Quebec-based Valeant Pharmaceuticals has increased its takeover bid for Allergan from US$50 to nearly US$60 billion.

In a letter to Allergan, Valeant said that its offer could now be “at least US$200 a share.” However, the Quebec company has provided no further details, opening the door to speculation.

Valeant’s previous offer was US$82 plus a 0.83 of a Valeant share for each Allergan share. Many analysts think that the new offer is simply the projected higher valuation of Valeant’s own shares, rather than a true increase. Allergan executives were quick to emphasize this in its stinging reply.

For further information (in French only): http://affaires.lapresse.ca/resultats-financiers/201410/20/01-4810785-valeant-disposee-a-modifier-son-offre-sur-allergan.php

Despite a good quarter for the company in general (sales of US$18.5 billion, up by 5.1% over last year), Johnson & Johnson reported a drop in eye care product sales in the third quarter of 2014.

Johnson & Johnson gave competitive pricing as a reason for the drop in eye care product sales of 5.9%, compared with 2013. These sales were CA$786 million in the third quarter of 2014. The drop was dramatic in the United States (-12.5%) and less harsh in other markets (-2.3%).

For further information: http://www.jnj.com/news/all/Johnson-and-Johnson-Reports-2014-Third-Quarter-Results

Quebec-based Valeant Pharmaceuticals, owner of Bausch + Lomb, among others, recorded its second best quarterly results since it was founded in 1960.

The company reported C$2.36 billion in revenue for its third quarter in 2014, compared with C$1.69 billion for the same period in 2013. But profits were even more dramatic: net income was C$309.5 million in the third quarter of 2014, compared with a loss of C$1.09 billion a year earlier.

Valeant’s revenues in contact lenses rose by 82% in a year. In total, Bausch + Lomb organic growth was 12%.

Valeant directly alluded to Allergan’s attacks, saying that these outstanding results illustrate the strength of its business model. Since Valeant first started trying to acquire Allergan, the latter has continually publicly criticized Valeant’s business model. Prior to Valeant releasing its results, Allergan even posted online a 30-page document, describing the points on which investors should evaluate the pharmaceutical company’s performance. The document has since been withdrawn.

Valeant CEO Michael Pearson stated in a conference call that they “have shown through performance that all the allegations made by Allergan are just wrong,” according to La Presse. In the same breath, he said he was ready to sit down with Allergan executives and increase the hostile bid offer, presently evaluated at about C$50 billion.

Sources: http://ir.valeant.com/investor-relations/news-releases/news-release-details/2014/Valeant-Pharmaceuticals-Reports-Third-Quarter-2014-Financial-Results/default.aspx

http://affaires.lapresse.ca/resultats-financiers/201410/20/01-4810785-valeant-disposee-a-modifier-son-offre-sur-allergan.php

http://www.visionmonday.com/business/financial/article/valeant-pharmaceuticals-reports-revenue-increase-for-q3-1/

 

EyeCheck, a start-up founded by University of Waterloo students, made the final list of 20 entries for the James Dyson Award.

The James Dyson Award (named after the inventor of the Dyson bagless vacuum cleaner) is a design engineering award. The winning student or team receives $46,000, and their university receives $18,000.

Developed by Ashutosh Syal and Daxal Desai, two University of Waterloo systems design engineering grads, EyeCheck aims to bring inexpensive eye care to developing countries using a smartphone app developed for BlackBerry 10.

The app takes a picture of the person’s face, tells you whether the person is nearsighted or farsighted, and detects opacity in their eyes. You can then take a picture of the eye itself to provide a prescription, which must nonetheless be confirmed by an optometrist. This device reduces a 20-minute exam to about three minutes.

For now, the team is focussed on developing prototypes. Its members intend to conduct trials in “eye care camps” held in developing countries. “It is one thing to work with a charity here in Canada sitting over a cup of coffee, and something totally different talking to a volunteer on the ground in India,” said Ashutosh Syal.

Source: http://www.insidehalton.com/news-story/4919630-dyson-award-has-eyes-for-waterloo-startup/