NEW YORK (TheStreet) -- Shares of Valeant Pharmaceuticals Int'l (VRX) are down -1.27% to $129.50 after it was reported that Allergan, Inc. (AGN) rejected Valeant's unsolicited takeover proposal, saying the offer "substantially undervalues" the maker of the Botox wrinkle treatment, Bloomberg reports.
Allergan's stock is down -1.12% to $159.50
The bid valued Allergan at $45.7 billion in cash and stock when it was announced.
It creates "significant risks and uncertainties," Alllergan said as the company expects earnings per share to increase 20% to 25% next year, with double-digit revenue growth.
TheStreet Ratings team rates VALEANT PHARMACEUTICALS INTL as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate VALEANT PHARMACEUTICALS INTL (VRX) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good."
Highlights from the analysis by TheStreet Ratings Team goes as follows: