Actavis completes $70.5 billion acquisition of Allergan

Actavis announced today that it has completed its acquisition of Allergan in a transaction valued at approximately $70.5 billion in cash and equity.

In a separate press release, the company also announced two former members of the Allergan board of directors, Michael R. Gallagher, lead independent director, and Peter J. McDonnell, MD, have been named to the Actavis board of directors. David E.I. Pyott, chairman and CEO of Allergan, elected not to join the board of directors but will continue to serve as chairman of The Allergan Foundation, a U.S.-based private charitable foundation, the release stated.

The acquisition creates one of the world’s top-10 pharmaceutical companies according to sales revenue, with combined annual pro forma revenues of more than $23 billion anticipated in 2015, according to a joint press release from the companies.

“The combination of Actavis and Allergan creates an exceptional global pharmaceutical company and a leader in a new industry model: growth pharma,” Brent Saunders, CEO and president of Actavis, said in the release.

The combined company has six blockbuster franchises with anticipated combined pro forma 2015 revenues of approximately $15 billion and includes franchises with annual revenues in excess of $3 billion in eye care, neurosciences/central nervous system and medical aesthetics/dermatology/plastic surgery, according to the release.

Its portfolio of brands include Botox (onabotulinumtoxin-A), Restasis (cyclosporine ophthalmic emulsion), Juvéderm (cross-linked hyaluronic acid), Namenda XR (memantine HCI extended-release), Linzess (linaclotide) and Lo Loestrin Fe (norethindrone acetate and ethinyl estradiol tablets, ethinyl estradiol tablets and ferrous fumarate tablets).

“I want to offer my sincere appreciation to David Pyott for his support and hard work in leading Allergan to this historic combination,” Saunders said in the separate release. “His tremendous leadership and impact during his more than 17 years with company have transformed Allergan into one of the leading health care companies in the world.”

Actavis initially announced its planned acquisition of Allergan in November, which then had an estimated value of $66 billion.

In February, Actavis announced it intends to adopt Allergan as its corporate name and for its global branded pharmaceutical portfolio. However, select geographic regions and product portfolios will retain the Actavis name, according to a separate press release at that time.

References: www.actavis.com, www.allergan.com.