Case_6_Valeant-Draft II - Cherie R Gunn 485 Management...

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Cherie R. Gunn 485 Management Case #6 Valeant / Biovail Merger The Valeant Company was always trying to improve its performance in their sector. Through 2008, they unsuccessfully tried to merge with other companies to achieve competitive dominance. The merger between Biovail and Valeant has several positives, which include increased market share and a lower cost of new product development. Since Biovail is a drug developing company and Valeant is a drug manufacturer, this is the classic definition of a company using horizontal integration to merge. The merger allowed two companies trying to gain competitive advantage in the neurological field. This summary will show how successful or unsuccessful this reverse merger really was, regarding the merger’s cash, planning, and management strengths. Mid-2010 was the best possible time for Valeant to pursue the merger because of the tax ramifications. In mid-2010, Valeant shares increased 40 percent, but Valeant needed a tax break. The best way to
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  • Spring '16
  • SARAMORRIS
  • Management, Corporation, merger, Biovail Merger

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