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Actavis to spend $66 billion on Allergan

Allergan, the maker of Botox, is being sold for $66 billion to Actavis.Associated Press/File 2002

NEW YORK — Actavis, which is buying Botox maker Allergan for $66 billion, plans to stay committed to developing new products.

Chief executive Brent Saunders said the combined company will have more than two dozen products in late-stage clinical testing, and it will work to support research.

‘‘It is the lifeblood of our company,’’ he told analysts.

Actavis and the company it outbid for Allergan, Valeant Pharmaceuticals, have grown rapidly in recent years through multibillion dollar acquisitions of other drug makers. But experts say developing new products internally is still the preferred method for revenue growth.

‘‘It’s also really risky,’’ said Erik Gordon, a professor at the University of Michigan who follows the pharmaceutical industry.


Allergan spent months fending off overtures from Valeant, in part because it thought the Canadian company would gut its research funding. It also complained Valeant’s $53 billion bid was too low. On Monday, Actavis announced an offer of about $219 in cash and stock for each Allergan share that has the support of both companies involved.

Actavis also announced Monday that it completed its offer to buy all outstanding shares of Durata Therapeutics in a deal worth $675 million.