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Wednesday, October 8, 2014

Actavis deal for Allergan would be huge bet on branded drugs, (NYSE: ACT), (NYSE: AGN), (NYSE: VRX), (TSE: VRX.TO)

If Actavis Plc proceeds with a purchase of Botox maker Allergan Inc for potentially more than $60 billion, it will represent the biggest bet yet by one of the traditional generic drugmakers on the upside of expanding branded medicine holdings. Reuters reported on Tuesday that Actavis plans to approach Allergan about a potential merger, providing an alternative to the hostile pursuit by Valeant Pharmaceuticals International that Allergan had repeatedly rebuffed.Such a transaction would accelerate a trend by the world's biggest generic drugmakers to build up their branded medicine portfolios and make Actavis one of the biggest players in specialty pharmaceuticals. Industry experts say the move would further break down the distinctions between generics, pharmaceuticals and biotechnology players."Biotech is becoming even more complex, while big pharma is now where biotech was 10 years ago in terms of what they're looking for with cancer and orphan drug indications," said Sanford Bernstein analyst Ronny Gal, referring to expensive medications for rare diseases. "And the generics are pushing in to where pharma used to be."As the U.S. generics business becomes saturated, with more than 80 percent of prescriptions already being written for cheap generic drugs, manufacturers have increasingly turned their attention to higher-profit branded medicines.

Shares of ACT traded higher by 1.34% or $3.26/share to $246.65. In the past year, the shares have traded as low as $136.52 and as high as $249.94. On average, 2231170 shares of ACT exchange hands on a given day and today's volume is recorded at 2752741.

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 2.31% or $4.3/share to $190.50. In the past year, the shares have traded as low as $88.34 and as high as $189.41. On average, 2065290 shares of AGN exchange hands on a given day and today's volume is recorded at 3878806.

Valeant Pharmaceuticals International, Inc., formerly Biovail Corporation, is a multinational, specialty pharmaceutical company that develops, manufactures and markets a range of pharmaceutical products. Shares of VRX traded higher by 0.54% or $0.67/share to $125.90. In the past year, the shares have traded as low as $102.60 and as high as $153.10. On average, 2675780 shares of VRX exchange hands on a given day and today's volume is recorded at 2382843.

Valeant Pharmaceuticals International, Inc., formerly Biovail Corporation, is a multinational, specialty pharmaceutical company that develops, manufactures and markets a range of pharmaceutical products. Shares of VRX traded higher by 0.02% or $0.03/share to $139.87. In the past year, the shares have traded as low as $107.30 and as high as $170.45. On average, 450594 shares of VRX.TO exchange hands on a given day and today's volume is recorded at 324538.



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