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Real-Time news about Warner Chilcott (London Stock Exchange): 0 recent articles
|silverfern: Pdm: disingenuous. THe p/e stands on the eps and share price; a prospective p/e can be worked out from current trading patterns and Board reports. Are you saying they misreported their profit figures and issued share numbers?|
|matthu: from http://www.telegraph.co.uk/money
Venture firms bid for renamed Galen
By Rosie Murray-West and James Moore (Filed: 21/09/2004)
Warner Chilcott, the recently renamed Galen Holdings, said yesterday it had received a bid approach from a consortium of venture capitalists believed to be led by Goldman Sachs Capital Partners, pushing the shares up 97 to 745p.
John King, the chairman of the niche pharmaceutical business, said the company was considering an indicative offer of 800p a share, or almost £1.5 billion.
He did not name potential suitors, but it is understood that the consortium also includes The Blackstone Group and Texas Pacific. Goldman Sachs is believed to be advising the consortium.
Warner Chilcott is focused in North America and on products for women. Its shares tumbled recently after worries over the safety of hormone replacement therapy and patent expiries. They reached 874p early this year, prompting analysts to suggest the board might reject an approach at this level.
Shawn Manning, at Dresdner Kleinwort Wasserstein, said: "We believe a potential acquirer could pay anything upwards of 800p a share.
"We believe the bid will be given serious consideration, particularly given the stock's recent poor performance. In addition, high counter-bids are possible from a US branded generics player already well-established in female health."
Roger Boissoneault, the company's chief executive, is not involved in the deliberation over the bid approach. It is understood that he was not involved with the venture capitalists, although he might be at a later stage, so the board had considered it prudent to exclude him from discussions.
Last year, the company received another takeover offer, believed to be from Barr Laboratories, which makes generic drugs. The indicative offer was at the same level as the current offer, but fell through after the news leaked out.
US groups make £1.5bn bid for Warner Chilcott
By Stephen Foley 21 September 2004
Warner Chilcott, the Northern Ireland drug company which recently changed its name from Galen, is negotiating an 800p-a-share takeover by a consortium of US private equity groups.
The company's shares jumped 15 per cent to 747p after it admitted it had received an all-cash approach which would value the women's healthcare specialist at £1.5bn.
The board is yet to meet to discuss the offer but Roger Boissonneault, the chief executive, will step back from that discussion. He is likely to be asked to stay on to run Warner Chilcott in private hands.
It is possible that John King, the executive chairman who stands to net £118m for his 8 per cent stake, and Geoffrey Elliott, the finance director, who holds 3 per cent, would continue as non-executives.
The consortium of three private equity houses includes Blackstone, which was recently runner-up in the bidding war for Odeon cinemas and is also attempting to build a large private nursing homes business in the UK. The identities of the other two members remained unclear last night.
Warner Chilcott's products, built up through a string of acquisitions in recent years, include hormone replacement therapies, oral contraceptives and acne treatments.
Warner Chilcott was forced into an announcement after details of the talks leaked into the market and drove up the share price last week. It is the second time in the past year the company has attracted bid attention, receiving an indicative offer from Barr Laboratories, another specialist in oral contraceptives, which sent its shares up to 750p at one point.
Some analysts were speculating yesterday that Barr and others would want to look again at the company now it is "in play" as a takeover target. Shawn Manning at Dresdner Kleinwort Wasserstein said: "Counter-bids at a higher price are possible from a US branded generics player already well established in female health, such as Teva, Mylan, Barr or Watson."
The closing share price of 747p reflected scepticism over a bid war and Warner Chilcott's own warning that the bid is subject to conditions, and may finally be set at a lower price than 800p.
It is believed the Blackstone consortium is hoping to engineer a financial restructuring at Warner Chilcott and float it quickly on the US stock market, where pharmaceuticals companies are typically valued more highly than by UK investors. The company's products generate cash but their prospects for significant sales growth have been fiercely debated in the City.
Warner Chilcott considered moving its own listing to the US earlier this year in the hope of enjoying an improved valuation, but ruled out the idea because of likely resistance from its shareholders.
Galen was founded in 1968 as a contract manufacturer and research partner for other drug companies. It turned itself into a speciality pharmaceuticals company in its own right through product acquisitions and the appointment of a large US salesforce. The key moment in its transformation was the acquisition of Warner Chilcott of the US in 2000, which brought in Mr Boissonneault as chief executive.
No one was said to have been more disappointed when Barr Laboratories walked away from merger talks than Warner Chilcott'scombative executive chairman.
After 25 years with the Northern Irish drug maker, John King is widely believed to be keen to cash in his 8 per cent shareholding, which could net him £118m.
One analyst said: "He has a pad in France, a pad in Kildare and, reputedly, one of the fastest boats on the Mediterranean. Not unreasonably, he is fed up dealing with the complaints of shareholders and people like me."
Mr King has cashed in an estimated £75m from selling shares over the past few years, and is paid half of his salary by Warner Chilcott's subsidiary in Bermuda.
