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.
A months-long pursuit of Allergan may be about to come to a close for Valeant and activist investor Bill Ackman--but not with the results they were hoping for.
While the industry is fixated on whether Actavis will save Allergan from a hostile takeover by Valeant or whether Pfizer might be sizing up a run at Actavis, there was a development Thursday that holds huge upside potential for Actavis. That was the FDA's decision to reclassify Mallinckrodt's Concerta generic as not making the grade in equivalence.
With Pfizer's eligibility to bid again for AstraZeneca nearing, the drug giant seems unlikely to make another run at its one-time target, industry-watchers say. But that doesn't mean it isn't prepping a run at someone else.
Heads up, Valeant. Actavis is reportedly in talks to snatch up Allergan--and word is it could happen quickly.
Now that Allergan has two interested buyers on its trail between Valeant and Actavis, leading shareholder and Valeant partner Bill Ackman has an idea: Run an auction.
Actavis has been inking deals with Forest Laboratories and Warner Chilcott to get its hands on the companies' suite of branded products. Now, the company is celebrating the fruits of its labor with promising Q3 numbers and a slew of new deals on the horizon.
Valeant and partner Bill Ackman have dodged a serious roadblock in their quest to acquire Allergan. A 9.7% roadblock, if you will.