Oil is on its way in about 90 minutes. As carl just said this morning we got news from alergan and pfizer walking away from a deal signed last year. One of the largest deals we receive in that center actually overall, in fact, and part of it done in part not just to try to fuel a growth but also to allow it to access cash overseas and bring it back to the u. S. And become a foreign taxpayer but on monday u. S. Issued regulations. This morning the u. S. Treasury at least was successful in doing just that, pfizer and allergan going their separate ways, allergan paying pfizer a 150 million fee over time theyve spent over the last few months in pursuing a deal together. Now theyre apart and going their separate ways. Were joined on set by Brent Saunders, the ceo of allergan. Thanks for being here. Thank you for having me. Its been a tumultuous couple of days. It has, yes. There was a call back in february. You were talking about the spread. You said, man, its baffling from my point of view. As far as pfizer is concerned, we think this deal will close. Were in a strong position. I dont see any obstacles. You guys were blindsided. We were. Look. We built this deal around the law. The regulations, all the notices that were put out by the treasury. And it was a highly legal contract. We follow it as theyre looking to move to a foreign domicile. For rules to be changed is a bit unameric unamerican, but thats the situation were in. Were a Great Company and so it will work out well. Do you believe the treasury specifically targeted your deal . It certainly appears that way. These rules, this threeyear lookback was designed, i think, very specifically to target this deal. I dont believe based on an initial review it impacts any other deal and virtually any other circumstance. Im sure you and your team of accountants and lawyers look at the fine print and try to figure out a way to get this done given the announcements this morning. I assume there was not. Was there any hope after seeing the fine print after we got the release from the treasury . There really wasnt. It really looked like they did a very fine job at constructing a rule here, a temporary rule to stop this deal. Obviously it was successful. Yeah. I mean three years it will be in effect for. So the threeyear lookback provision that was, of course, the key for killing the deal. What does it do, though, for allergan now because it wasnt just threeyear lookbacks. Theres always an earning prescription. How does it affect your strategy in terms of acquisitions given your size is going to be calculated very differently if you use stock in those dealing . Interestingly it has essentially no impact on allergan as a stand alone company and, in fact, arguably in a preverse way it strengths our stand alone company. So the threeyear look back is onto if they were to acquire allergan. If they were to go out and buy something else, we can use stock. We can use a lot of stock after october of this year because thats the threeyear anniversary of the deal. And as you know, we oar going to sell our generics business. We will have 40. 5 billion of proceeds pretax. And so we have a lot of flexibility. With respect to our tax status and income production, they have no Material Impact on us whatsoever. None at all. None. All right. Brent. Your stock average, 299 bucks before the story broke. Now to me it says the whole merger was illadvised. What steps can you take to bring your stock back to where it was before you ever got involved with pfizer . Look. Allergan, i think, has arguably one of the longest top profile growths in history. We have one of the strongest pipelines in our r d industry and we are one o the strongest players in each one of those. Were set up for great success. I think as the market digests, the news of this deal starts to focus back on the fundamentals of the allergan business. The excitement will come back to allergan. You have to have a lot of cash. Your stock is going to be like 89 billion, 90 billion. Who could you buy . Would you buy valiant and become the ceo of valvaleant . Take those one at a time. I cant rule on a cant you rule out valeant . Ill come close. This is how ill do it. Allergan has always been a growth pharma company. Weve always bought growth assets, and so when you look at the profile, the companies you mention, some are growth oriented, others are not. Anything that is a growth oriented business with strong fundamental businesses and a good pipeline to sustain that growth is of interest to us. Okay. 299. Now 225, 230. You say, i would not buy back stock. Why not buy back the stock because it was much cheaper than when you started the nonsense. Clearly a great opportunity to buy back stock. Unfortunately a decision of our board of directors. Well look at it. We cant do anything until we close. Which will happen the first of the year. Once that happens, everything is on the table. Youre talking about a company thats going to do 8 billion in ebitda, have no debt once you close the deal. Clearly an unleveraged balance. To jims question, i wonder, you ran bausch lomb or even salix i dont think anybodys going buy valeant. I have the best job as ceo. Potential sales, what kind of assets would you be looking for . Would it include sales that might be from valeant . We look for assets in eye care, g. I. Is another and growth oriented and high quality. Clearly bausch and loam lomb the treasury has increased their appetite. Why was there not more of a hedge in seeing treasury move like this . Yeah. We were prepared for this, right . This was a continuous plan clearly. But we were prepared for the treasury to do something extraordinary and clearly they did. And so our pivot back to an independent company is straightforward. Were ready, were excited. Our people are energized. Our business is performing. We have a great pipeline. Allowing them to become uncompetitive role boy. Was it worth taking the risk of doing this deal . Clearly this is the possibility. We were wrong. It was quite pivotal. I wasnt day dreaming for a retirement or looking for a new job. I was going with the company as was most of my