Latest / Bloomberg Intelligence / Bloomberg's Damouni on Valeant, Allergan, Medivation (Audio)

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Bloomberg's Damouni on Valeant, Allergan, Medivation (Audio) · Bloomberg Intelligence

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  Speaker 1: that's a Bloomberg business flash. You're listening to taking stock
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  Speaker 1: with Kathleen Hayes and Pim Fox on Bloomberg Radio. This
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  Speaker 1: Shares of Valley and Pharmaceuticals are down more than four
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  Speaker 1: percent today, even as the company's chief executive, Joe Papa,
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  Speaker 1: speaks at the UBS, a global healthcare conference in New York.
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  Speaker 1: This is taking stock on Bloomberg. I'm Pim Fox, my
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  Speaker 1: co host Kathleen Hayes, and we are live in Tucson,
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  Speaker 1: Arizona for b n Y Melon Asset Servicings twenties sixteen
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  Speaker 1: client Conference. Sacha Damuni joins us now Bloomberg Pharmaceuticals, health
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  Speaker 1: Care and First Word Healthcare reporter for Bloomberg, joining us
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  Speaker 1: from Bloomberg World Headquarters in New York. Sasha, thanks very
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  Speaker 1: much for spending time with us. You are spending time
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  Speaker 1: earlier at the UBS Healthcare Conference. What what did Valiant
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  Speaker 1: Pharmaceuticals not say that investors were looking for? It was
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  Speaker 1: a good morning at the UBS Healthcare conference. Valiant was
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  Speaker 1: their Allergan was there in metivation. So these are some
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  Speaker 1: really topical companies that everyone's looking at in terms of investors.
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  Speaker 1: So what's happening with Valiant is we want to really
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  Speaker 1: get a feel of what Joe Papa, he's been at
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  Speaker 1: his tenures as the CEO for a few weeks now
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  Speaker 1: and he sort of had a neutral stance on what's
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  Speaker 1: going on. So he sort of said, look, we have
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  Speaker 1: a very good pipeline of new drugs. But he did
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  Speaker 1: say they haven't been fully appreciated. But then his second
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  Speaker 1: his second point was, look, we're working through the quote
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  Speaker 1: speed bumps with that with with Walgreens. So if you
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  Speaker 1: kind of look back Mike Pearson, the former CEO, his
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  Speaker 1: predecessor UM, he signed a pact with Walgreens for their dermatology,
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  Speaker 1: for the dermatology assets, and we're starting to see sales
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  Speaker 1: come in and UM and they they're just not looking
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  Speaker 1: good in terms of the prescriptions that are coming in.
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  Speaker 1: That the data is not reading right investors. So the
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  Speaker 1: real question is how is this major pact doing. What's
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  Speaker 1: it doing for the company. And he's just trying to
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  Speaker 1: get around it. So I think that we need to
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  Speaker 1: figure out what these speed bumps are. We need more
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  Speaker 1: color there. He also talked a bit or about his
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  Speaker 1: irrital boll syndrome product Za facts in UM. They said
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  Speaker 1: that's that's UM that that has strong patent protection and
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  Speaker 1: that's been a concern. And then the other thing UM
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  Speaker 1: obviously Valiant vault a company last year Spruce Spruce Pharma
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  Speaker 1: for Addie, which is their libido pill. They spent a
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  Speaker 1: billion dollars on this company and prescriptions have been lackluster.
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  Speaker 1: So he also said they're going to relaunch Addie. So
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  Speaker 1: let's watch the space on the Valiant commentary. Well, so
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  Speaker 1: Sasha just just sum it up for us in this sense.
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  Speaker 1: He focused on speed bumps with Walgreens and other things.
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  Speaker 1: But our investors satisfied that since Mike Pearson left, there
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  Speaker 1: was all the turmoil over accounting price increases, there was
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  Speaker 1: a now separate relationship with a controversial mail order pharmacy.
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  Speaker 1: Did they need to hear more about that or are
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  Speaker 1: they just willing to put that behind and look what's
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  Speaker 1: on the table now looking forward. No, I don't think
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  Speaker 1: they're ready to put anything behind in the In the
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  Speaker 1: case of Valiant, I think that a lot of investors
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  Speaker 1: were actually pretty disgruntled their questions with the company regarding
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  Speaker 1: the way Joe Papa left Parago. Obviously, Parago had um
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  Speaker 1: m N a UM offer on the table last year
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  Speaker 1: by Milan Uh the CEO walked away said look, look,
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  Speaker 1: I want to grow the company. I'm focused on on
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  Speaker 1: on on, you know, sort of focusing on what we're
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  Speaker 1: doing internally, and we're not going to sell the company.
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  Speaker 1: So investors are upset because shares kept declining after that
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  Speaker 1: he really didn't create shareholder value. So I think they're
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  Speaker 1: concerned that he walked away. He seemed disloyal to Parago.
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  Speaker 1: He brought down the shares in the last twelve months. Obviously,
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  Speaker 1: during his tenure there, the shares did increase, they did
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  Speaker 1: go up, but um, but in the last twelve months
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  Speaker 1: it's been pretty lackluster, and they had hoped that he
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  Speaker 1: could have selled to Myland. It's Sasha Allergan shares it
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  Speaker 1: down a little bit more than one and a half
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  Speaker 1: percent right now. Tell me what Brett Saunders, the chief
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  Speaker 1: executive Allergam, was talking about when I had to do
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  Speaker 1: with that generic business that's being sold to Tava Pharmaceuticals
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  Speaker 1: in Israel. So that was really the topic of the
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  Speaker 1: day and people were asking, what's going on with this
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  Speaker 1: forty billion dollar deal to sell its generics business to Tava.
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  Speaker 1: And it sounds pretty good, actually, it says um Brent
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  Speaker 1: Saunders said that the sale could close within weeks, and
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  Speaker 1: people have been concerned about antitrust issues. It's a huge deal,
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  Speaker 1: is going to make Tava a massive powerhouse and they're
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  Speaker 1: going to have to make divestitures. But from what it
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  Speaker 1: sounded like the body language was positive and the wording
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  Speaker 1: was positive. TAVA and the government have been working together
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  Speaker 1: on this constructively. So even though shares are down, obviously
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  Speaker 1: people were asking about M and A. He said they're
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  Speaker 1: not going to make large deals right now until there's
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  Speaker 1: more clarity on this. So he did say more deals
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  Speaker 1: are to come, more deals in the billions of dollar range.
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  Speaker 1: So still still sounds like an exciting year for allghan
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  Speaker 1: quick comment on metivation, Sasha Duty, So metivation, the buzz
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  Speaker 1: around metivation based clear. The CEO David Hung has a
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  Speaker 1: very high threshold for an M and A price, and
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  Speaker 1: it sounds as if it's going to be difficult for
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  Speaker 1: him to budge on coming down on that price. He's
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  Speaker 1: a founder, He's this is his darling, so he thinks
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  Speaker 1: that should go at evaluation. That is probably sort of
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  Speaker 1: misaligned with the market right now. Sasada Moody, you've been
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  Speaker 1: covering these conferences for so long. First word healthcare reporter
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  Speaker 1: for Bloomberg on the latest news of the UBS Healthcare
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