Allergan customers praise rejection of Valeant proposal

Irvine, CA and Laval, Quebec-Allergan has received a strong outpour of support from its physician customers, their nurses, and office staff members, as well as from patient advocacy groups and medical associations following the company’s rejection of Valeant Pharmaceuticals International’s unsolicited acquisition proposal.

More than 500 letters of support were sent to Allergan to express gratitude following the rejection, the company said in a prepared statement.

“Allergan is extremely grateful for the hundreds of letters of support we have received from our customers during the past few weeks,” said David E.I. Pyott, chairman of Allergan’s board and its chief executive officer. “All of us . . . are touched that our customers have taken the time to write to tell us that our work has mattered to them and their patients, and to publicly share their support and encouragement for our company’s business model and our promising future.”

The company’s board unanimously rejected the Valeant offer earlier this month, as it had said the proposal “substantially undervalues Allergan, creates significant risks and uncertainties for the stockholders of Allergan based on, among other things, the unsustainability of Valeant’s acquisition-based strategy, and is not in the best interest of the company and its stockholders.”

However, Valeant is not backing down, as the company announced it will host an in-person meeting for both companies’ shareholders, scheduled for Wednesday at 8 a.m. ET in New York.

In its own prepared statement, Valeant said the meeting is in response to assertions Allergan has made that the company’s model is not sustainable, that the Bausch + Lomb portfolio is not growing, that Valeant slashes research and development, and is not committed to innovation, as well as that it will be impossible to capture $2.7 billion of synergies without impacting top-line growth.

“We continue to believe that a Valeant and Allergan merger will be a powerful combination for all stakeholders, including patients, physicians and health-care providers, employees, and shareholders,” the company said.

During the meeting, Valeant said it intends to announce an improved bid for Allergan shareholders to consider.

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