Allergan: A High Quality Compounder

The recent $70.5 billion acquisition of Allergan by the Irish pharmaceutical company, Actavis plc,  turned the final page on Polen Capital’s six-year investment in Allergan – this was a profitable period that yielded a robust return of approximately six-fold for Polen clients.

In this paper, we examine some of the unique factors that drove our decision to invest initially, and to maintain our position even during a particularly difficult time for the pharmaceutical firm. We will also lay out some of the attributes that made Allergan an attractive acquisition target, and we explore some of its hidden strengths that enabled the company to successfully defend itself during the acquisition process, push the buying price of the company to unexpected levels, and extract full and fair value for its shareholders.

Read the full article here.