Management Team. We staid engaged the entire time and were ready to go. Lets look at the political landscape. She wishes that you made less money, but trump look at it. How do we know at 299 we cant do it anymore. We need pfizer more than pfizer needs us. Yeah, i think the answer to that is when you look at ian reads statement, we werent accelerated to pfizer. We really liked their research capabilities, vaccine business and oncology business. Were going to have no issue pivoting forward here. We have no issue being a pharma strong company. Youre a double digit grower. Youre obviously your stock is depressed. When i look at the situation, i have to wonder. Are you going to cut numbers when you report . Were not. Were going have our investor call and reiterate what we said earlier, i think february is the date, and were going to continue to focus on executing or business. When we close the deal, talking about how to deploy that capital in the most decreed of way and sustain the profile of our business. To those who would say, you know what . I kind of agree with treasury because allergan slash activist really was nothing more, trying to fatten itself up for an eventual sale. Thats all the strategy has been about. Gobble gobble abogobble it up a then get gobbled up. Thats preposterous. Im smart enough b. The blue chip names in our industry were built in part by m a and in part by r d investment. Our strategy is very similar to that except we add a growth spectrum to it. Right. Also inned you have more tax breaks. And others are walled off. Thats why allergan as a stand alone company is part of it. But to think theyre not the right company is preposterous as well. Most of the big blue chip names were built that way. Allergan stans for all those things as well but has a more efficient tax structure, a strong Balance Sheet and i think a really strong skill at buying a creed of growth assets. Which sounds like what you plan on doing once you get the money in from teva. Absolutely. Do you have a list . Yes. Ive always maintained a list. And, yes, we do. I have to ask you something. Valeant had this terrific, trivgs determine toe logic business. They laid off dermatologists. Youve got botox over here. I mean have you destroy ed dest portion of the business . We continue to be strong in the industry. Have you destroyed their business . I think they have, right. Once again, no interest whatsoever. Say bill ackman called you right now, would you become ceo . I would not. I have the best ceo position in the industry. I love allergan, the industry, the future, i love our people. Theres not one temptation for me to leave. And, in fact, with pfizer, i wasnt going to leave. Is that a benefit . Having bill ackman call you constantly, is that a good thing . I actually like him. Hes a smart man. How many times day does he call . I have a lot of respect for him. Have you spoken to lew since this news. I have not. When the company says they renounce their citizenship, what do you say . Thats a missed approach. I know ive use thad word a lot when weve discussed the regulations but were a job creator. We will continue to invest our r ds. Well look for curse and treatments and we understand our social contract with the u. S. This idea, its not true. Being inverted and having the tax structure allows it to be more easily in the u. S. Than the u. S. Company. It was built by being competitive, globally competitive, and i think this administration and these types of policies hurt americas ability to compete on a global scale. We should talk about it. Not build a wall to lock it in. Do you think if pfizer had become a reality, they would have used some of it and brought it back to this country . Up questionable. I think the if the deal had gone through, the investment in the United States would have been great er under a dublinbased pfizer around lack of come pessiveness. Realize youre two completely different companies, but im curious. I think pfizer is in a strong position. I think i got to really know his Management Team as part of the preintegration. I have a tremendous respect and admiration for him and like us that is correct i had a contingency plan if this didnt go through and theyre going to go forward and execute on it. So im sure theyll be in great shape. Okay. Brent, when you were on mad money last, you said, i we believe this the america. For them to come in and try to change this in the ninth inning seems unfair. Is this america . I think thats a great point, jim. When Global Companies like us look at the world and look for certainty and rule of law. When we think of places like india and operating in places like china, we worry about the rule of lauchl do we need to start worrying than in the a greatest countku country in the states . That just seems unamerican to me. And if jack lew were sitting here, would you yell at him . No, look. We have to be constructive. We want to see this country be competitive. When you strip it all away, the most important thing that this country should focus on is reforming its tax code to make it more competitive globally and make it easier for Global Companies to invest in the United States. You speak like youre an American Company and youre not. Everything you talk about is this part of it. Youre based in new jersey. You can understand why some people certainly for political fodder might say whats going on here. Well, first, i am a political american and a patriot and i do believe in this countkucountry. Our company is a global company. Its the a greatest place to do business in. We hire in the United States, do manufacturing in the United States. So were deeply committed to committing in the u. S. By the way, we pay our u. S. Taxes in the United States. And, finally, jim mentioned the Political Campaign, but were going end one a different president come january of next year. Is it your expectation, given everything youre hearing, that health care is going to continue to be under the microchip scope and suffer as weve already seen in terms of the multiple compression from whatever may come regardless of which party takes the white house . I dont think thats likely. I think it will be under pressure during the campaign season. We have to be sure and avoid controversies from some of the players in the industry today. That being said, Health Care Reform was priority of the obama administration. I dont think it will be part of the priorities of whoever the next administration is. Brent saunders, thank you for coming down today. Thank you for having me. Brent saunders, ceo of allergen. When we come back, big win for ted cruz and Bernie Sanders last night. What that means for the race ahead. Also and they open a new arena. And take another look at the market. Down day. Three in a row. First since early february. Back in a minute. