Replies to post #183901 on Biotech Values

[DewDiligence]

AGN, ACT close to consummating friendly merger, according to WSJ:

http://online.wsj.com/articles/allergan-actavis-near-deal-1416162347

Actavis PLC and Allergan Inc. are nearing a friendly deal that could swipe the Botox maker from hostile suitor Valeant Pharmaceuticals International Inc., according to people familiar with the matter.

The boards of the two companies are expected to meet to review a cash-and-stock deal, the people said. An agreement could be announced as early as Monday…

…An agreement could thwart Allergan’s months of efforts to fend off Valeant and activist investor William Ackman, who teamed in a takeover effort.

Clearly, the word, thwart is not what was intended in this context!

[DewDiligence]

VRX purportedly calling a moratorium on roll-up business model due to debt load:

http://ca.reuters.com/article/businessNews/idCAKBN0JN0DG20141209

Valeant has more than $16.3 billion of debt as of September 30 and is rated Ba3 by Moody's, the third level of junk status. Improving its credit rating will help it pay for acquisitions down the road, the sources said.

Why is VRX’s mountain of debt suddenly a problem when it was no big deal during the hostile attempt to acquire AGN?