Press leaks from those ubiquitous "unnamed sources" indicate that Allergan is ready to announce budget cuts at its next earnings release, along with chops to the most "unpromising" portions of the R&D program, and also a plan whereby Senior management compensation will be more tightly tied to hitting some of those financial goals it laid out in response to Valeant unwanted takeover bid. Hmmm! One might ask oneself, why isn't this the norm for Allergan (or anyone else)? Why does it take a takeover threat -- especially one from such a ruthless cutter of R&D -- to spur management to do things it probably should do anyway?
No doubt these changes might well be positive ones for Allergan;s operation and for its shareholders. No doubt, these changes still would be much less severe than what Valeant might impose if it gains control. But why so late in the game? Somebody has to be asking that question right? See Fierce Biotech and Bloomberg.
Posted by Bruce Lehr July 9, 2014