Allergan lets insults fly at hostile suitor Valeant

The Valeant/Allergan takeover battle was already pretty heated, with the Canadian pharma taking its latest rejected offer to Allergan shareholders. But it's getting hotter, thanks to some layoffs, an exec exit, a lawsuit, a litany of barbs from Allergan ($AGN)--and yet another Valeant ($VRX) conference call.

• Allergan reiterated its concerns about Valeant's "unsustainable" business model Monday, this time invoking analysts, media and the like to underscore its point. Check out the release for a slew of excerpts, but here are a couple of choice examples: Valeant CEO J. Michael Pearson's operation is a "house of cards," says Morgan Stanley, and it "depends on people continuing to drink this Kool Aid," per Gimme Credit analyst Vicki Bryan. The bid itself? "Something from the Wizard of Oz," says Bronte Capital. Release
• The results of Valeant's latest blockbuster acquisition may be affirming Allergan's decision to stay away. Valeant loves a good chop job--buying a company, cutting out any expenses it deems extraneous, and moving onto the next--and its 2013 pickup Bausch + Lomb is currently under the knife. After hundreds of job cuts in the U.S. as the merger closed, employees at an Irish facility are now facing layoffs and pay cuts--and unions aren't happy. Story
• Valeant has already faced criticism from Allergan about its "significant management turnover," and now the Botox-maker has more ammo. EVP and company group chairman Ryan Weldon is on his way out, Valeant confirmed Friday; the company says Weldon's departure was planned and will take effect after Valeant closes the $1.4 billion sale of several injectable treatments to Nestlé. Report
• Valeant isn't about to let Allergan get the last word on its latest $53 billion offer. The company will host a conference call and webcast Tuesday to "refute recent misleading assertions" made by Allergan and others, as well as answer questions investors may have about its play for the specialty pharma. Release
• Valeant's activisit investor partner Bill Ackman wants to hold a special meeting to oust some of Allergan's directors. But first, he wants to make sure that meeting won't trigger the company's takeover defenses. Ackman's Pershing Square Capital Management Friday filed a lawsuit against Allergan, in search of confirmation that his request won't put a poison pill plan into play. More
• Some say investors of Valeant, whose stock is falling, may be looking to jump ship. But top Valeant shareholder ValueAct Capital says it's sticking by the company's side. "We believe in the company, management, and the deal in a huge way," ValueAct CEO Jeffrey Uben told Bloomberg Friday. "Someone said we are selling. This is not true."Report
• Valeant has long contended that R&D is risky and wasteful. But when it comes to applying these theories to Allergan, Valeant strikes out, according to Forbes' Matthew Herper. Late last week, he laid out a few of the company's research-related assertions--and refuted them all.Story