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive hey, jesse. Who are you . Im vern, the orange money retirement rabbit from voya. Orange money represents the money you put away for retirement. Over time, your money could multiply. Hello, all of you. Get organized at voya. Com. Im a Customer Relationship im roy gmanager. Ith pg e. Anderson Valley Brewing company is definitely a leader in the adoption of energy efficiency. Pg e is a strong supporter of solar energy. We focus on helping our customers understand it and be able to apply it in the best way possible. Not only is it good for the environment, its good for the businesses bottom line. These are our neighbors. These are the people that we work with. That matters to me. I have three children that are going to grow up here and i want them to be able to enjoy all the things that i was able to enjoy. Together, were building a better california. Megan is home doing yoga. Last saturday, she was shopping here. [ indistinct shouting ] bulk from boxed didnt only save megan 33, bulk from boxed saved megans saturday. [ pop, screech, doorbell rings ] boxed bulksize shopping delivered easy with no membership fees. Download the app and get 15 off your first order with code bulk. M a this morning. The Justice Department is scheduled to call later today saying its about a significant antitrust matter, houf, theres speculation that it does involve the pending deal that involves the Companies Baker hughes and. When we come back, well talk about the market which is in a bit of a tight range. Were back in just a minute. The pursuit of healthier. It begins from the second were born. Because, healthier doesnt happen all by itself. It needs to be earned every day. Using wellness to keep away illness. And believing a single life can be made better by millions of others. As a Health Services and Innovation Company optum powers modern healthcare by connecting every part of it. So while the world keeps searching for healthier were here to make healthier happen. They are. Do i look smarter . Yeah, a little. Youre making money now, are you investing . Well, ive been doing some research. Let me introduce you to our broker. How much does he charge . I dont know. Okay. Uh, do you get your fees back if youre not happy . dad laughs wow, youre laughing. Thats not the way the world works. Well, the worlds changing. Are you asking enough questions about the way your wealth is managed . Wealth management, at charles schwab. Just about time for the opening bell. The mad dash. They have consolation brands. This was the best beverage quarter of any company in america. Youre going to hear about a canadian ipo, possibly a beer division. Its corona. They have tequila. Ball last point. Theyve used all the cash flow. Up to 362 last year. Huge boost in the dividend. Stz, move over bud, move over molson. Its all about corona and modell la. This mexican beer, that have the highest quality. They dont even have the capacity to make all that is business. They have to have more capacity because it is the beer they want. Constellation can go higher. This is like the cash flow you used to see from the old anheuserbusch when it was starting to take over the world. These guys can take over the world if they want to. Doing in beverages what starbucks is doing in coffee. Twhanlt to be the biggest wine and Spirits Company in the world. A lot of companies ahead of. But this company is based on fast growing mexican beer thats faster than any other drink, faster than water. People like water. I know, i know. People like beer more. Yes, they do. They drink more beer in tough times. This corona and corona light, very strong, but what i really like about this company call is that they are able to buy pretty much anyone they want. Craft beer is big. To me it tastes like cheerio. Younger people like that craft beer. Its a little hoppy sometimes. To me its like capn crunch. Yes. Moves to something more vis k s viscuous. The other is that russia sees 45 to 50 as an acceptable ee quill libya brie yum. Every time oil goes down. I dont care what anybody does. I care about the sallys. In the meantime obviously baker hur hughes, haul halliburton, i think oil, every time it goes higher, theyre scrap producers sending it in. Now weve got to the huge users like the airplane humvees. Were stuck. Ive got to tell you. I dont think there will be. Sauddys dont like iran and they dont like us. They used to. They used to be our pals. You mentioned vhi. S p says 414 billion in canceled global m a this year. Shooeesh. Thats a lot. Yeah. Listen. Whos buying these companies . 80 break even. Remember, theres only a handful of counties that are profitable. Pipeline companies are just a dime. We follow very closely with williams commencing litigation. Its to protect stock holders rights. Were going to have more on this as this develops. Ive got to make more calls. Lets get to the opening bell and get you a look at the s p at the bottom of the screen. Big optics, celebrating its name change to gig peak. Over to vital therapies providing acute forms of treatment for liver failure. Facebook making some changes to the live product which is clearly their big priority now. This is zuckerbergs biggest priority. From what i understand from my sources is he thinks this is going to be worldwide tv. I do a lot of facebooking, we all do it now. If they could somehow cure rate the questions so you could really do like the ultimate