Aesthetics Giant, Valeant, Makes Hostile Bid for Allergan
On April 22nd the aesthetic market started buzzing about BIG news. One week ago, Valeant declared their intentions to acquire the industry giant, Allergan. This news stirred up a lot of emotion, especially because experts say that the “acquisition” is much more of a hostile take over than a merger.
Valeant Pharmaceuticals has teamed up with investor activist, Bill Ackman to make a $47 billion offer to buy Allergan, using a combination of cash and stocks. Since Allergan is a publicly traded company, Valeant is legally able to acquire the company and its partners without compliance. Swallowing Allergan is expected to boost Valeant’s stock price to $13.50 or even $14 a share by 2016, which is 10 times the price that Valeant is currently trading at.
The US born aesthetic empire, Allergan, has one of the biggest claims to fame, the world renowned injectable BOTOX. Botox has revolutionized the anti-aging industry, and has become a household name for wrinkle reduction. In the medical cosmetic industry alone, Allergan’s product line includes Natrelle breast implants, BOTOX, Juvederm, Latisse, Prevage and Vivite Anti Aging skin care treatments.
The Canadian conglomerate, Valeant, has been going through major operational and restructuring since the 90s, focusing their business model on acquisitions. Since 2010, Valeant has aggressively expanded their empire through acquisitions in the hopes of becoming the leader in Ophthalmology, Dermatology and Aesthetics. Companies including the skin-care corporation Medicis Pharmaceutical, Solta Medical and PreCision Dermatology to name a few, have already merged with Valeant. With the merger of these companies, Valeant has acquired a large number of aesthetic brand products that have been making a big splash in the non-surgical cosmetic industry, such as, the neuromodulator Dysport, as well as the dermal fillers Restylane, Sculptra Aesthetics, Perlane, in addition to the hyaluronidase injectable Vitrase, not to forget the energy-based devices like Thermage, VASER, Fraxel, Liposonix, Clear + Brilliant, Isolaz, and CLARO.
In an article written by The Aesthetic Guide, Ryan Weldon, the Executive Vice President and company Chairman said, “Our goal is to provide a comprehensive set of tools that allows the physicians to meet the needs of any aesthetic patient that comes in their office… Some companies will say that they only focus on a specific area, like devices, Valeant views anything that brings value to the physician as something it would like to offer…”
Allergan, on the other hand, is not very enthusiastic about the possible acquisition. Last year Allergan reported revenue of $6.3 billion and BOTOX sales reported at $980 million in revenue in first half of 2013 alone. The lack of enthusiasm for Allergan is also due to their ideology that R&D can be acquired cheaply and most employees are expendable. However, with the current state of Valeant being $17 billion in debt, a J.P. Morgan analyst believes that Allergan can still be saved with a white knight and make a game-changing deal on their own.
Hello, My name is Sonia and I am a blogger that loves to write about sports, health, DIY projects, hair and makeup, jewelry and home remedies from India! I also write for a medical and cosmetic practice in Columbus, where I get most of my health knowledge from some of the greatest, well rounded surgeons. I am a fun-loving, vegetarian that will try anything once. I like to play golf/tennis, dance, meet new people and listen to upbeat music.