Valeant, which has paired with activist investor William Ackman's Pershing Square Capital Management LP, first launched its bid for Allergan in April and has been rebuffed repeatedly.
In addition to the job cuts, Allergan reported on Monday a stronger-than-expected second-quarter profit and reaffirmed its long-term goals, while also boosting its earnings outlook for the year.
Valeant said Allergan falsely claimed in a regulatory filing last week that pharmaceutical sales for its eye-care unit Bausch & Lomb were stagnant or declining, comments it said were intended to mislead investors and manipulate the market for Valeant's stock.
Rather, the eye-care company's global prescription pharmaceutical business grew about 6% in the second quarter, while the U.S. prescription pharmaceutical business grew 17%, the company said. Allergan said it stands by its comments.
"With our continued success with Bausch & Lomb, we believe that the Bausch & Lomb transaction is a perfect blueprint for our proposed merger with Allergan," Valeant Chairman and Chief Executive J. Michael Pearson said in Monday's statement.
Pershing Square built a position of about 9.7% of Allergan and is attempting with Valeant to call a special meeting of Allergan shareholders, where it would seek to remove six of Allergan's nine directors and open the door for the cash-and-stock offer to proceed.
Valeant, which has promised that it would cut the combined company's R&D spending by 69%, spends little on science, instead focusing on buying established drugs and treatments and selling them through its international network.
But Allergan has questioned the stability of Valeant's business model and previously said Valeant's cost-cutting would threaten future sales growth as well as research and development, putting the company at risk.
As for Monday's job cuts, which affect about 1,500 employees, along with an additional 250 vacant positions, Allergan noted about 94% of all customer-facing personnel would be unaffected by the restructuring and all pharmaceutical research and development programs in the clinic would continue.
Allergan said it expects its strategic plan would result in more than 20% per-share earnings growth over the next six years and detailed consensus beating estimates for the next three years.
It boosted its profit forecast for the current year and estimated non-recurring pre-tax charges of $375 million and $425 million in connection with the restructuring. Its second-quarter profit and net product sales also grew more than expected. http://tinyurl.com/pxqqx5o