Salix Pharmaceuticals was considered as a potential buy by Allergan to ward off a hostile takeover by Valeant Pharmaceuticals and activist investor Bill Ackman. Jim Cramer pointed out on CNBC that it is fortunate for Allergan that they didn’t make this deal. Salix would have been a Trojan Horse of problems. It missed on earnings, the CFO resigned and now it is being investigated for mismanagement. “When the committee investigates you, something is very wrong.” Allergan’s stock has been performing well amid the takeover talk, but it would have been worse for Allergan if it had bought Salix to get out of the controversy.
