BY EMILY LUNDBERG

Irvine – Allergan, Inc., an Irvine-based multi-specialty healthcare company focused on discovering, developing and commercializing innovative pharmaceuticals, biologics and medical devices, announced that it has recently rejected an offer to merge with Valeant Pharmaceuticals International, Inc.

In an unsolicited proposal sent on April 22, Valeant offered to pay $48.30 in cash and .83 shares for each Allergan share. In the proposal information listed on their website, Valeant CEO, Michael Pearson, claimed that a merger between the two companies presents “an undeniable opportunity to create extraordinary value for both Allergan and Valeant shareholders by establishing an unrivaled platform with leading positions in ophthalmology, dermatology, aesthetics, dental and the emerging markets.”

Allergan’s rejection of the proposal obviously shows that they don’t agree with Pearson’s opinion. In fact, in his rejection letter to Pearson, Allergan CEO, David E. I. Pyott, stated that the proposal “substantially undervalues Allergan” and posed a serious risk because of a “large stock component, which we believe is a risk for Allergan stockholders due to the uncertainty surrounding Valeant’s long-term growth prospects and business model.”

Another reason why the merger offer was rejected by Allergan is that “given the strength in its business, Allergan plans to increase earnings per share by 20-25%” over the next couple of years.” Indeed the company has seen a net sales increase every business quarter since 2009. It is Allergan’s belief that accepting the offer may have affected their likelihood of reaching that potential.

Currently Allergan is Irvine’s seventh largest employer, with its 28-acre headquarters hosting nearly 2,000 employees. The company also employs an additional 9,000+ employees in over 100 countries across the world.