Allergan is building an acquisition machine the likes of which institutional investors and hedge funds may not yet comprehend. The company and its bold ambitions to become the dominant category leader were benchmarked in a recent secret meeting that revealed how a prototype for a next-generation acquisition model is being built. Once the firm achieves category dominance they achieve pricing power while having greater flexibility to reduce operating expenses, a corporate tactic that hedge fund managers tend to applaud, as is the case in Micron Technologies and other category leaders. In the wake of Allergan’s recent $2.1 billion acquisition of Kythera…
Secret Allergan Meeting Points To Aggressive Takeover Strategy
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.