The news today is that Actavis has acquired Forest Labs for $25 B. The combned company will have sales of nearly $15 B and both specialty pharma products and generic drugs. The acquisition of Forest will also bring a larger R&D component to the combined company -- assuming no further changes are made on that front going forward. Forest recently cut R&D's budget by $500 M, including many layoffs. See Fierce Biotech.
The Forest acquisition represents another example where a Carl Icahn owned pharma investment has paid off through a sale. In addition to owership in Forest, Icahn has previously owned stakes in ImClone Systems that sold to Eli Lilly for $6.3 B in 2008, and in Genzyme Corp that sold for $19.4 B to Sanofi in 2011. Icahn has also had holdings with Amylin Pharmaceuticals that sold to BMS for $5.1 B in 2012, and has been an investor with Biogen Idec whose price has tripled in the past year. See Bloomberg.
Posted by Bruce Lehr Feb 18th 2014.