Biotech Values

[DewDiligence]

WSJ on the VRX/Ackman-AGN story:

http://online.wsj.com/news/articles/SB10001424052702304049904579516020798652940

William Ackman and Valeant Pharmaceuticals International Inc. are teaming up to try to buy wrinkle-treatment Botox maker Allergan Inc, according to people familiar with the matter… Mr. Ackman's Pershing Square Capital Management LP has built a nearly 10% stake in Allergan, according to people familiar with the matter, worth about $4 billion and representing his biggest investment ever, the people said.

…The offer would likely be a combination of cash and stock, the person said, and Pershing Square would maintain a stake in the combined company. The extent of any discussions between Valeant and Allergan, of Irvine, Calif., was unclear. However, one of the people said the tag-team pursuit would be unsolicited.

The strange bedfellows of Valeant and Pershing Square came together after Mr. Ackman in February approached Valeant, a serial acquirer, and suggested he would look to help the Canadian company do a deal, the person said. Allergan as the target was Valeant's idea, the person said. Pershing Square started buying the stock shortly thereafter, the person said.

Nothing in the above changes my view in #msg-100893706.