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About Allergan, Inc.

Allergan PLC is a major pharmaceutical company, developing, manufacturing, and commercializing branded medicines. Its four key product categories are medical aesthetics, eye care, central nervous system, and gastroenterology, and its top-eight best-selling products account for nearly all Allergan's revenue, led by top-seller Botox, an anti-wrinkle treatment. Customers are drug wholesalers, retailers, and distributors, including drugstore chains, hospitals, government agencies, and individual physicians. Based in Ireland for tax reasons, Allergan has commercial operations in some 100 countries but generates most of its revenue in the US where it was formerly domiciled. The company agreed to a $63 million acquisition offer from AbbVie in 2019.

Change in Company Type

Allergan agreed to be acquired by AbbVie for about $63 billion in 2019 in a cash and stock deal. The companies bet that getting even bigger than they already are individually will deliver more sources of revenue. AbbVie's Humira, a treatment for rheumatoid arthritis that's the best-selling drug in the world, is nearing the end of its patent protection. While the companies overlap in several areas such as treatments for brain, women's health, and stomach ailments, Allergan brings therapies for removing frown lines and double chin treatments. The transaction is expected to close in early 2020.


Allergan divides its business into has three operating segments: US Specialized Therapeutics, US General Medicine, and International.

The US Specialized Therapeutics segment offers certain branded products within the US under the categories Medical Aesthetics (Botox Cosmetics, Juvederm Collection, Alloderm, Coolsculpting, Breast Implants); Eye Care (Restasis, Lumigan); and Neuroscience and Urology (Botox Therapeutics). The segment accounts for about 45% of the company's total revenue.

Focusing on newly developed pharmaceutical products, US General Medicine brings in around a third of sales. Its offerings include branded products that fall outside the US Specialized Therapeutics segment, including Central Nervous System (Viibryd/Fetzima, Vraylar), Gastrointestinal (Carafate/Sulcrate, Linzess/Constella, Zenpep), Women's Health (Lo Loestrin), Anti-Infectives, and Diversified Brands (Bystolic/Byvalson). The segment accounts for about a third of the company's total revenue.

The International segment comprises revenue generated from product sold outside the US. Key offerings include Medical Aesthetics, Eye Care, and Botox Therapeutics and Other therapeutic products. It accounts for more than 20% of the company's total revenue.

Geographic Reach

 Allergan's global and US administrative headquarters are in Madison, New Jersey, while its executive headquarters are in Dublin, Ireland. Its about 15 manufacturing facilities are located in the US (New Jersey, California, Ohio, and Texas), as well as Ireland, Brazil, Costa Rica, Belgium, and France. It also has administrative and R&D facilities in Texas, New Jersey, California, and Florida, as well as the UK. The US contributes about 80% of the company's sales.

Sales and Marketing

Customers of Allergan's branded and aesthetic products are primarily drug wholesalers, retailers, and distributors. These include national drugstore and grocery chains, hospitals, clinics, mail-order retailers, government agencies, and managed healthcare providers. Certain medical aesthetic products and devices are also sold directly to physicians.

Allergan has a few very large customers, including McKesson and Cardinal Health, which each account for about a quarter of the company's total revenue, and AmerisourceBergen, which accounts for more than 20%.

Allergan's sales and marketing function produces direct-to-consumer advertising to increase consumer awareness of its products. Its sales teams engage specialty physicians and surgeons to ensure they are fully informed about its product offerings. 

Financial Performance

A near-endless stream of acquisitions and divestitures means Allergan's revenue and profits over the past five years has been uneven to say the least.

In fiscal 2018 its sales reduced 1% to $15.8 billion, its first fall in sales in many years. The sale of five medical dermatology products in the US in Q3 2018 four other products out of copyright impacted on the US General Medicine business, while the US Specialized Therapeutics and International segments grew modestly. Higher sales in the US Specialized segment were driven by sales of facial aesthetics products (Botox, mainly) and the first full-year contribution from the acquired body contouring division, partially offset by falls in Allergan's old stalwart Restasis. In the International segment, sales were driven by increased demand and higher prices for Botox, as well as sales from the acquired Zeltiq business. 

