All Kinds of Allergan Angles; Goodwill Fits Bill

Here’s one perspective on Allergan as it attempts to fend off a hostile $47 billion bid by Valeant Pharmaceuticals: The drug maker could be lost to its hometown despite a laundry list of things that both have done right when it comes to fostering the company’s growth since it moved from L.A. to Irvine in the early 1970s. OC in general and Irvine in particular has provided the quality of life—good schools, plenty of parks, safe streets, cultural accents, etc.—needed to draw the sort of talent that boosts the fortunes of companies such as Allergan. The company has done its part by combining a commitment to R&D with excellence in marketing and management to grow into the biggest publicly-traded outfit based here … Valeant talks a lot about cutting R&D and other costs at Allergan, but its takeover looks to be based primarily on the chance to exploit a tax disadvantage that Allergan and other U.S. companies face—a matter that is roiling the pharmaceuticals sector right now. That makes it a good time to consider all the public and private investment that’s been a factor in Allergan’s growth here—and to consider how quickly it could be lost to the simple lure of a lower tax rate. Fewer and fewer U.S. industries require any certain location—this isn’t the days of steel mills that need to be situated with supplies of coal and iron ore in mind. A lot of the companies that make up OC’s diverse and vibrant economy could move but stay here because of the quality of life available for talented individuals who cast their lot here. A structural tax disadvantage holds the potential to trump all of the local benefits at any time—and that’s something that begs some new thinking … Milan Panic, whose ICN Pharmaceuticals was a longtime corporate citizen in OC and became the basis for what is now Valeant, offered his perspective on Allergan in a story in the Register last week. He called Valeant CEO Michael Pearson a “modern financial wizard” and lauded the roll-up strategy he’s pursued. Panic remains a Valeant shareholder and “consultant-for-life” … Chalk one up for Allergan: Analyst David Maris, who has been covering the company for years on behalf of BMO Capital Markets and prior employers, stood out from the crowd last week when he said there is a better than 50/50 chance that Allergan will remain a standalone company … Check page 1 for yet another perspective on Allergan, this one from our Rick Reiff, who drew on his Pulitzer Prize-winning experience covering a famed takeover battle of the 1980s for a compare-and-contrast piece that’s full of flavor … Reiff remains on the masthead here, but he’s making a change on his other gig, going from lone host of SoCal Insider on PBS SoCal to co-host of Studio SoCal with Emmy-winning L.A.-based journalist and KTLA staffer Elizabeth Espinosa … Goodwill of Orange County lived up to its name when it put a roster of local companies to work on the “Smile Box” donation bins that were unveiled last week. Donors can get receipts with a scan of their phones, and the bins have sensors that alert Goodwill when they have reached capacity. Goodwill VP/Marketing Joe Burke came up with the original concept, while Westminster industrial design studio Form, Feel & Function refined the design and Precision Metal in Placentia manufactured the bins.