Botox maker Allergan lifted its profit outlook Thursday as it tries to stave off a takeover attempt from a Canadian rival.
The Irvine-based drug maker said it expects to earn between $1.76 and $1.78 a share during the third quarter, up from its previous guidance of $1.44 and $1.47. The company said shareholders can expect higher profit for all of this year, compared with 2013, and that earnings will keep rising over the next two years.
The forecasts come as Canada’s Valeant Pharmaceuticals International Inc. prepares to ask Allergan shareholders to replace a majority of Allergan's board with members who would support a sale. The meeting is scheduled for December.
“Today’s announced expectations ... further demonstrate that there is a vast value gap between Valeant’s offer and the intrinsic value of Allergan,” David E.I. Pyott, Allergan's chief exectuive, said in a statement.
The company also said it expects sales for 2014 to increase 14% to 15% compared with a year earlier.
For months, Allergan has fought off the overtures of Valeant and its partner, New York hedge fund Pershing Square Capital Management. The company has rejected each offer, including the latest of about $53 billion in cash and stock.
Valeant plans to raise that offer before the December meeting, Bloomberg News reported, citing unnamed sources.
Allergan shares rose 22 cents, or 0.12%, to $190.72 in late morning trading on Wall Street.