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Allergan to cut 1,500 employees in restructuring

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Botox maker Allergan will cut about 13 percent of its workforce as part of a push to become more efficient while it fights a hostile takeover bid from Valeant Pharmaceuticals.

The Irvine, California, company said Monday it plans to trim about 1,500 employees and around 250 vacant positions as it restructures to focus on its “highest value opportunities.”

Allergan said its restructuring will yield annual pretax savings of about $475 million in 2015. It announced the cuts the same day it said second-quarter results trumped analyst expectations, as earnings grew 16 percent to $417.2 million.

“Today’s results demonstrate that we’re clearly on the right path,” Chairman and CEO David Pyott told analysts during a conference call. “The actions announced today will only accelerate our trajectory.”

Allergan Inc. has rejected several takeover attempts from Valeant Pharmaceuticals International Inc. and activist investor Bill Ackman’s Pershing Square Capital Management. The latest amounts to about $53 billion in cash and stock.

Valeant has promised cost-cutting and savings of its own if the two companies combine. Ackman, whose company owns a 9.7 percent stake in Allergan, told CNBC that shareholders had been asking for Allergan cost-cutting for some time. He said the reductions that the company announced Monday amounted to “cutting out fat you should have cut out a long time ago.”

“Allergan can only achieve so much as a stand-alone company,” he said.

Ackman has lined up nominees for Allergan’s board, and Pershing Square wants to hold a special meeting where Allergan shareholders can have a say in the buyout bid and on the company’s direction.

Allergan, which also makes the dry-eye treatment Restasis, has adopted a “poison pill” measure to block a takeover. Pyott said Monday that Valeant’s offer was “so far away from the intrinsic value of this company” that there was no reason for the drugmakers to have substantive talks.

Allergan and Valeant have feuded publicly over the possible takeover since April. In the latest twist, Valeant said Monday it has complained to both the Securities and Exchange Commission and authorities in the Canadian province of Quebec, where it is based, that Allergan has been making false statements about its business even though Valeant has publicly corrected it.

Valeant said the latest example of these statements involves the performance of contact lens maker Bausch + Lomb, which Valeant acquired last year.

“We can no longer tolerate unjustified attacks on Valeant’s business and strongly believe we are obligated to take action to protect Valeant shareholders from Allergan’s apparent attempts to mislead investors and manipulate the market for Valeant stock,” Valeant Chairman and CEO J. Michael Pearson said in a statement from the company.

An Allergan spokesman responded by email that the company stood by its comments.

“We call on Valeant to report complete and transparent details on its business on an ongoing basis,” the spokesman said. “At the end of the day, investors will make their own decisions.”

The drugmaker also said on Monday that it raised its forecast for adjusted 2014 earnings to between $5.74 and $5.80 per share from a range of $5.64 to $5.73 that it predicted in May. It expects Botox to deliver net sales ranging from $2.2 billion to $2.28 billion.

Botox is known best for its ability to smooth frown lines on aging foreheads, but it also is approved to treat neck spasms, eye muscle disorders, migraines and other conditions.

Shares of Allergan climbed 2.3 percent, or $3.90, to $171.30 Monday afternoon, while U.S.-traded shares of Valeant also were up 3 percent, or $3.69, to $125.66.

Allergan to cut 1,500 employees in restructuring

KDWN

Botox maker Allergan will cut about 13 percent of its workforce as part of a push to become more efficient while it fights a hostile takeover bid from Valeant Pharmaceuticals.

The Irvine, California, company said Monday it plans to trim about 1,500 employees and around 250 vacant positions as it restructures to focus on its “highest value opportunities.”

Allergan said its restructuring will yield annual pretax savings of about $475 million in 2015. It announced the cuts the same day it said second-quarter results trumped analyst expectations, as earnings grew 16 percent to $417.2 million.

“Today’s results demonstrate that we’re clearly on the right path,” Chairman and CEO David Pyott told analysts during a conference call. “The actions announced today will only accelerate our trajectory.”

Allergan Inc. has rejected several takeover attempts from Valeant Pharmaceuticals International Inc. and activist investor Bill Ackman’s Pershing Square Capital Management. The latest amounts to about $53 billion in cash and stock.

Valeant has promised cost-cutting and savings of its own if the two companies combine. Ackman, whose company owns a 9.7 percent stake in Allergan, told CNBC that shareholders had been asking for Allergan cost-cutting for some time. He said the reductions that the company announced Monday amounted to “cutting out fat you should have cut out a long time ago.”

“Allergan can only achieve so much as a stand-alone company,” he said.

