CNBC, on Monday, 12th January, 2015, had in its studio none other than Brent Saunders, CEO of Actavis Plc (NYSE:ACT) and to his credit, he was forthcoming on a number of issues. Owing to having successfully sealed deals worth at least a $100 million over 2014, the CEO deservedly earned for himself the title of ‘Chuck Norris of Pharma M&A’ and seemed comfortable with it.
One of the most interesting acquisitions that he has been credited with entailed taking over Allergan Inc for $66 billion and with this the complex saga of hostilities surrounding the Botox manufacturer eventually came to a favorable conclusion. Under the banner of Actavic Plc (NYSE:ACT), Mr. Saunders offered a deal to Allergan which was far more advantageous as compared what had been offered by the Valeant-Ackman combination.
When questioned on what facilitated deal making, Actavis Plc (NYSE:ACT)’s CEO attributed it to an interesting environment characterized by low cost of capital and plenty of money being around, both of which, according to him have been playing the role of catalysts. That said, he also added a word of caution, saying that while it paid to be inquisitive, decisions needed to be backed by strategic and financial viability.
Brent Saunders was also vocal in his support for activist investors and mentioned that his experience with Carl Icahn had been particularly positive. According to him, such individuals often called for a movement that ultimately benefited the investor community in its entirety. The discussion came to an end with the CEO warning against sacrificing long-term gains for short-term goals as he considered this to be a strategy that caused more harm than good in the long run.
As of 12th January, 2015, Actavis Plc (NYSE:ACT) was poised at $272.28 per share at the end of trading session.
This article has been written by Vinita Basu.