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