Pyott, in an interview with the Journal, said he was always looking at potential targets and pointed to an estimated $14 billion in future free-cash flow and Allergan's ability to easily raise large amounts of debt as giving him the firepower for a deal.

Pyott said Allergan was considering some U.S. companies and some that are domiciled outside the U.S., which could set the stage for a potential tax-cutting deal.

Pyott wasn't specific about potential deal partners or whether any conversations were under way. The CEO also said he has talked with shareholders about a potential sizable share repurchase or a special dividend, the Journal reported.