Allergan Files Investor Presentation Claiming Valeant’s Business Model is 'Unsustainable'

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IRVINE, Calif.— Allergan, Inc. (NYSE: AGN) has filed an investor presentation with the Securities and Exchange Commission that raises further concerns about what it characterizes as “potential business risks and issues” related to a proposed purchase by Valeant Pharmaceuticals International (NYSE/TSX: VRX).

In the presentation, which follows an earlier presentation issued by Allergan on May 27, 2014, Allergan asserts that its franchises “would be significantly at risk under Valeant’s ownership.” Allergan also presses Valeant for greater transparency in financial disclosures, as well as additional disclosures including a full list and respective performance of Valeant’s top 15 products, organic growth by segment and organic growth metrics for Bausch & Lomb. In addition, Allergan claims that Bausch & Lomb, which Valeant acquired in August 2013, appears to be losing market share in pharmaceuticals, lenses and intraocular lens, although Valeant claims that the business is growing at a double-digit rate.

Valeant had not responded to the presentation as of press time.

On June 23, Allergan’s board unanimously rejected an unsolicited takeover bid from Valeant.