Ackman has lined up nominees for Allergan’s board, and Pershing Square wants to hold a special meeting where Allergan shareholders can have a say in the buyout bid and on the company’s direction.

Allergan, which also makes the dry-eye treatment Restasis, has adopted a “poison pill” measure to block a takeover. Pyott said Monday that Valeant’s offer was “so far away from the intrinsic value of this company” that there was no reason for the drugmakers to have substantive talks.

Allergan and Valeant have feuded publicly over the possible takeover since April. In the latest twist, Valeant said Monday it has complained to both the Securities and Exchange Commission and authorities in the Canadian province of Quebec, where it is based, that Allergan has been making false statements about its business even though Valeant has publicly corrected it.

Valeant said the latest example of these statements involves the performance of contact lens maker Bausch + Lomb, which Valeant acquired last year.

“We can no longer tolerate unjustified attacks on Valeant’s business and strongly believe we are obligated to take action to protect Valeant shareholders from Allergan’s apparent attempts to mislead investors and manipulate the market for Valeant stock,” Valeant Chairman and CEO J. Michael Pearson said in a statement from the company.

An Allergan spokesman responded by email that the company stood by its comments.

“We call on Valeant to report complete and transparent details on its business on an ongoing basis,” the spokesman said. “At the end of the day, investors will make their own decisions.”

The drugmaker also said on Monday that it raised its forecast for adjusted 2014 earnings to between $5.74 and $5.80 per share from a range of $5.64 to $5.73 that it predicted in May. It expects Botox to deliver net sales ranging from $2.2 billion to $2.28 billion.

Botox is known best for its ability to smooth frown lines on aging foreheads, but it also is approved to treat neck spasms, eye muscle disorders, migraines and other conditions.

Shares of Allergan climbed 2.3 percent, or $3.90, to $171.30 Monday afternoon, while U.S.-traded shares of Valeant also were up 3 percent, or $3.69, to $125.66.

Allergan to cut 1,500 employees in restructuring

KDWN

Botox maker Allergan will cut about 13 percent of its workforce, or roughly 1,500 employees, as part of a push to become more efficient and productive.

The Irvine, California, company also said Monday it plans to eliminate about 250 vacant positions in a restructuring that will streamline its business and allow the drugmaker to focus on its “highest value opportunities.”

Allergan, which is fighting a takeover bid from Valeant Pharmaceuticals, announced the cuts the same day it also said second-quarter earnings grew 16 percent to $417.2 million, or $1.37 per share, and revenue jumped 17 percent to $1.86 billion.

Both earnings and revenue trumped analyst expectations, according to FactSet.

The drugmaker also raised its forecast for adjusted 2014 earnings to between $5.74 and $5.80 per share from a range of $5.64 to $5.73 that it predicted in May. Analysts expect, on average, $5.71 per share.

Allergan said its restructuring will yield annual pre-tax savings of about $475 million in 2015, while costs tied to it will total between $375 million and $425 million.

The Canadian drugmaker Valeant Pharmaceuticals International Inc. and investment firm Pershing Square Capital Management have made several bids to buy Allergan, the latest amounting to about $53 billion in cash and stock.

Allergan has said the offers “substantially undervalue” the company and create big risks for its shareholders. It also has adopted a “poison pill” measure to block a takeover.

Pershing Square wants to hold a special meeting where Allergan shareholders can have a say in the buyout bid and on the company’s direction.

In the takeover battle’s latest twist, Valeant said Monday it has complained to regulators that Allergan has been making false statements about its business even though Valeant has publicly corrected it.

Valeant said the latest example of these statements involves the performance of contact lens maker Bausch + Lomb, which Valeant acquired last year. Valeant said Allergan has falsely asserted that the business’s pharmaceutical sales were stagnant or declining when it actually grew in the second quarter.

“We can no longer tolerate unjustified attacks on Valeant’s business and strongly believe we are obligated to take action to protect Valeant shareholders from Allergan’s apparent attempts to mislead investors and manipulate the market for Valeant stock,” Valeant Chairman and CEO J. Michael Pearson said in a statement from the company.

An Allergan spokesman responded by email that the company stood by its comments.

“We call on Valeant to report complete and transparent details on its business on an ongoing basis,” the spokesman said. “At the end of the day, investors will make their own decisions.”

Valeant has complained to the Securities and Exchange Commission and regulators in the Canadian province of Quebec, where Valeant is based.

