Allergan Inc. Quietly Leases A 90,000 Square Feet Space In Texas

Allergan Quietly Leases 90,000 Square Feet In Texas

October 1, 2014

By Krystle Vermes, BioSpace.com Breaking News Staff

California-based biopharmaceutical company Allergan Inc. has reportedly leased a 90,000 square-foot facility in North Austin, Texas but has not said why or what it plans to use the space for in the future, according to local realtors. The news had biotech watchers speculating whether the company, which is in the middle of a hostile takeover battle and a separate possible merger, could be expanding operations.

Real estate broker Mark Emerick, who works for CBRE Group, confirmed the lease. He handled the deal with his partner, John Barksdale. The biopharmaceutical company’s lease is in a 293,000 square-foot building that has been vacant, according to the Austin Business Journal. The remainder of the vacant building is open to other potential tenants.

Allergan, which is known for its products including Botox, is in the midst of an attempted takeover by Valeant Pharmaceuticals International, Inc. .

Takeover Resistance
On Sept. 29, Allergan released a statement reiterating its stance against Valeant Pharmaceuticals’ move to acquire the company. Its board of directors believe that they can provide “greater value to Allergan’s stockholders” compared to any deal secured by Valeant Pharmaceuticals.

In its news release, Allergan focused on its recent growth trajectory, which showed its increase in sales in the second quarter of 2014, as well as its plan to reduce costs by $475 million annually.

“There has recently been significant and potentially distracting market speculation regarding Allergan, so, as the Company's Board of Directors, we think it is important to reiterate our unanimous perspective,” the directors stated. “Our conclusion that Valeant's offer is grossly inadequate and substantially undervalues Allergan remains unchanged. We continue to believe strongly that Valeant's offer does not appropriately reflect the underlying value of Allergan's assets, operations and prospects, including Allergan's industry-leading franchises of global scale and its projected growth opportunities.”

Allergan plans to hold a special meeting of stockholders on Dec. 18 with activist hedge fund Pershing Square Capital Management and Valeant Pharmaceuticals. The company is expected to continue to plead its case against an acquisition.

“As a Board, we have a longstanding track record of consistently acting in the best interests of Allergan's stockholders by delivering superior performance as prudent stewards of capital,” the board members said. “Thus, while we will not comment on market rumors or speculation, we remain focused on our shared commitment to enhancing stockholder value.”

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