Valeants Battle for Allergan - Group 10.pptx -...

This preview shows page 1 - 5 out of 9 pages.

Valeant’s Battle for Allergan Name Roll Number Aishwarya Chandramouli EPGP 12 A 004 Praveen Nelge EPGP 12 A 077 Santosh Kumar Singh EPGP 12 A 096 Sartaj Quaraishi EPGP 12 A 100 Unmesh Anil Mether EPGP 12 A 0119 Mainan Ray EPGP 12 A 056 Group 10, Section A
Background A n organization driven on innovation always believed in organic growth & had the culture of Research & development led development Highly customer centric with successful line of products & one of the most popular invention was Botox for wrinkle treatment Started from Eye care company & diversified to pharmaceutical and then to medical Equipment's Allergan A n Organization with inorganic growth & known for growth thru acquisitions having similar synergies Highly stakeholders focused Line of products included wrinkle treatment and contact lens solution Low investment in R&D Valeant Background
Why does Valeant wish to acquire or merge with Allergan? Is it possible for Valeant to create value by acquiring/merging with Allergan? Valeant always looked for the organizations which reflected high on Synergies & are successful in their areas of competence Allergan had their own R&D labs which invented multiple successful products in the market having multinational pharmaceutical presence, amongst which the most successful was BOTOX to cure wrinkles Valeant was missing the premium range, high cost & high complexity product line which had appealing impacts on the consumers By acquiring or merging with Allergan – Valeant would have got the control over R & D labs which would have increased the value of their stakeholders in the marketplace Valeant was running their business operations in the eye care solutions (contact Lens) with ReNu where in Allergan was into wrinkle treatment (Botox), Eye Drops (Restasis & Lumigan) The merger of both would have created a meaningful value as the synergies between the two could have filled the gaps in products and consumer segments thus enhancing the Top and Bottom line both With merger, Valeant would have been in full control over Allergan’s R & D labs and reduced the cost synergies on R & D from 17% to <5% Valeant’s Wish Value Creation
Is Valeant offering a premium to Allergan’s shareholders for the change of control?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture