Allergan Assails Valeant

May 27 2014 | 12:36pm ET

In its battle to avoid being swallowed by rival Valeant Pharmaceuticals International, Allergan Inc. isn’t afraid to fight dirty.

The Botox-maker again blasted Valeant’s business model and alleges that its $46 billion hostile offer—backed by hedge fund Pershing Square Capital Management—is exaggerating the potential savings that could be achieved by a merger.

In a regulatory filing, Allergan said that fewer savings from research and development and tax structure were available. It also reiterated its fear that Valeant lacks transparency and that its acquisition model masks low sales growth and the market-share erosion suffered by the companies it buys.

“Valeant’s limited experience with large, global-scale products represents a material execution risk attempting to grow Allergan’s categories and launching significant new large products through existing channels,” Allergan said.

Allergan’s claims were backed by forensic accounting firms Alvarez & Marshal and FTI Consulting.

Earlier this month, Allergan rejected Valeant’s offer, saying it substantially undervalues the company.


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