WEBVTT - Bloomberg's Damouni on Valeant, Allergan, Medivation (Audio)

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<v Speaker 1>Live in the first t breaking news Descombo Maloney, Katherine,

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<v Speaker 1>that's a Bloomberg business flash. You're listening to taking stock

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<v Speaker 1>with Kathleen Hayes and Pim Fox on Bloomberg Radio. This

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<v Speaker 1>Shares of Valley and Pharmaceuticals are down more than four

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<v Speaker 1>percent today, even as the company's chief executive, Joe Papa,

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<v Speaker 1>speaks at the UBS, a global healthcare conference in New York.

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<v Speaker 1>This is taking stock on Bloomberg. I'm Pim Fox, my

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<v Speaker 1>co host Kathleen Hayes, and we are live in Tucson,

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<v Speaker 1>Arizona for b n Y Melon Asset Servicings twenties sixteen

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<v Speaker 1>client Conference. Sacha Damuni joins us now Bloomberg Pharmaceuticals, health

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<v Speaker 1>Care and First Word Healthcare reporter for Bloomberg, joining us

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<v Speaker 1>from Bloomberg World Headquarters in New York. Sasha, thanks very

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<v Speaker 1>much for spending time with us. You are spending time

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<v Speaker 1>earlier at the UBS Healthcare Conference. What what did Valiant

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<v Speaker 1>Pharmaceuticals not say that investors were looking for? It was

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<v Speaker 1>a good morning at the UBS Healthcare conference. Valiant was

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<v Speaker 1>their Allergan was there in metivation. So these are some

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<v Speaker 1>really topical companies that everyone's looking at in terms of investors.

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<v Speaker 1>So what's happening with Valiant is we want to really

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<v Speaker 1>get a feel of what Joe Papa, he's been at

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<v Speaker 1>his tenures as the CEO for a few weeks now

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<v Speaker 1>and he sort of had a neutral stance on what's

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<v Speaker 1>going on. So he sort of said, look, we have

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<v Speaker 1>a very good pipeline of new drugs. But he did

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<v Speaker 1>say they haven't been fully appreciated. But then his second

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<v Speaker 1>his second point was, look, we're working through the quote

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<v Speaker 1>speed bumps with that with with Walgreens. So if you

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<v Speaker 1>kind of look back Mike Pearson, the former CEO, his

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<v Speaker 1>predecessor UM, he signed a pact with Walgreens for their dermatology,

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<v Speaker 1>for the dermatology assets, and we're starting to see sales

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<v Speaker 1>come in and UM and they they're just not looking

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<v Speaker 1>good in terms of the prescriptions that are coming in.

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<v Speaker 1>That the data is not reading right investors. So the

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<v Speaker 1>real question is how is this major pact doing. What's

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<v Speaker 1>it doing for the company. And he's just trying to

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<v Speaker 1>get around it. So I think that we need to

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<v Speaker 1>figure out what these speed bumps are. We need more

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<v Speaker 1>color there. He also talked a bit or about his

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<v Speaker 1>irrital boll syndrome product Za facts in UM. They said

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<v Speaker 1>that's that's UM that that has strong patent protection and

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<v Speaker 1>that's been a concern. And then the other thing UM

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<v Speaker 1>obviously Valiant vault a company last year Spruce Spruce Pharma

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<v Speaker 1>for Addie, which is their libido pill. They spent a

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<v Speaker 1>billion dollars on this company and prescriptions have been lackluster.

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<v Speaker 1>So he also said they're going to relaunch Addie. So

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<v Speaker 1>let's watch the space on the Valiant commentary. Well, so

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<v Speaker 1>Sasha just just sum it up for us in this sense.

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<v Speaker 1>He focused on speed bumps with Walgreens and other things.

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<v Speaker 1>But our investors satisfied that since Mike Pearson left, there

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<v Speaker 1>was all the turmoil over accounting price increases, there was

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<v Speaker 1>a now separate relationship with a controversial mail order pharmacy.

