Allergan today said its board of directors has unanimously rejected the April 22 unsolicited proposal by Valeant Pharmaceuticals International. After a comprehensive review, conducted in consultation with its financial and legal advisors, the Allergan board concluded the proposal substantially undervalues Allergan, creates significant risks and uncertainties for the stockholders of Allergan and is not in the best interests of the company and its stockholders.

The company also said, given the strength in its business, Allergan expects to increase earnings per share by 20% to 25% and continue to generate double-digit revenue growth in 2015. Additionally, Allergan expects to produce double-digit sales growth and produce earnings per share compounded annual growth of 20% over the next five years.

Allergan said this is achievable as a consequence of strong business momentum driven by a wide array of recent approvals and anticipated near-term approvals, as well as an expectation that it is in a position to produce meaningful additional leverage and scale across both the S,G&A and R&D categories without negatively impacting its commitment to deliver the highest quality outcomes to customers and their patients.

"After careful review and consideration, our board of directors has unanimously determined that Valeant's unsolicited proposal substantially undervalues Allergan and does not reflect the value of the company's leading market positions, sales and marketing foundation, industry-leading research and development efforts, as well as future revenue and earnings growth," said David E.I. Pyott, Allergan's chairman of the board and chief executive officer. "Allergan has a long history of producing consistent growth and delivering solid results through a combination of innovation, execution and discipline. We are confident in our ability to extend our track record, enthusiastic about the opportunities before us, and believe Allergan is well positioned to deliver compelling value to our stockholders. Furthermore, the board has determined that Valeant's proposal creates significant risks and uncertainties for Allergan's stockholders and believes that the Valeant business model is not sustainable."