Yahoo Finance Farallon Capital Increases Position in Allergan
Highlights of Farallon Capital Management's 4Q14 Holdings (Part 5 of 12)
Farallon Capital and Allergan
Farallon Capital Management has increased its position in Allergan (AGN) by over $336 million. It represents 7.25% of the total portfolio in 4Q14, up from 3.13% in 3Q14.
Allergan makes up 0.37% of the SPDR S&P 500 ETF Trust (SPY), which tracks the overall performance of 500 publicly traded companies in the growth sector.
Overview of Allergan
Allergan develops and commercializes a variety of products for the ophthalmic, medical aesthetics, medical dermatology, and other specialty markets, including:
pharmaceuticals
biologics
medical devices
over-the-counter items
The global healthcare company also makes the anti-wrinkle treatment Botox.
Allergan’s operating results for 4Q14 beat estimates
In February 2015, Allergan announced its operating results for 4Q14. It reported $1.77 diluted earnings per share attributable to stockholders. In comparison, it reported $1.04 diluted earnings per share attributable to stockholders for 4Q13.
Allergan also reported product sales of $1,889 million, an increase of 13.8% compared to the same period in 4Q13. While the total specialty pharmaceuticals net sales increased 12.4% on a year-over-year basis, total core medical devices net sales increased 20.7%.
Allergan chairman and CEO David E.I. Pyott stated, “Allergan yet again recorded in the fourth quarter the strongest increase in absolute dollar sales in any quarter in our history, driven by exceptional performance across all of our businesses and geographic regions. This is a tribute to the focus of our employees during the unsolicited acquisition attempt.”
Allergan: A 4Q14 comparison
Allergan’s main competitors, particularly Novartis (NVS) and Johnson & Johnson (JNJ), declared their respective 4Q14 results. Earnings per share (or EPS) for NVS was $1.21, while for JNJ, it was $0.89. This is lower than Allergan’s EPS of $1.77.
Johnson & Johnson’s sales decreased by 0.6% on a year-over-year basis, and Novartis’s sales fell by 1.96% over 4Q13.
Shareholders approve Allergan–Actavis merger
In November 2014, generic drug maker Actavis (ACT) agreed to buy Allergan for $66 billion, or $219 per share in cash and stocks. The acquisition price was 10% above Allergan’s closing price on November 14.
On March 10, 2015, the shareholders of both firms approved the merger and other proposals regarding the acquisition deal. The combined entity will become the largest pharmaceutical company by sales, generating annual revenues of $23 billion.
The next article in this series explores Farallon Capital’s position in TRW Automotive Holdings.
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