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Botox maker Allergan to axe 250 vacant posts

BOTOX maker Allergan said on Monday it plans to eliminate about 250 vacant positions in a restructuring that will streamline its business and allow the drugmaker to focus on its "highest value opportunities".

Allergan, which is fighting a takeover bid from Valeant Pharmaceuticals, announced the cuts the same day it also said second-quarter earnings grew 16% to $417.2m, or $1.37 per share, and revenue jumped 17% to $1.86bn.

Both earnings and revenue trumped analyst expectations, according to FactSet.

The drugmaker also raised its forecast for adjusted 2014 earnings to between $5.74 and $5.80 per share from a range of $5.64 to $5.73 that it predicted in May. Analysts expect, on average, $5.71 per share.

Allergan said its restructuring will yield annual pre-tax savings of about $475m in 2015, while costs tied to it will total between $375m and $425m.

The Canadian drugmaker Valeant Pharmaceuticals International and investment firm Pershing Square Capital Management have made several bids to buy Allergan, the latest amounting to about $53bn in cash and stock.

Allergan has said the offers "substantially undervalue" the company and create big risks for its shareholders. It also has adopted a "poison pill" measure to block a takeover.

Shares of Allergan climbed 35 cents to $167.75 Monday at the start of trading. The stock had already climbed 51% so far this year as of Friday's close, beating the 7% gain from the Standard & Poor's 500 index over the same period.
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