Allergan Plc, maker of the anti-wrinkle injection Botox, is hunting for smaller acquisitions to boost growth after its planned $160 billion merger with Pfizer Inc. fell through this year.
"We will be looking at buying intellectual property, R&D assets and of course M&A," Allergan Chief Executive Officer Brent Saunders said in a Bloomberg Television interview in Shanghai on Wednesday. "With respect to M&A, we will be looking at more smaller-scale tuck-in deals that will support our therapeutic area leadership and innovation."
In April, Allergan and Pfizer ended plans to merge after officials in Washington moved to crack down on corporate inversions. Allergan is in the final stages of closing its $40 billion deal to sell its generic-drug business to Israel’s Teva Pharmaceutical Industries Ltd., and will have $20 billion to invest for growth and innovation after that, Saunders said.
"Some portion of that is certainly open for investments in China and in Asia across the board," Saunders said. "We just have to find the right assets that really complement our strategy of being a growth pharma leader and of course leading in our therapeutic areas like medical aesthetics, dermatology and eye care."
Allergan is run from New Jersey but has a legal domicile in Dublin. The immediate impact from Britain’s decision to leave the European Union is minimal and the company has no plans to change the way it operates in the U.K., Saunders said.
— With assistance by Yvonne Man, and Hui Li