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<v Speaker 1>Did they need to hear more about that or are

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<v Speaker 1>they just willing to put that behind and look what's

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<v Speaker 1>on the table now looking forward. No, I don't think

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<v Speaker 1>they're ready to put anything behind in the In the

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<v Speaker 1>case of Valiant, I think that a lot of investors

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<v Speaker 1>were actually pretty disgruntled their questions with the company regarding

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<v Speaker 1>the way Joe Papa left Parago. Obviously, Parago had um

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<v Speaker 1>m N a UM offer on the table last year

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<v Speaker 1>by Milan Uh the CEO walked away said look, look,

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<v Speaker 1>I want to grow the company. I'm focused on on

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<v Speaker 1>on on, you know, sort of focusing on what we're

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<v Speaker 1>doing internally, and we're not going to sell the company.

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<v Speaker 1>So investors are upset because shares kept declining after that

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<v Speaker 1>he really didn't create shareholder value. So I think they're

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<v Speaker 1>concerned that he walked away. He seemed disloyal to Parago.

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<v Speaker 1>He brought down the shares in the last twelve months. Obviously,

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<v Speaker 1>during his tenure there, the shares did increase, they did

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<v Speaker 1>go up, but um, but in the last twelve months

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<v Speaker 1>it's been pretty lackluster, and they had hoped that he

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<v Speaker 1>could have selled to Myland. It's Sasha Allergan shares it

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<v Speaker 1>down a little bit more than one and a half

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<v Speaker 1>percent right now. Tell me what Brett Saunders, the chief

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<v Speaker 1>executive Allergam, was talking about when I had to do

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<v Speaker 1>with that generic business that's being sold to Tava Pharmaceuticals

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<v Speaker 1>in Israel. So that was really the topic of the

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<v Speaker 1>day and people were asking, what's going on with this

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<v Speaker 1>forty billion dollar deal to sell its generics business to Tava.

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<v Speaker 1>And it sounds pretty good, actually, it says um Brent

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<v Speaker 1>Saunders said that the sale could close within weeks, and

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<v Speaker 1>people have been concerned about antitrust issues. It's a huge deal,

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<v Speaker 1>is going to make Tava a massive powerhouse and they're

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<v Speaker 1>going to have to make divestitures. But from what it

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<v Speaker 1>sounded like the body language was positive and the wording

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<v Speaker 1>was positive. TAVA and the government have been working together

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<v Speaker 1>on this constructively. So even though shares are down, obviously

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<v Speaker 1>people were asking about M and A. He said they're

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<v Speaker 1>not going to make large deals right now until there's

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<v Speaker 1>more clarity on this. So he did say more deals

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<v Speaker 1>are to come, more deals in the billions of dollar range.

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<v Speaker 1>So still still sounds like an exciting year for allghan

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<v Speaker 1>quick comment on metivation, Sasha Duty, So metivation, the buzz

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<v Speaker 1>around metivation based clear. The CEO David Hung has a

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<v Speaker 1>very high threshold for an M and A price, and

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<v Speaker 1>it sounds as if it's going to be difficult for

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<v Speaker 1>him to budge on coming down on that price. He's

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<v Speaker 1>a founder, He's this is his darling, so he thinks

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<v Speaker 1>that should go at evaluation. That is probably sort of

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<v Speaker 1>misaligned with the market right now. Sasada Moody, you've been

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<v Speaker 1>covering these conferences for so long. First word healthcare reporter

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<v Speaker 1>for Bloomberg on the latest news of the UBS Healthcare

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<v Speaker 1>conference in New York city of Kathe Hayes. Along with

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<v Speaker 1>Pimco Box, we are at a conference in near Tucson, Arizona.

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<v Speaker 1>It's invested sixty the power of big ideas b n

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<v Speaker 1>Y balanced client conference. Up next to look at people

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<v Speaker 1>leading hedge funds. This is Blooper Radio Bloomberg. Taking stock

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