Allergan Said to Be Exploring Breaking Up Into 2 Businesses
2015-07-24 22:23:11.725 GMT
By Jeffrey McCracken, Ruth David and Ed Hammond
(Bloomberg) -- Allergan Plc, the $121 billion
pharmaceutical company created through a merger with Actavis
Plc, is exploring a breakup of the company, people with
knowledge of the matter said.
Allergan is leaning toward keeping the branded-drugs
business and spinning off or selling parts or all of the
generics business, said the people, who asked not to be
identified because the information is private. The maker of the
blockbuster wrinkle-treatment Botox is working with advisers on
a possible plan, the people said.
The generics drug and distribution businesses make up about
a third of the company’s total revenue, and had sales of $8.43
billion last year. That’s more than Mylan NV, which has a market
value of $32.3 billion.
The discussions are ongoing and there is no certainty
Allergan will decide to break up the company. It’s unclear if
Allergan has identified a potential buyer for the generics part
of its business.
A spokesman for Allergan declined to comment. The company
is based in Dublin, with operating headquarters in Parsippany,
New Jersey.
Actavis Plc agreed to buy Allergan Inc. for $66 billion in
November 2014, after spending months locked in bitter conflict
with Valeant Pharmaceuticals International Inc., a rival
drugmaker that had started a hostile takeover effort that year.
The deal was completed in March.
Last month, Actavis rebranded the combined company
Allergan. The combination created a health-care giant, with
projected annual sales of more than $20 billion this year.
Actavis, which already had brand-name drugs such as
enlarged-prostrate treatment Rapaflo, acquired Allergan to
bolster the business and further reduce its dependence on its
generic division.
For Related News and Information:
Worried About Wrinkles, Guys? Allergan Bets You’ll Want ‘Brotox’
Allergan to Buy Kythera Biopharmaceuticals for $2.1 Billion
Top Stories:TOP<GO>
--With assistance from Drew Armstrong and Cynthia Koons in New
York.
To contact the reporters on this story:
Jeffrey McCracken in New York at +1-212-617-8517 or
jmccracken3@bloomberg.net;
Ruth David in London at +44-20-3525-8095 or
rdavid9@bloomberg.net;
Ed Hammond in New York at +1-212-617-1963 or
ehammond12@bloomberg.net
To contact the editors responsible for this story:
Aaron Kirchfeld at +44-20-3525-8830 or
akirchfeld@bloomberg.net
Elizabeth Wollman, Crayton Harrison
2015-07-24 22:23:11.725 GMT
By Jeffrey McCracken, Ruth David and Ed Hammond
(Bloomberg) -- Allergan Plc, the $121 billion
pharmaceutical company created through a merger with Actavis
Plc, is exploring a breakup of the company, people with
knowledge of the matter said.
Allergan is leaning toward keeping the branded-drugs
business and spinning off or selling parts or all of the
generics business, said the people, who asked not to be
identified because the information is private. The maker of the
blockbuster wrinkle-treatment Botox is working with advisers on
a possible plan, the people said.
The generics drug and distribution businesses make up about
a third of the company’s total revenue, and had sales of $8.43
billion last year. That’s more than Mylan NV, which has a market
value of $32.3 billion.
The discussions are ongoing and there is no certainty
Allergan will decide to break up the company. It’s unclear if
Allergan has identified a potential buyer for the generics part
of its business.
A spokesman for Allergan declined to comment. The company
is based in Dublin, with operating headquarters in Parsippany,
New Jersey.
Actavis Plc agreed to buy Allergan Inc. for $66 billion in
November 2014, after spending months locked in bitter conflict
with Valeant Pharmaceuticals International Inc., a rival
drugmaker that had started a hostile takeover effort that year.
The deal was completed in March.
Last month, Actavis rebranded the combined company
Allergan. The combination created a health-care giant, with
projected annual sales of more than $20 billion this year.
Actavis, which already had brand-name drugs such as
enlarged-prostrate treatment Rapaflo, acquired Allergan to
bolster the business and further reduce its dependence on its
generic division.
For Related News and Information:
Worried About Wrinkles, Guys? Allergan Bets You’ll Want ‘Brotox’
Allergan to Buy Kythera Biopharmaceuticals for $2.1 Billion
Top Stories:TOP<GO>
--With assistance from Drew Armstrong and Cynthia Koons in New
York.
To contact the reporters on this story:
Jeffrey McCracken in New York at +1-212-617-8517 or
jmccracken3@bloomberg.net;
Ruth David in London at +44-20-3525-8095 or
rdavid9@bloomberg.net;
Ed Hammond in New York at +1-212-617-1963 or
ehammond12@bloomberg.net
To contact the editors responsible for this story:
Aaron Kirchfeld at +44-20-3525-8830 or
akirchfeld@bloomberg.net
Elizabeth Wollman, Crayton Harrison