Shares of Allergan climbed 35 cents to $167.75 Monday at the start of trading. The stock had already climbed 51 percent so far this year as of Friday’s close, beating the 7 percent gain from the Standard & Poor’s 500 index over the same period.

Allergan to cut 1,500 employees in restructuring

KDWN

Botox maker Allergan will cut about 13 percent of its workforce, or roughly 1,500 employees, as part of a push to become more efficient and productive.

The Irvine, California, company also said Monday it plans to eliminate about 250 vacant positions in a restructuring that will streamline its business and allow the drugmaker to focus on its “highest value opportunities.”

Allergan, which is fighting a takeover bid from Valeant Pharmaceuticals, announced the cuts the same day it also said second-quarter earnings grew 16 percent to $417.2 million, or $1.37 per share, and revenue jumped 17 percent to $1.86 billion.

Both earnings and revenue trumped analyst expectations, according to FactSet.

The drugmaker also raised its forecast for adjusted 2014 earnings to between $5.74 and $5.80 per share from a range of $5.64 to $5.73 that it predicted in May. Analysts expect, on average, $5.71 per share.

Allergan said its restructuring will yield annual pre-tax savings of about $475 million in 2015, while costs tied to it will total between $375 million and $425 million.

The Canadian drugmaker Valeant Pharmaceuticals International Inc. and investment firm Pershing Square Capital Management have made several bids to buy Allergan, the latest amounting to about $53 billion in cash and stock.

Allergan has said the offers “substantially undervalue” the company and create big risks for its shareholders. It also has adopted a “poison pill” measure to block a takeover.

Pershing Square wants to hold a special meeting where Allergan shareholders can have a say in the buyout bid and on the company’s direction.

In the takeover battle’s latest twist, Valeant said Monday it has complained to regulators that Allergan has been making false statements about its business even though Valeant has publicly corrected it.

Valeant said the latest example of these statements involves the performance of contact lens maker Bausch + Lomb, which Valeant acquired last year. Valeant said Allergan has falsely asserted that the business’s pharmaceutical sales were stagnant or declining when it actually grew in the second quarter.

“We can no longer tolerate unjustified attacks on Valeant’s business and strongly believe we are obligated to take action to protect Valeant shareholders from Allergan’s apparent attempts to mislead investors and manipulate the market for Valeant stock,” Valeant Chairman and CEO J. Michael Pearson said in a statement from the company.

An Allergan spokesman responded by email that the company stood by its comments.

“We call on Valeant to report complete and transparent details on its business on an ongoing basis,” the spokesman said. “At the end of the day, investors will make their own decisions.”

Valeant has complained to the Securities and Exchange Commission and regulators in the Canadian province of Quebec, where Valeant is based.

Shares of Allergan climbed 35 cents to $167.75 Monday at the start of trading. The stock had already climbed 51 percent so far this year as of Friday’s close, beating the 7 percent gain from the Standard & Poor’s 500 index over the same period.

Allergan to cut 1,500 employees in restructuring

KDWN

Botox maker Allergan will cut about 13 percent of its workforce, or roughly 1,500 employees, as part of a push to become more efficient and productive.

The Irvine, California, company also said Monday it plans to eliminate about 250 vacant positions in a restructuring that will streamline its business and allow the drugmaker to focus on its “highest value opportunities.”

Allergan, which is fighting a takeover bid from Valeant Pharmaceuticals, announced the cuts the same day it also said second-quarter earnings grew 16 percent to $417.2 million, or $1.37 per share, and revenue jumped 17 percent to $1.86 billion.

Both earnings and revenue trumped analyst expectations, according to FactSet.

The drugmaker also raised its forecast for adjusted 2014 earnings to between $5.74 and $5.80 per share from a range of $5.64 to $5.73 that it predicted in May. Analysts expect, on average, $5.71 per share.

Allergan said its restructuring will yield annual pre-tax savings of about $475 million in 2015, while costs tied to it will total between $375 million and $425 million.

The Canadian drugmaker Valeant Pharmaceuticals International Inc. and investment firm Pershing Square Capital Management have made several bids to buy Allergan, the latest amounting to about $53 billion in cash and stock.

Allergan has said the offers “substantially undervalue” the company and create big risks for its shareholders. It also has adopted a “poison pill” measure to block a takeover.

Pershing Square wants to hold a special meeting where Allergan shareholders can have a say in the buyout bid and on the company’s direction.

In the takeover battle’s latest twist, Valeant said Monday it has complained to regulators that Allergan has been making false statements about its business even though Valeant has publicly corrected it.

