Tax Benefits Highlight Announced Merger Of Valeant And Biovail
This article was originally published in The Pink Sheet Daily
Executive SummaryA deal that would combine two smaller specialty pharmas into one will result in a company with four main business areas.
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Valeant has begun the search for a new CEO, who will be charged with turning around the troubled company and likely divesting some assets. The company also calls out former CFO Howard Schiller for “improper conduct.”
Even as private equity firms reach into specialty pharma niche opportunities for deals, specialty pharma companies are evolving, as well. Valeant Pharmaceuticals is a very visible example of one kind of specialty pharma model, which is based as much upon sophisticated financial engineering as product growth.
Perrigo is using Elan’s beneficial tax rates to launch its international expansion and the royalty stream from Tysabri to help fund those M&A endeavors, but is not dramatically changing its OTC focus.