Getty Images
Industryweek 11131 Botox

Icahn Takes 'Large' Stake in Botox Maker Allergan

May 31, 2016
The activist investor typically buys shares in a company to influence its management strategy or when he sees a strong growth potential.

NEW YORK—Activist investor Carl Icahn revealed Tuesday a big stake in Botox maker Allergan, voicing confidence in the Ireland-based company's chief executive.

"We have recently acquired a large position in Allergan and are very supportive of CEO Brent Saunders," Icahn said in a brief statement. He did not disclose the size of the stake.

Shares in Allergan dipped 0.2% in afternoon trade to $235.54.

Icahn typically buys shares in a company to influence its management strategy or when he sees a strong growth potential.

He recently sold a stake in tech giant Apple and won a push to put allies on the board of directors at insurer American International Group.

In April, Allergan and Pfizer, the largest US drug maker, called off a $160-billion tie-up due to a fresh tightening of US rules on cross-border tax inversions, in which a company relocates its headquarters to a foreign country for tax advantages.

Icahn helped Saunders become CEO of Forest Laboratories a few years ago.

In mid-2014, Forest was acquired by Ireland-based Activis. Less than a year later Activis bought U.S.-based Allergan and adopted that name.

The string of mergers yielded "massive gains" for Forest shareholders, Icahn said.

"While we at that time disposed of our position in Forest, we still have always maintained great respect for Brent," he said. "We have every confidence in Brent's ability to enhance value for all Allergan shareholders."

Allergan's key products include Botox, for the medical treatment of spasticity and cosmetic treatment of wrinkles; Namenda, to enhance cognition; and Asacol, to treat ulcerative colitis.

Allergan expects to close the sale of its generics-drugs business Allergan Generics to Israeli firm Teva Pharmaceutical Industries soon, in a cash-and-stock deal valued at $40.5 billion when it was announced in July 2015.

Copyright Agence France-Presse, 2016

Popular Sponsored Recommendations

Process Mining For Dummies

Nov. 19, 2023
Here it is. Everything you need to know about process mining in a single book, written in the easy-to-understand, hard-to-forget style that ‘For Dummies’ manages so effortlessly...

Digitally Transforming Data and Processes With Product Lifecycle Management

Oct. 29, 2023
Manufacturers face increasing challenges in product development as they strive to consistently deliver improved results. Discover how industry leaders are improving time-to-market...

Gain a competitive edge with real-world lessons on private 5G networks

Nov. 16, 2023
The use of private networks in manufacturing applications is rapidly growing. In this paper, we present valuable insights and lessons learned from the field with the goal of enhancing...

Powering Up Productivity: The Transformative Power of AP Automation in Manufacturing

Oct. 25, 2023
Discover how AP Automation is revolutionizing the manufacturing industry, driving efficiency, cost savings, and security. In today's world, automation is the key to staying competitive...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!