Wednesday, it looked like Christmas had come early for Actavis, with the FDA approving its new drug to treat dementia in Alzheimer's patients. But the Dublin drugmaker couldn't go two-for-two on the day, with the agency later striking down its high blood pressure cocktail.
Just one month after announcing a $66 billion pact to buy Allergan, Actavis is eyeing Spain's Almirall as a way to boost its European growth, according to Bloomberg.
Last week, a New York judge called a halt on Actavis' plan to pull Namenda off the market, throwing off its strategy for switching patients to a newer extended-release version.
Combining Actavis and Allergan will be no easy task, but the companies think their new leadership team can get the job done. Tuesday, they announced a supporting cast for CEO Brent Saunders, who will play the lead role in his biggest challenge yet.
A federal judge in New York has decided Actavis CEO Brent Saunders' plan to move patients to a new version of its Alzheimer's treatment Namenda IR by stopping production on the older, patent-threatened version is not so clever. The court will order the drugmaker to keep making it for now.
With a months-long hostile pursuit from Valeant and failed talks to buy North Carolina's Salix, Allergan had already been on an M&A roller coaster this year before finally agreeing to sell itself to Actavis last month. And options traders, for one, are afraid the ride's not over yet.
California's Allergan desperately wanted to avoid a hostile takeover by Valeant, fearful it would ravage its R&D operations in favor of its marketing oriented approach to the business. So it turned to Actavis as a white knight. But Actavis is also known to cut jobs with impunity to make deals pay and Allergan need look only a few miles down the road for proof of that as Actavis prepares to lay off 200 at it operations in Corona, CA.
Actavis has a lot to do as it works to bring new acquisition Allergan into the fold. And finding ways to grow the California company's products in China is high on the list.
With the excitement over Actavis' white-knight swoop-in for Allergan out of the way, it's time to take a closer look at the transaction--and how it compares with Valeant's proposed Allergan tie-up.
With Actavis and Allergan's deal agreement, the Botox maker is getting what it's wanted for months--a way to thwart hostile bidder Valeant. And Actavis? It's getting a glimpse of a future that holds $23 billion in annual revenue, and that would officially punch its ticket into Big Pharma.