UPDATED: Beauty is an Ugly Business: Infographic Valeant, Allergan & Mentor
BREAKING: July 21, 2104
Large Allergan Investor Sells Most of Stake
Capital Research and Management’s Sales Come Amid Valeant’s Takeover Bid for Botox Maker-The Wall Street Journal. Well someone’s taking their toys and going home in protest.
Also announced today:
The embattled Allergan said that it would lay off around 1,500 employees and eliminate some 250 vacant positions in a larger restructuring effort that the company estimates could save around $475 million in the 2015 calendar year.
Interestingly though no one mentions Johnson & Johnson’s DePuy Sythes 400 laid off employees in Q2 despite 14% profit increase or laid off employees from Johnson & Johnson’s Mentor despite 8% profit increase in Q1.
Valeant dropped a new bomb on Allergan this week, taking to the SEC as well as regulatory authorities in Quebec to accuse Allergan of making “false and misleading statements” to deter shareholders from Valeant’s share purchase offer. The companies have been battling it out in sparring press statements and shareholder memos ever since Valeant approached Allergan in April. Mass Device
Valeant running to mommy after they started the fight is not only ironic, it should but an end to this once and for all-provided the SEC is paying attention.
UPDATED: July 19,2014
And a classic straight from The Sociopathic Business Model™, once fear, intimidation and threats don’t work: Ackman to Shareholders: Valeant’s Offer Won’t Last Forever (Fierce Pharma)-the listen I’m doing this for you not me approach as a manipulation tactic. Once Allergan doesn’t take the bait it won’t take long before Ackman starts biting again.
“Valeant has a business to run,” he said (as quoted by Bloomberg), also citing a “very bullish credit environment” that can “change effectively overnight.” “What legitimate board of directors attempts to silence or otherwise delay hearing what its own shareholders have to say?” he wrote to the Board.
And he’s back to insulting and demeaning. Guess Ackman keeps forgetting he wants this deal and all signs point to Allergan not wanting the deal. Ackman’s “soft touch” approach to now appeal to the board is about as appealing as scrubbing sandpaper across an open flesh wound.
Herbalife TRUTH is also setting the record straight referring to Bill Ackamn as the Worst of Wall Street
An interesting look at an ill-fated bike ride gives an interesting look at Ackman and explains more of the situation with Herbalife from Vanity Fair.
UPDATED: July 7, 2014
If Ackman can’t bully into submission he’ll bulldoze right over those roadblocks better known as six Allergan Directors, by proposing new slate of Directors. How lucky for Allergan that Mr. Ackman already has some suggestions in mind as replacements. This makes Ackman not only look like a bully he also now looks desperate.
Allergan has resisted Valeant’s overtures, calling the company a “serial acquirer” that has fostered little organic growth. Allergan says it is poised to become more valuable than Valeant’s offer, thanks to a series of products now in the testing pipeline. Source: MarketWatch
June 27, 2104
Earlier this week seven U.S. senators called into question the Valeant hostile take over of Allergan. And as mentioned here Valeant’s side deal with Johnson & Johnson’s Ethicon’s Mentor truly could create a monopoly. Hopefully these infographics make the subject designed to be unclear a little more clear. Beauty is an ugly business and it may be a corrupt one as well. Still clear as mud?
It’s also interesting that on the Mentor website there is only one place it mentions Ethicon and Johnson & Johnson. Very unlike a company that spends billions on advertising not to take advantage of advertising on their own company’s site; and, especially when they took advantage of releasing an advertising campaign “For All You Love,” around Mother’s Day, the same year they were fined $2.2billion for Risperdal where 31 children died and another 1,200 seriously injured.
And it’s not too shocking that Valeant’s been accused of cooking the books. Remember the former Scottsdale Medicis CEO Jonah Schacknai and the unusual circumstances surrounding his son’s death followed by his girlfriend’s death days later (naked hanging outside) have left many suspecting there is more to both the deaths and the Medicis books.
Death: Rebecca Zahau, 32, left, died at the mansion of Jonah Shacknai, 54, right in Coronado, California, in July, just two days after his son Max, 6, who she was looking after, was gravely hurt from a fall off the stairs
But one thing was clear Valeant wanted no part of Schacknai after the sale of he company. It’s not uncommon for the CEO to stay for a transition period but:
As part of the deal closing, Medicis founder and CEO Jonah Shacknai is no longer a director of Medicis. According to Medicis’ proxy statement issued in April, if there is a change in control of Medicis and Shacknai does not stay with the new controlling company, he will receive salary and bonus totaling $6.7 million, as well as health benefits for the rest of his life, administrative support and other equity awards totaling $30.7 million.
Valeant bought him off and some suspect Schacknai bought someone off as well. This story was widely ignored in AZ and Southern CA but the UK did a great job of offering up the details. If it was murder, he wouldn’t be the first CEO to get away with it.
Doubts: Leading pathologist Dr Cyril Wecht raised questions about the suicide ruling (file picture)