With Monday's announcement that Allergan would chop jobs and cut research, Valeant says its acquisition target is taking a page from its own playbook. Allergan says it's just doing what it can to create value for shareholders. Call it what you want: According to analysts, the move is a win for Allergan investors--whether a deal gets done or not.
In the wake of AbbVie's $55 billion purchase of Ireland's Shire, which should slash the company's tax rate by more than a third, analysts are abuzz over which foreign company will be next on Big Pharma's buy list. Among the targets: Switzerland-based Actelion.
Allergan's pulled back the veil on the restructuring it's hoping will lure shareholders away from Valeant's $53 billion hostile buyout bid. Among the blueprints: laying off 1,500 employees, or 13% of its global workforce--and leaving room for some potential acquisitions.
Now that AbbVie has hammered out its $55 billion takeover deal for Shire, analysts are looking for the next big biopharma tax inversion deal.
Talk about peer pressure. First, a couple of U.S. drugmakers pull off trans-Atlantic deals that shift their official HQs and lower their tax rates. Next, some bigger names go for the same tax-inversion strategy. Now, investors want to know why every drugmaker isn't jumping in.
Not every drug chief wants to ride the wave of M&A sweeping through pharma. Example: Roche CEO Severin Schwan, who says he'll stay in the shallows.
Chiltern has acquired Ockham, a fellow contract researcher, planning to absorb the company's capabilities and expand its service offerings.
Valeant, which is trying to overcome resistance from the management of Allergan for its $53 billion buyout offer, has filed a new presentation with the SEC in preparation for an investor meeting.
With a bid reaching nearly $55 billion and some goodies for the top execs, AbbVie was finally able to get Ireland-based Shire to surrender its independence, a portfolio of attention deficit hyperactivity disorder and rare disease drugs, and its low Irish tax base.
After months of semi-clandestine courtship, AbbVie and Shire have settled on a price: For $54.7 billion in cash and stock, the U.S. drugmaker will absorb its Irish target, securing a pipeline of promising rare disease treatments and a new address that should slash its tax rate.