Allergan Inc (NYSE:AGN), maker of Botox and other well known products, declared its results on Monday wherein the figures were representative of a massive momentum building up in the segment of sales growth.
In an interview by Jim Cramer on CNBC, Allergan CEO David Pyott claimed that this is by far the best performance of the company over the last 64 years and hopefully will enable shareholders to realize the true potential of the company. On being asked about the hostile takeover bid by Cramer, he replied that the problem that his company had was that Valeant was trying to take over on the basis of existing balance sheet which was not acceptable. Other factors were its unsatisfactory business model as also its latest gimmick of trying to raise Allergan Inc (NYSE:AGN)’s share value to $200 per share.
As the CEO his area of concern was that while Valeant was offering to raise the share value it had not presented any strategy that would lead to this share value. Moreover, Allergan by itself could easily opt for an acquisition and then it would be beyond Valeant’s reach. When Cramer asked him as to why the company was refraining from acquiring another entity, David Pyott replied that Allergan inc (NYSE:AGN) wanted to take over an entity which boasted of an organic growth outlook so that it could add value and quality in real terms to the existing product line-up.
Only one more day is left before the two companies are due to face each other in a Federal Court in California to present their claims against the other. While Allergan sued Valeant and Pershing Square in August, 2014 for violation of security laws the vice versa occurred for spreading false information and reducing the share value. J. Michael Pearson, Valeant CEO, had the following comment to make –
“Allergan would not be trading anywhere near where it is absent our offer, and our offer, even at Valeant’s current stock price, represents a very substantial premium.”
What remains to be seen is whether Allergan Inc (NYSE:AGN) will be successful in retaining its independence in the face of such relentless hostility.
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