Pershing Square Activist Presentation Deck
Allergan's Acquisition Track Record is
Questionable - Inamed
Allergan sold nearly a third of the largest business it ever acquired for
3.3% of the aggregate purchase price
► In 2005, Allergan acquired Inamed Corporation for $3.3 billion
At the time of the acquisition, the obesity intervention business or LAP-
BAND franchise represented approximately 30% of total Inamed sales
Post-acquisition, LAP-BAND was shown to be less effective than
alternative therapies and insurers stopped covering it
► In 2013, Allergan sold its obesity intervention business for $110
million and recorded a $408 million pre-tax loss on the sale
■ ~80% of the net book value(1) of the business was written off
► In addition, sales in Inamed's largest division, Natrelle breast
aesthetics, profoundly disappointed with sales falling ~36% below
Wall Street analyst expectations by 2010 (²)
As the only major acquisition during David Pyott's tenure, Inamed is not
an encouraging example of management's M&A acumen
Source: Company filings, press releases
(1) Based on the book value as of 12/31/2012 related to the obesity intervention business unit.
(2) 2010 actual sales compared to analysts revenue consensus on the same year sales as of three months after the acquisition in 2006.
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