Valeant, as promised, upped its bid for Allergan by adding $10 in cash per share to total $58.30 plus 0.83 shares of its stock for each Allergan share. The total deal is now worth $166.16 per share plus up to $25 per share in CVRs if Allergan's lead compound, DARPin, reaches its full sales potential --- roughly $20 B over 10 years. That boosts the offer by 21% for the cash portion and the overall offer by about 5% (exclusive of the CVRs).
Valeant also offered concessions to hold $400 M in reserve to make sure DARPin meets its development and commercialization timeline. Plus Valeant pledged to meet with Allergan's board in person to explain its business model and [hopefully] correct Allergan's "misunderstanding of our business model and its performance."
Sounds Pfizer-like relative to its pledges to the UK goverment surrounding its business intentions and particularly its stance on R&D in the UK. Like Pfizer, the bid may just not be enough to entice Allergan shareholders, 60% of whom are said to be holding out for $181-$200 per share. The deal is sweeter this time, but is it sweet enough to entice? See Fierce Biotech and Bloomberg.
Posted by Bruce Lehr May 28th 2014.