A few months ago, an innovative partnership between Valeant Pharmaceuticals and billionaire investor William Ackman to purchase Botox maker Allergan Inc looked like a blueprint for success. Now some Valeant shareholders who backed the deal at its start are questioning whether it will become reality.A robust defense from California-based Allergan and Valeant's own weak second quarter financial performance have pressured Valeant stock, which is down 6 percent this year after doubling in 2013. Ackman, whose hedge fund Pershing Square Capital Management owns nearly 10 percent of Allergan, is digging in and told his own investors he is focused on getting a deal done. Valeant also remains committed.Allergan's resistance -- the company has rejected Valeant's overtures and instead been looking for a partner while also trying to cut costs -- is an unexpected twist for Valeant, whose steady stream of drug industry acquisitions under Chief Executive Michael Pearson drew frequent investor praise.Valeant's novel strategy to team up with Ackman and his hedge fund, also was lauded. One of Valeant's top shareholders, ValueAct Capital, called Valeant and Allergan a "perfect match" when the plan was announced in late April.
Allergan, Inc. is a multi-specialty health care Company focused on developing and commercializing pharmaceuticals, biologics, medical devices and over-the-counter products. Shares of AGN traded higher by 3.99% or $6.21/share to $161.82. In the past year, the shares have traded as low as $86.95 and as high as $174.49. On average, 2827540 shares of AGN exchange hands on a given day and today's volume is recorded at 3860138.
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