Deep amortization and goodwill and asset impairments have put Allergan in the red for the last few years. In fiscal 2018 it lost $5.2 billion, a worsening on the $4.4 billion loss seen in 2017. Allergan has taken hits from downwardly-revised sales forecasts for Kybella/Belkyra, while Restasis will soon face strong generics competition. Courts ruled against Allergan in its attempt to prolong Restasis copyright by granting it to a Mohawk tribe, who invoked trival sovereign immunity to sustain copyright on the drug.

Allergan's cash position weakened in fiscal 2018, ending the year $936.8 million lower at $808.4 million. It used operating cash ($5.6 billion) and proceeds from investment sales to pay down debt and capital lease obligations and carry out share repurchases. 


Allergan's management has a big job on its hands navigating the expiry of patents, sustained losses, and the fallout of the failed blockbuster merger with Pfizer. However, the company has not announced any major shifts in its strategy and will press on with developing and commercializing high-margin branded drugs in the same categories as before. It slightly increased R&D expense in 2018, up $166 million to $2.3 billion. Sales of Botox continue to grow strongly, as do biopolar treatment Vraylar and birth control pill La Loestrin Fe, while the company has six drugs in the latter stages of development. Allergan will also ease up on acquisitions after an intensely acquisitive period, while it will make a few divestments to raise cash and pay down debt. In 2018 it sold five dermatology products to Spain's Almirall and has lined up the sale of its women's health and infectious disease unit. 

Mergers and Acquisitions

In 2019 Allergan acquired Envy Medical, which makes the Dermalinfusion non-surgical skin resurfacing system for the face and body. The transaction boosted the company's skin care portfolio.

In 2018 it agreed to buy Bonti, a private biotech specializing in neurotoxin programs for therapeutic and aesthetic applications, for $195 million. 

In 2016, in the wake of the failed Pfizer merger, Allergan went on a shopping spree. It agreed to buy eye care company ForSight VISION5 for an upfront payment of $95 million plus potential milestone payments. ForSight is developing a peri-ocular ring to deliver drugs and reduce pressure in glaucoma patients. It also bought Vitae Pharmaceuticals, which has a dermatology product pipeline including treatments for psoriasis and atopic dermatitis, for $639 million. In an even larger deal, it acquired clinical-stage biopharmaceutical Tobira Therapeutics, which is developing treatments for liver diseases including non-alcoholic steatohepatitis (NASH); that deal, valued at up to $1.7 billion, added Tobira's Cenic riviroc and Evogliptin development programs. Allergan also acquired Akama Therapeutics, which also has a NASH development program, for $50 million, and Chase Pharmaceuticals, to expand its CNS and Alzheimer's research capabilities, for $125 million.

Also that year, the company acquired gene therapy company RetroSense Therapeutics for $60 million upfront plus additional milestone payments related to RetroSense's RST-001 development program. The deal boosted Allergan's eye care pipeline; RST-001 is a novel gene therapy that is being studied for the potential treatment of Retinitis Pigmentosa.

Allergan in early 2017 bought LifeCell for $2.9 billion and Zeltiq, a fat-loss treatment company, for $2.4 billion. 

Allergan, Inc.

5 Giralda Farms
Madison, NJ 07940-1027
Phone: 1 (862) 261-7000

Firm Stats

Employer Type: Privately Owned
Chief Research and Development Officer: C David Nicholson
Partner: Anita Pittman
Chairman, President And Chief Executive Officer: Brent Saunders
Employees (This Location): 1,300
Employees (All Locations): 10,500

Major Office Locations

Madison, NJ

Other Locations

Irvine, CA
Pleasanton, CA
Whittier, CA
Highlands Ranch, CO
Washington, DC
Orlando, FL
Woodstock, GA
Meridian, ID
Gurnee, IL
Raleigh, NC
Bedminster, NJ
Morristown, NJ
Powell, OH
Center Valley, PA
Northampton, PA
Upper Darby, PA
Austin, TX
Mckinney, TX
Unionville, Canada