Allergan has seen profits soar, has reiterated no to Valeant's 53 billion takeover offer and will cut 13% of the workforce.
Allergan, the pharmaceutical company that makes Botox, reported better-than-expected profits in the second quarter and reiterated its no to a $53 billion cash and stock takeover offer from Valeant Pharmaceuticals International. The company also said it will cut 1,500 jobs, 13% of the total, generating $475 million in pre-tax savings in 2015.
To reduce staff, Allergan will incur one-time charges of $375 million to $425 million related to severance payments and other restructuring costs. In the three months, the company reported profits of $417.2 million, with revenue up 15.9% to $1.827 billion.
Second quarter earnings of $1.37 per share are higher than $359.9 million, $1.17 per share, for the same period last year. Excluding exceptional items, earnings were $1.51 per share. Analysts were expecting profits of $1.44 per share on $1.77 billion in business.
Before the publication of the accounts, the American media had announced that the Capital Research and Management mutual fund, one of Allergan's main shareholders, sold almost all of its stake, equal to 6.3%, leaving the Botox manufacturer without the backing of a large and longtime investor just as the group attempts to forestall a hostile bid from Valeant.
The latter does not intend to give up and is also ready to take legal steps: Valeant has contacted the Canadian and American regulatory authorities for alleged false information provided by Allergan. According to Valeant, Allergan falsely declared to the Securities and Exchange Commission, the American Consob: he would have quoted and described as stagnating or declining the sales of the Bausch & Lomb optical division, bought last year by Valeant for 8.57 billion dollars in cash from private equity Warburg Pincus.
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