Valeant Pharmaceuticals ups offer for Allergan to $49.5 billion

IRVINE, Calif., May 28 (UPI) -- Valeant Pharmaceuticals is sweetening its deal to take over botox-maker Allergan by increasing the cash component by $10 a share to $58.30.

The increased cash ups Valeant's earlier deal by $4.5 billion to $49.5 billion, putting the new offer at $166.16 a share, up 8.6 percent. The offer comes as Nestle will buy the sales rights to some of Valeant's skin care products for $1.4 billion in a separate offer.

Valeant is getting more aggressive with its takeover plan as Allergan's board has been defensive against the deal questioning Valeant's business model and stock price.

"Our discussions with Allergan's shareholders, many of whom are also our shareholders, have continued to express enthusiasm about our potential business combination," J. Michael Pearson, Valeant's chief executive, wrote in a letter to his counterpart at Allergan, David Pyott. "We ask you once again to enter into discussions with us promptly so that we can consummate this mutually beneficial transaction in a timely manner."

Valeant has largely shunned research and development spending but said it would invest $400 million in the development of DARPin, a drug in trials called by Allergan's CEO David Pyott as "potentially the biggest single product opportunity that has ever faced the company."