Valeant said the latest example of these statements involves the performance of contact lens maker Bausch + Lomb, which Valeant acquired last year. Valeant said Allergan has falsely asserted that the business’s pharmaceutical sales were stagnant or declining when it actually grew in the second quarter.

“We can no longer tolerate unjustified attacks on Valeant’s business and strongly believe we are obligated to take action to protect Valeant shareholders from Allergan’s apparent attempts to mislead investors and manipulate the market for Valeant stock,” Valeant Chairman and CEO J. Michael Pearson said in a statement from the company.

An Allergan spokesman responded by email that the company stood by its comments.

“We call on Valeant to report complete and transparent details on its business on an ongoing basis,” the spokesman said. “At the end of the day, investors will make their own decisions.”

Valeant has complained to the Securities and Exchange Commission and regulators in the Canadian province of Quebec, where Valeant is based.

Shares of Allergan climbed 35 cents to $167.75 Monday at the start of trading. The stock had already climbed 51 percent so far this year as of Friday’s close, beating the 7 percent gain from the Standard & Poor’s 500 index over the same period.

Allergan to cut 1,500 employees in restructuring

KDWN

Botox maker Allergan will cut about 13 percent of its workforce, or roughly 1,500 employees, as part of a push to become more efficient and productive.

The Irvine, California, company also said Monday it plans to eliminate about 250 vacant positions in a restructuring that will streamline its business and allow the drugmaker to focus on its “highest value opportunities.”

Allergan, which is fighting a takeover bid from Valeant Pharmaceuticals, announced the cuts the same day it also said second-quarter earnings grew 16 percent to $417.2 million, or $1.37 per share, and revenue jumped 17 percent to $1.86 billion.

Both earnings and revenue trumped analyst expectations, according to FactSet.

The drugmaker also raised its forecast for adjusted 2014 earnings to between $5.74 and $5.80 per share from a range of $5.64 to $5.73 that it predicted in May. Analysts expect, on average, $5.71 per share.

Allergan said its restructuring will yield annual pre-tax savings of about $475 million in 2015, while costs tied to it will total between $375 million and $425 million.

The Canadian drugmaker Valeant Pharmaceuticals International Inc. and investment firm Pershing Square Capital Management have made several bids to buy Allergan, the latest amounting to about $53 billion in cash and stock.

Allergan has said the offers “substantially undervalue” the company and create big risks for its shareholders. It also has adopted a “poison pill” measure to block a takeover.

Pershing Square wants to hold a special meeting where Allergan shareholders can have a say in the buyout bid and on the company’s direction.

In the takeover battle’s latest twist, Valeant said Monday it has complained to regulators that Allergan has been making false statements about its business even though Valeant has publicly corrected it.

Valeant said the latest example of these statements involves the performance of contact lens maker Bausch + Lomb, which Valeant acquired last year. Valeant said Allergan has falsely asserted that the business’s pharmaceutical sales were stagnant or declining when it actually grew in the second quarter.

“We can no longer tolerate unjustified attacks on Valeant’s business and strongly believe we are obligated to take action to protect Valeant shareholders from Allergan’s apparent attempts to mislead investors and manipulate the market for Valeant stock,” Valeant Chairman and CEO J. Michael Pearson said in a statement from the company.

An Allergan spokesman responded by email that the company stood by its comments.

“We call on Valeant to report complete and transparent details on its business on an ongoing basis,” the spokesman said. “At the end of the day, investors will make their own decisions.”

Valeant has complained to the Securities and Exchange Commission and regulators in the Canadian province of Quebec, where Valeant is based.

Shares of Allergan climbed 35 cents to $167.75 Monday at the start of trading. The stock had already climbed 51 percent so far this year as of Friday’s close, beating the 7 percent gain from the Standard & Poor’s 500 index over the same period.

Allergan to cut 1,500 employees in restructuring

KDWN

IRVINE, Calif. (AP) — Botox-maker Allergan says it is cutting about 13 percent of its workforce, or roughly 1,500 employees, as part of a push to become more efficient and productive.

The Irvine, California, company also says it will eliminate about 250 vacant positions. The company says its restructuring plan will yield annual pre-tax savings of about $475 million in 2015, but costs tied to it will total between $375 million and $425 million.

Allergan Inc. also says its second-quarter earnings grew 16 percent to $417.2 million, or $1.37 per share. Its revenue also climbed more than 16 percent to $1.86 billion.

Allergan is fending off acquisition bids from Canadian drugmaker Valeant Pharmaceuticals International Inc. in an aggressive takeover battle that has drawn complaints from Valeant over statements Allergan has made about its business.