Allergan made it official by formally rejecting Valeant's offer to buy it for a package worth $45.7 B. The Allergan board said its decision was unanimous as the bid deeply "undervalued the company" and was fraught with "significant risks and uncertainties" for its shareholders (We're watching your backs! Not ours.) Allergan said it expects its earning to rise 20 to 25 percent in 2015 with double digit revenue growth. Some analysts said that Valeant's chances of making a deal happen now were less than 50%. See Bloomberg.
Shire, itself subject to takeover rumors frequently, made another bold move to acquire Lumena for $260 M in cash plus undisclosed milestones (on the heels of its recent purchase of Fibrogen for $75 M). Lumena's star pipeline project is LUM001 to treat loiver ailments and is in te midst of several phase II studies. Lumena's current CEO says the company plans to fast track this to the FDA for orphan cholestatic liver diseases when studies are completed. Eventually Lumena's R&D eforts on this drug will shift from its current San Diego site to Shire's Lexington, MA facility. See Fierce Biotech.
Posted by Bruce Lehr May 12th 2014.