Allergan (AGN), the maker of Botox, has rejected the latest takeover bid by Valeant Pharmaceuticals, saying the offer still undervalues the $49 billion Botox maker, the company said Tuesday.
Valeant, which partnered with William Ackman’s Pershing Square Capital in its acquisition bid, boosted its offer to about $52.7 billion in cash and stock last month.
David Pyott, chief executive of Allergan, said the offer doesn’t reflect the drug maker’s growth prospects and doesn’t offer enough value to bring Allergan into discussions. He also said the deal creates significant risks that aren’t in shareholders’ best interests, citing Valeant’s “unsustainable business model” that relies on ongoing acquisitions to drive growth.