Valeant Pharmaceuticals (NYSE:VRX, TSE:VRX) today upped the cash portion of its unsolicited acquisition bid for Allergan (NYSE:AGN) to $49.44 billion, increasing the offer by $10 per share and adding a contingent value right related to Allergan’s Darpin eye drug that would be worth another $25 per share.
Based on yesterday’s closing price for AGN stock, the new offer is worth about $166.16 per share, up from roughly $152.89; both offers include 0.83 Valeant shares for each share of Allergan. Valeant said it is willing to commit to spending $400 million on Darpin and to retaining all Allergan employees involved in developing the drug.
"Our increased offer provides additional immediate value to the Allergan shareholders – we note that the cash portion of our revised offer alone represents approximately 50% of Allergan’s unaffected share price – and provides Allergan shareholders with significant substantial additional value if Darpin achieves Allergan’s expectations," Valeant chairman & CEO J. Michael Pearson said in prepared remarks.
In a separate release, Valeant said it’s divesting its filler and toxin assets to Nestlé SA for $1.4 billion, apparently seeking to soothe any anti-trust concerns prompted by its unwanted wooing of Allergan.
Valeant’s move to sweeten its Allergan offer comes a day after Allergan issued a presentation questioning Valeant’s organic growth, the performance of its acquisition of Bausch & Lomb and Medicis, its ability to provide scale and the stability of its leadership team, among other issues. Today Allergan said its board will "carefully review and consider the revised proposal and pursue the course of action that the board believes is in the best interests of the company and all of its stockholders."