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Valeant Drags Regulators Into Allergan Fight

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Valeant Pharmaceuticals Intl Inc (NYSE:VRX) said it has officially complained to regulators in the U.S. and Canada about statements Allergan, Inc. (NYSE:AGN) made. CNBC reports that Valeant has filed official complaints with the Securities and Exchange Commission and the Autorite des Marches Financiers in Canada.

Valeant complains about Allergan

According to MarketWatch, the complaints were related to comments Allergan made about Valeant’s Bausch + Lomb segment. The Botox maker said sales of that division were either falling or stagnant. However, Valeant reports about 6% growth for that segment during the segment. The drug maker also reported a 17% increase in prescription pharmaceutical sales.

Valeant CEO J. Michael Pearson said in a statement, “We do not believe that it is productive for either company to conduct due diligence in a public forum and although we have consistently offered Allergan the opportunity to conduct due diligence on our business, its management and board have refused, and have instead chosen to make misrepresentations and false statements about our business.”

CNBC reports that former SEC chief Robert Khuzami is leading the charge for Valeant Pharmaceuticals to acquire Allergan.

Valeant, Allergan continue fighting

Valeant has offered $53 billion to buy out Allergan. However, the Botox maker’s board of directors has refused to engage with Valeant. Last week, activist investor Bill Ackman held a webcast to again tell shareholders that they should call for a special meeting. Ackman’s firm has teamed up with Valeant in trying to acquire Allergan. He maintains that Allergan has made it too difficult for Allergan shareholders to call a special meeting.

The company adopted a poison pill not long after Pershing Square Capital Management and Valeant announced their unsolicited bid for Allergan. That shareholder rights plan diluted the value of Allergan shares for anyone who acquired at least a 10% stake.

Allergan reports earnings

This morning Allergan released its latest earnings report, posting results that were much greater than expected. The drug maker posted earnings of $1.51 per share on $1.83 billion in revenue. Allergan also reported plans to slash its global workforce by 13%.

Shares of both companies were little moved in premarket trading this morning.

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