Allergan, Inc. (NYSE:AGN) has piled more fuel on the fire as it tries to battle the hostile offer from Valeant Pharmaceuticals Intl Inc (NYSE:VRX). The Botox maker sharply increased its full year and third quarter earnings guidance early this morning, saying that this proves that Valeant’s offer undervalues it.

Allergan

Allergan raises guidance

In this morning’s press release, Allergan said it now expects non-GAAP earnings per share to be between $1.76 and $1.78 per share. That’s an increase of 42% to 45% over the previous guidance of between $1.44 and $1.47 per share. The Botox maker now projects a 17% increase in net sales year over year for the third quarter.

For the full year, Allergan is now projecting earnings of between $6.20 and $6.25 per share. That’s a 30% to 31% increase year over year. In net sales, the company projects a 14% to 15% increase in net sales year over year. Allergan said the percentage reflects continued negative impacts from the improving strength of the dollar in the fourth quarter of this year.

Allergan has not yet scheduled its third quarter earnings call. The company will release its final results on that date.

For the full year 2015, the company projects about $8.60 per share in non-GAAP earnings, and for 2016, Allergan expects non-GAAP earnings of about $10.25 per share.

Allergan continues to defend against Valeant, Ackman

This week it was reported that Valeant Pharmaceuticals, in partnership with activist investor Bill Ackman, is considering raising its bid for Allergan by $15 per share. That would assign a value of over $56 billion to the Botox maker and potentially make it the year’s biggest deal if it ends up being completed.

This morning’s press release suggests that Allergan may reject that increased offer as well, although there’s been no word on how high of a value the company’s board is seeking from Valeant or if they will accept any offer at all.

“Today’s announced expectations for the third quarter and updated future outlook further demonstrate that there is a vast value gap between Valeant’s offer and the intrinsic value of Allergan,” Allergan Chairman and CEO David E.I. Pyott said in a statement. “The Company continues to perform exceptionally well, driven by accelerating sales growth since early 2013 across a broad range of products and geographies.”

There have been reports that Allergan is seeking to make an acquisition of its own, perhaps Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP), in order to make itself too large for Valeant to swallow.