Pershing Square Activist Presentation Deck
Allergan's Acquisition Track Record is
Questionable - MAP Pharmaceuticals (Levadex)
Forty-six days after Allergan spent $872 million to acquire Levadex,
the FDA rejected Allergan's second request to market the drug
▸ In January 2011, Allergan and MAP Pharmaceuticals ("MAP") established a
50/50 partnership to develop Levadex
■ The FDA rejected the companies' first request to market Levadex in March
2012, citing concerns about manufacturing of the product's inhaler
▸ On March 1st, 2013, Allergan acquired MAP for $872 million
▸
On April 16th, 2013, the FDA rejected Allergan's second request to market
Levadex, citing nearly identical concerns about the inhaler
■ In order to improve the quality of the inhaler device, Allergan spent an
additional $20 million to acquire Exemplar Pharma, maker of the inhaler
On June 30th, 2014, Allergan reported that the FDA had rejected Levadex a
third time
While Levadex is likely to be approved at some point, Allergan has lost at least
three years of peak-year market exclusivity, an estimated $1.5bn of sales (¹), and
has allowed a competing product to enter their product launch window
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(1) Based on Allergan management estimate of peak-year sales of $500 million.View entire presentation