Allergan rejects Valeant, provides five-year guidance

Allergan Inc. (NYSE:AGN) said its board unanimously rejected an unsolicited offer to be acquired by Valeant Pharmaceuticals International Inc. (TSX:VRX; NYSE:VRX) in a cash and stock deal that values Allergan at about $47 billion based on 307.6 million shares outstanding as of Feb. 20. Allergan said the proposal "substantially undervalues" the company. Valeant said it is "disappointed" that Allergan rejected the offer without engaging in any "substantive discussions with Valeant or Allergan's largest stockholder, [hedge fund] Pershing Square." Valeant said it remains committed to pursuing the deal (see BioCentury Extra, April 22).

Allergan also said it expects double-digit annual revenue growth and 20% compounded annual EPS growth over the next five years. In February, the company reported $6.3 billion in 2013 revenues and net diluted EPS of $4.77. ...