Valeant goes even further, upping recently sweetened offer for Allergan

Even before it received an official response from its takeover target US Botox-maker Allergan (NYSE: AGN), acquisitive Canadian drugmaker Valeant Pharmaceuticals International (TSX: VRX) has - for the second time within a matter of days - raised its offer price for the company.

On Friday, Allergan acknowledged that Valeant and Pershing Square Capital Management have made a second revised, unsolicited proposal to acquire all of the outstanding shares of the company for a combination of 0.83 of Valeant common shares, $72.00 in cash per share of common stock of the company, and a contingent value right (CVR) related to sales of Allergan’s age-related macular degeneration DARPin, valuing Allergan at about $53.8 billion). Allergan said it will carefully review the news offer once it has been received.

This offer is up from its recently revised bid of $58.30 per share in cash, while maintaining the stock component at 0.83 shares of Valeant stock. Valeant's original proposal was of 48.30 per share in cash plus 0.83 shares of Valeant common stock and no CVR, which was  formally rejected by the Allergan board. Allergan told investors on a May 12 conference call that its eye drug DARPin has the potential for $2 billion of cumulative sales in its first 10 years on the market, reports Bloomberg.