Allergan (AGN) Targeted By Valeant and Pershing Capital

Shares of Allergan Inc. (AGN) were up +28.33 or +19.95 percent to $170.33 per share in pre-market trading this morning, after news late yesterday of a potential takeover bid from Valeant Pharmaceuticals International Inc. (VRX) and Bill Ackmanâ s Pershing Square Capital Management LP.

Allergan stock closed at $142.00 per share, up +8.08 or +6.03 percent in Mondayâ s regular trading session.
Irvine, California based Allergan Inc. is a diverse health care company specializing in biologics and pharmaceuticals and best known for being the producer of Botox wrinkle treatments. The company was originally founded 60 years ago as an eye care company and has branched out to include medical aesthetics, neurosciences, breast aesthetics, medical dermatology, and urologics. The company employs 11,400 people in 100 countries around the globe. Laval, Quebec based Valeant Pharmaceuticals International Inc. is a large pharmaceutical company, which spans the entire drug discovery pipeline. The companyâ s research includes target identification, treatments through clinical trials and commercialization. Valeant focuses on infectious diseases, neurology and dermatology. The company is best known for producing the antidepressant drug, Wellbutrin XL. New York City based Pershing Square Capital is a $13 billion hedge fund under the control of activist investor William Ackman. The company has acquired almost ten percent of Allergan Inc. investing over $4 billion in the company. According to sources close to the matter, a combination of stock and cash is being worked out by both Valeant and Pershing, which would price the deal at the $165-$170 level, including $15 billion in cash. Nevertheless, an exact figure has yet to be determined. Allergan did release a statement noting the public filings of Valeant and Pershing. The statement said, â

Published on Apr 22, 2014
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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