Valeant continues pursuit of Allergan, ponders company break-up
- During a recent communication with shareholders, Valeant’s CEO, Michael Pearson, has publicly pondered the possibility of breaking up its company into smaller business units.
- Valeant’s latest acquisition quest is $47 billion Allergan buyout, which has been rejected by Allergan.
- If Valeant acquires Allergan it would augment its strong ophthalmology portfolio.
For the past six years, Valeant has been in non-stop acquisition mode, spending $19 billion to acquire 35 companies. Its bid to buy Allergan for $47 million has been rebuffed, but Valeant may still prevail.
Acquisition of Allergan would not only add to Valeant’s robust ophthalmology portfolio, but would also bring Botox into its portfolio and make the company very large. Valeant’s rapid growth has raised some concerns about its operating model. CEO Michael Pearson has advanced the idea of breaking the company into smaller business units. Reactions have been mixed. Regardless, Pearson is still pursuing his ultimate goal of making Valeant one of the top five pharmaceutical companies, based on size, by 2016.