Biotech Values

[DewDiligence]

VRX/AGN—Do you think Ackman sailed too close to the insider trading wind, given his knowledge of Valeant's intentions? Probably not in my view, but it's a close one.

Ackman apparently threaded his way through some tight legal loopholes, incurring substantial legal expenses. For this reason, I don’t think the VRX/Pershing offer for AGN is likely to be the new template for hostile takeovers, as some writers in the business press have proclaimed.

p.s. I’ll be very surprised if AGN accepts terms anywhere near the ones offered ($48.30 in cash + 0.83 shares of VRX). I’ve been following AGN for 16 years and have made good money from the stock; I don’t currently own it myself, but I manage an account with a large holding.