Allergan making moves to be leaner
- Valeant and Bill Ackman’s hedge fund, Pershing Square, are still in hot pursuit of a takeover-merger with Allergan.
- As part of its effort to convince shareholders that it’s beter off as a standalone company, Allergan is putting in place management incentives tied to performance.
- Cost-cutting measures and more details will be announced at month’s end.
By the end of July, Allergan will announce a series of cost-cutting measures, along with other tactics, such as buying back shares and even possibly taking on an acquisition as a way to add growth to product lines. CEO David Pyott’s contention is that Allergan needs to be as strong as possible in order to fend off a Valeant takeover. The last offer was $72 in cash and 0.83 Valeant shares in exchange for one share of Allergan. The answer from Allergan continues to be a firm “no.”