be folded into GIP after the Allergan deal is finalized.
- Allergan EVP and President of Branded Pharma, Bill Meury, will lead a new operating segment called Global Specialty and Consumer Brands that will include Pfizer's Consumer Health unit and Allergan's ophthalmology and aesthetics businesses and Botox Therapeutic and Cosmetic.
- The company will continue to manage its commercial operations through two businesses: Innovative Products and Established Products. Its decision to potentially separate the businesses will be made no later than the end of 2018. The Innovative Products business will be comprised of two operating segments: Global Innovation Pharmaceutical and Global Specialty and Consumer Brands. The Established Products business will continue to be led by John Young.
- Additional members of Mr. Saunders' executive team are Tony Maddaluna, EVP and President, Pfizer Global Supply and Laurie Olson, EVP, Strategy, Portfolio and Commercial Operations.
- Pfizer Chairman & CEO Ian Read's team will oversee Finance, R&D, HR, Compliance/Risk, Legal and Corporate Affairs.
- Pfizer Group President, Global Innovative Pharma Business, Geno Germano, will be leaving the company.
Wed, Feb. 3, 4:35 AM
- Pfizer (NYSE:PFE) is insisting that its $160B takeover of Allergan (NYSE:AGN) will not be thwarted by political opposition, amid criticism that the so called tax-inversion would cost the U.S. Treasury billions of dollars in future revenues.
- "Under current law, I do not believe there is any reason why the deal will not close - full stop," Pfizer CEO Ian Read declared.
- He also reiterated a plan to delay until 2018 a decision on whether to break the enlarged Pfizer-Allergan into two or three smaller companies, but said he would be open to offers for its generics business.
Dec. 3, 2015, 11:53 AM
- According to sources close to the matter, Teva Pharmaceutical Industries (TEVA +2.2%) is currently divesting $1B in assets in order to address antitrust concerns related to its intended $40.5B acquisition of Allergan's (AGN -0.2%) generics business, Actavis Generics. The move will help ensure that the deal goes through in Q1 as planned.
- Previously: Teva to buy Allergan Generics for $40.5B (July 27)
Nov. 23, 2015, 7:48 AM
- It's official. Pfizer (NYSE:PFE) and Allergan (NYSE:AGN) agree to merge in a $160B deal, the largest inversion transaction on record. AGN shareholders will receive 11.3 shares of the combined company for each AGN share while PFE shareholders will receive one share of the combined firm for each PFE share. The deal should close in H2 2016. After the merger, the company will do business as "Pfizer plc" and trade under the "PFE" symbol. It will be domiciled in Ireland (pro forma adjusted effective tax rate expected to be 17 - 18%).
- Pfizer shareholders will own ~56% of the combined firm while Allergan shareholders will own ~44%. Pfizer chief Ian Read will be Chairman & CEO while Allergan chief Brent Saunders will be President & COO.
- The merger should be neutral to Pfizer's non-GAAP EPS in 2017, accretive in 2018, more than 10% accretive in 2019 and accretive in the high teens in 2020. Operating cash flow should exceed $25B beginning in 2018.
- The company will make a decision on splitting its innovative and established businesses no later than the end of 2018.
- Separately, Pfizer will execute a $5B share repurchase program in H1 2016. It has ~$5.4B remaining on its previously announced buyback plan.
- Pfizer will host a conference call this morning at 8:30 am ET to discuss the transaction.
- Slide presentation
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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