Allergan Says Its Conclusion On Valeant's Offer Remains Unchanged - Quick Facts

(RTTNews) - Allergan Inc. (AGN) said its conclusion that Valeant Pharmaceuticals' (VRX, VRX.TO) offer is grossly inadequate and substantially undervalues Allergan remains unchanged. Allergan continues to believe strongly that Valeant's offer does not appropriately reflect the underlying value of Allergan's assets, operations and prospects, including Allergan's franchises of global scale and its projected growth opportunities.

There has recently been significant and potentially distracting market speculation regarding Allergan. So, as the Company's Board of Directors, it thinks it is important to reiterate its unanimous perspective.

"As a Board, we have a longstanding track record of consistently acting in the best interests of Allergan's stockholders by delivering superior performance as prudent stewards of capital. Thus, while we will not comment on market rumors or speculation, we remain focused on our shared commitment to enhancing stockholder value," the company said in a statement.

Allergan noted that since Valeant first made its unsolicited proposal to acquire Allergan on April 22, 2014, Allergan's already leading growth trajectory has been accelerated through Operational excellence, Outstanding sales growth in the second quarter of 2014, Exceeding and raising guidance, a restructuring and value creation plan that will significantly reduce costs by approximately $475 million annually relative to Allergan's prior strategic plan, while preserving the strength of the Company's R&D pipeline and its ability to deliver double digit sales growth during the next five years.

Over the same five year period, Allergan expects to generate compounded annual adjusted earnings per share growth of more than 20 percent, which translates into $10.00 per share of adjusted EPS in 2016. Importantly, Allergan's strategic plan will also generate considerable free cash flow of approximately $18 billion during the period, which provides significant upside to current earnings per share targets.