Botox-maker Allergan snapped up for $66billion by U.S. pharmaceutical giant ending six-month bidding war
- Allergan fended off advances from hedge fund billionaire William Ackman and Canadian drug maker Valeant Pharmaceuticals
- It feared that neither would pump money into research and development
- Actavis, which is headquartered in Dublin, Ireland and New Jersey, said Monday that it will spend $219 in cash and stock for each share of Allergan
Botox manufacturer Allergan has agreed to be bought by pharmaceutical giant Actavis for $66 billion following a six-month bidding war.
The Los Angeles-based company fended off advances from hedge fund billionaire William Ackman and Canadian drug maker Valeant Pharmaceuticals in fear that neither would pump money into research and development.
Allergan, founded in 1948 with an anti-allergy nose drop, acquired the rights to distribute botulinum toxin in 1989 and the wrinkle-freezing drug was approved for cosmetic use in 2002.
Top-seller: Botox manufacturer Allergan has agreed to be bought by pharmaceutical giant Actavis for $66billion following a six-month long bidding war
In 2013 sales were shy of $2 billion, up 12per cent from 2012, which meant Botox represented more than a third of Allergan's total sales.
Actavis, which is headquartered in Dublin, Ireland and New Jersey, said Monday that it will spend $219 in cash and stock for each share of Allergan.
Its current CEO Brent Saunders will lead the combined company.
Commenting on Monday's deal, David E. I. Pyott, chairman and CEO of Allergan, said in a release: 'Today's transaction provides Allergan stockholders with substantial and immediate value, as well as the opportunity to participate in the significant upside potential of the combined company.
'We are combining with a partner that is ideally suited to realize the full potential inherent in our franchise.
'Together with we are poised to extend the growth story as part of a larger organization with a broad and balanced portfolio, a meaningful commitment to research and development, a strong pipeline and an unwavering focus on exceeding the expectations of patients and the medical specialists who treat them.'
On news of the transaction, Actavis shares rose 3.5 percent to $252.22 on the New York Stock Exchange.
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