http://www.allergan.com/assets/pdf/investor-presentation-may-27-2014.pdf
Allergan files investor presentation detailing concerns about the sustainability of Valeant's (VRX) business model; presentation raises significant issues to be considered when evaluating the value of VRX equity
8:15 AM ET, 05/27/2014 - Briefing.com
Co announced that it has filed an investor presentation with the SEC and posted the presentation under the "Investors" section of the Company's website detailing its initial concerns about the sustainability of Valeant Pharmaceuticals International (VRX) business model.Allergan retained two nationally-recognized financial consultants and forensic accountants, Alvarez & Marsal and FTI Consulting, to evaluate certain concerns about the inherent value of Valeant's business model and stock. With the assistance of these two independent firms, and in response to feedback from numerous Allergan stockholders and analysts, Allergan and its legal and financial advisors carefully analyzed publicly available data on Valeant and the opaque nature of Valeant's pro-forma driven financial reporting.
Allergan believes that Valeant's organic sales growth, which is primarily driven by price increases, is overstated based on changing definitions and classifications with no disclosure of key products. The pro-forma revenue growth from Valeant's SEC filings paints a picture far different from what is communicated to investors. Valeant's pro-forma revenue growth including acquisitions for fiscal year 2013 was -0.5%. In the first quarter of 2014, the growth rate declined to -1.4%.Valeant's multiple off-shore tax deferral structures are aggressive, difficult to sustain and compound risk in multiple jurisdictions. No other pharmaceutical or healthcare peers that have recently re-domiciled outside the U.S. have achieved tax rates nearly as low as Valeant, which suggests that Valeant's tax strategies are abnormally aggressive.
Allergan files investor presentation detailing concerns about the sustainability of Valeant's (VRX) business model; presentation raises significant issues to be considered when evaluating the value of VRX equity
8:15 AM ET, 05/27/2014 - Briefing.com
Co announced that it has filed an investor presentation with the SEC and posted the presentation under the "Investors" section of the Company's website detailing its initial concerns about the sustainability of Valeant Pharmaceuticals International (VRX) business model.Allergan retained two nationally-recognized financial consultants and forensic accountants, Alvarez & Marsal and FTI Consulting, to evaluate certain concerns about the inherent value of Valeant's business model and stock. With the assistance of these two independent firms, and in response to feedback from numerous Allergan stockholders and analysts, Allergan and its legal and financial advisors carefully analyzed publicly available data on Valeant and the opaque nature of Valeant's pro-forma driven financial reporting.
Allergan believes that Valeant's organic sales growth, which is primarily driven by price increases, is overstated based on changing definitions and classifications with no disclosure of key products. The pro-forma revenue growth from Valeant's SEC filings paints a picture far different from what is communicated to investors. Valeant's pro-forma revenue growth including acquisitions for fiscal year 2013 was -0.5%. In the first quarter of 2014, the growth rate declined to -1.4%.Valeant's multiple off-shore tax deferral structures are aggressive, difficult to sustain and compound risk in multiple jurisdictions. No other pharmaceutical or healthcare peers that have recently re-domiciled outside the U.S. have achieved tax rates nearly as low as Valeant, which suggests that Valeant's tax strategies are abnormally aggressive.