Biotech Values

[DewDiligence]

Allergan makes competing $3.2 bln bid for Inamed

[This is a puzzling move by AGN; many of Inamed’s business lines—including breast implants and the LapBand device for obesity—would seem to be a poor fit for AGN’s focus on ophthalmology and dermatology. Moreover, Inamed’s dermal fillers are second-rate products compared to MRX’s Restylane. Finally, the botulinum toxin that Inamed has licensed from a European company is considered clearly inferior to Botox.

The only rationale for this offer that makes sense to me is quashing the Botox competition before it gets off the ground.]

http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh51631_2005-11-15_08-43-38_wen...

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Tue Nov 15, 2005 03:43 AM ET

NEW YORK, Nov 15 (Reuters) - Specialty pharmaceutical company Allergan Inc. ( AGN ) has made a $3.2 billion bid for Inamed Corp. ( IMDC ) in an attempt to break up Medicis Pharmaceutical Co.'s ( MRX ) proposed takeover of Inamed.

Allergan said on Tuesday it offered $84 a share in cash and stock for each Inamed share, a premium of nearly 13 percent based on the shares' value at the end of trading on Monday of $74.44. The company said its offer represents a 16 percent premium to Medicis's bid.

Inamed makes breast implants and other cosmetic products,
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