US consortium offers £1.5bn for Warner Chilcott
Heather Tomlinson Tuesday September 21, 2004 The Guardian
Women's healthcare business Warner Chilcott has been approached with a £1.5bn cash offer by a consortium of American private equity companies, believed to include the Blackstone Group.
The bid could bring executive chairman John King a £116m windfall and finance director Geoffrey Elliot £43m if it is successful, because both hold substantial stakes in the business after 36 years at the company between them.
The bid approach was made in the past few days. The offer of 800p a share comes after interest from the American generic drugs group Barr Laboratories last year.
The approach was made by several US private equity groups which are understood to be advised by Goldman Sachs.
The Warner Chilcott board is being advised by Hoare Govett. Chief executive Roger Boissonneault is not involved in the discussions. He has not been approached by the bidding consortium yet, but the board has excluded him from the talks because he is likely to be approached by the buyers.
Warner Chilcott, originally called Galen Holdings, has changed radically over the past few years. The original businesses have been sold to former chairman Dr Allen McClay, who has sold his stake in the company. It bought US company Warner Chilcott in 2000 and its brands are almost entirely the products of that acquisition.
The Northern Ireland firm's shares rose 15% to 747p yesterday, short of the potential offer, because the City was sceptical that a deal would go through. One industry expert said Warner Chilcott faced fears about litigation, which could deter potential bidders. It makes contraceptive pills and hormone replacement therapy, both of which are subject to health scares.
The company's board will meet shortly to discuss its response to the bid approach. "The board can confirm that they have received an approach from a consortium of private equity houses which may or may not lead to an offer, at an indicative cash price of 800p per share, being made for the entire issued share capital of Warner Chilcott," a company statement said.
Although the bid is well above the previous market price for the firm, some analysts think it is undervalued. "We maintain our belief that Warner Chilcott is worth 1,000p per share," said research from investment bank Dresdner Kleinwort Wasserstein yesterday. "However, we believe the bid will be given serious consideration, particularly given the stock's recent poor performance."
It touted drugs firms that are already in female healthcare as potential counter-bidders, including Teva, Mylan and Barr.|
|nurdin: Got a few of these...looks like share price recovery is underway.£7 short term looks on the cards|
|matthu: from Times-Online
A VICTORY in the American courts late on Friday lifted Warner Chilcott shares yesterday as traders showed relief over the drugmaker's successful defence of a key patent.
Warner Chilcott, formerly known as Galen Holdings, saw off a challenge by Teva Pharmaceuticals, the generic drugs group, to its Sarafem treatment for premenstrual dysphoric disorder, a severe form of premenstrual syndrome. Warner Chilcott shares rose 29p to 629p as the resolution of the case reduced uncertainty over sales forecasts for the drug. Dresdner Kleinwort Wasserstein said that the ruling, which will bar Teva from launching its generic product until May 2008, should restore investor confidence and it reiterated its "buy" stance.
However, Dr Jonathan Senior, an analyst for Evolution Beeson Gregory, said that any near-term upside in the share price would be small. He said the result was a hollow victory because sales and prescriptions of the product had disappointed, with current sales falling about 30 per cent short of annual targets.
The wider market closed down, with the FTSE 250 off 5.8 points at 6,017.7.|
|silverfern: We get the odd product rumour everynow and then - that's the natural (almost literally) consequence of health products. I hope this is the bottom and if they can develop a cream to help us when their share price slides I will buy some.|
|silverfern: If I get a postive reply from Warner I will buy more but the problem of the small investor is of believing the company is sound and not resolving that belief to the reality share price- everything I know says this is cheap now, but what has prompted everyone else to sell? As I wrote WC earlier, it surely cannot be the case that fund holders sell stock just because the name of it has changed - or are they that dim?|
|matthu: I look forward to their reply. Meanwhile, WCRX have been tipped by Goodbody Stockbrokers:
Goodbody Stockbrokers is among the growing list of fans behind (Elan). Recently tipped to hit $45 Goodbody's Ian Hunter is a bit more phlegmatic about the stock, though positive it will go above $31.
Mr Hunter says that the group is beginning to return to prosperity having eliminated the high financial risks that caused its share price to plunge in 2002.
... In his assessment of the other publicly-quoted pharmaceutical stocks Mr Hunter tips Warner Chilcott as the other share buy.|
|whitebicycle: Mine was 380p, and at the time I didn't care what the dollar was doing. At the moment I think the management couldn't give a stuff what the likes of a small UK investor thinks, they are besotted with a NAS listing. I'm out fot the moment but would appreciate a bit more visibility for the grass roots rather than a statement about a transfer of power and a listing on Nasdaq. This is more about increasing the value of director share options than share price.
I'me not convinced at the moment and would want to see some policy statement issued as to the future direction of the company and whether it intends to delist from the LSE.|
|silverfern: What is goign on with the share price? UNless I have missed something the price does not reflect performance - so what am I missing?|
Warner Chilcott share price data is direct from the London Stock Exchange