Warner Chilcott Takes Itself Off The Market; Special Dividend Disappoints
This article was originally published in The Pink Sheet Daily
Warner Chilcott has ended all discussions with parties potentially interested in buying the company and tried to satisfy investors with a special dividend as a consolation prize.
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Actavis’ purchase of Warner Chilcott will lower the former’s overall tax rate significantly, expand its specialty pharma business to 25% of total revenues, and provide global critical mass – all necessary responses to a future that includes fewer opportunities for small molecule generics and greater pricing pressures.
The rumored combination of Actavis and Warner Chilcott, with Actavis to re-domicile as an Irish firm for tax benefits, came to fruition May 20. Warner Chilcott CEO Boissonneault said the deal resulted from a long friendship with Actavis’ Bisaro and did not come together overnight.
Meanwhile, companies like Mylan and Novartis also reportedly have joined the Actavis chase. In addition, there’s been deal-making news from Elan and Theravance, Merck-Serono and Quintiles, and AbbVie and Alvine.