Valiant.docx - Valeantu2019s Battle for Allergan Submitted...

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Valeant’s Battle for Allergan Submitted by: Ashish Swarup – EPGP-11-018 Abishake Malhotra – EPGP-11-005 Sudhir Lonkar – EPGP-11-118 Sagar Salunke – EPGP-11-100 Shantanu Kaamnapure – EPGP-11-107 Aayush –EPGP-11-002 1. Why does Valeant wish to acquire or merge with Allergan? Is it possible for Valeant to create value by acquiring/merging with Allergan? Answer: Valeant is a company which uses the inorganic model of growth. Valeant’s CEO Michael Pearson has been a seasoned consultant at Mckinsey and is known as a serial
acquirer. In the first six years of his tenure as CEO, he acquired more than 100 companies and bagged licensing deals. He sought companies which displayed significant synergies and tried to capture them. Allergan has a rich culture of research and development and follows the organic model of
growth. Its R&D engine has generated numerous innovative products including the invention of Botox as a cure for wrinkles. It has grown from a small eye- care company to a major pharmaceutical and medical device company. By acquiring Allergan, Valeant will have an R&D engine of its own.
Pearson was known for cutting costs and introducing extreme capital discipline in businesses and believed that by cutting unnecessary costs in Allergan, he can increase the value for its shareholders. He also wanted to acquire the specialty pharmaceuticals segment which consisted of
products which were high-cost, high- complexity and high- touch which were not in the product mix of Valeant Valeant is a company which uses the inorganic model of growth. Valeant’s CEO Michael Pearson has been a seasoned consultant at Mckinsey and is known as a serial
acquirer. In the first six years of his tenure as CEO, he acquired more than 100 companies and bagged licensing deals. He sought companies which displayed significant synergies and tried to capture them. Allergan has a rich culture of research and development and follows the organic model of
growth. Its R&D engine has generated numerous innovative products including the invention of Botox as a cure for wrinkles. It has grown from a small eye- care company to a major pharmaceutical and medical device company. By acquiring Allergan, Valeant will have an R&D engine of its own.
Pearson was known for cutting costs and introducing extreme capital discipline in businesses and believed that by cutting unnecessary costs in Allergan, he can increase the value for its shareholders. He also wanted to acquire the specialty pharmaceuticals segment which consisted of
products which were high-cost, high- complexity and high- touch which were not in the product mix of Valeant Valeant is a company which uses the inorganic model of growth. Valeant’s CEO Michael Pearson has been a seasoned consultant at Mckinsey and is known as a serial
acquirer. In the first six years of his tenure as CEO, he acquired more than 100 companies and bagged licensing deals. He sought companies which displayed significant synergies and tried to capture them.

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