Biotech Values

[DewDiligence]

AGN-KYTH deal amended to be all-cash at $75/sh:

http://www.wsj.com/articles/allergan-changes-its-2-1-billion-deal-for-kythera-to-all-cash-1438778826

Allergan PLC amended the terms of its pending $2.1 billion deal for double-chin treatment maker Kythera Biopharmaceuticals Inc. by agreeing to pay for it all in cash and dropping the stock component.

In a news release Wednesday, the companies expect the all-cash transaction at $75 a share can be completed more quickly than the original deal announced in June, which was comprised of 80% cash and 20% stock.

At the time, Allergan Chief Executive Brent Saunders said the maker of wrinkle-treatment Botox had opted against an all-cash deal to save “fire power for future deals” this year.

Since then, Allergan has agreed to sell its generics unit to Teva Pharmaceutical Industries Ltd. in a cash-and-stock deal valued at $40.5 billion, of which $33.75 billion is expected to be in cash.

In other words, thanks to the TEVA deal, AGN no longer needs to conserve cash for future dealmaking.