Allergan, Inc.

Allergan, Inc.

Type	Public
Industry	Eye care, neurosciences, medical dermatology, medical aesthetics, breast enhancement, obesity intervention and urologics
Fate	bought by Allergan, plc when it was known as Actavis
Founded	1948
Headquarters	Irvine, California
Area served	Over 100 Countries
Key people	Paul Bisaro, Executive Chairman
Revenue	$6.2 billion (2013)[1]
Number of employees	11400 (2013)[1]
Website	www.allergan.com

Allergan headquarters in Irvine

Allergan, Inc. was a global pharmaceutical company focused on eye care, neurosciences, medical dermatology, medical aesthetics, breast enhancement, obesity intervention and urologics. Allergan, Inc. was formed in 1948, incorporated in 1950 and became a public company in 1970.

History

The company can trace its routes back to 1948 and pharmacist Gavin S. Herbert, who in 1950 established Allergan Pharmaceuticals, Inc. Allergan focused on the discovery and development of novel formulations for speciality markets, as well as intimate collaboration with physicians and the scientific community. 1953 saw Allergan producing eye drops and formulating new products such as the first cortisone eye drop to treat allergic inflammation and the first ophthalmic steroid decongestant.^[2]

Allergan became a public listed company in 1970, which then merged with SmithKline Beckman in 1980. By 1989 it was re-established as an independent entity.^[2]

2000–2009

In July 2002, the Allergan ophthalmic surgical and contact lens care businesses were spun-off to create a new company, Advanced Medical Optics. In March 2006, Allergan acquired Inamed Corporation.

2010–2015

On March 1, 2013, the company acquired MAP Pharmaceuticals Inc., a development-stage company mainly researching the treatment of migraine and other oral drugs in Neurology for approximately $958 million. The principal products of this sub-company are under review with the US Food and Drug Administration (FDA).^[3] In December 2013, the company sold its obesity intervention business to Apollo Endosurgery, Inc., for a cash payment of $75 million and a $15 million minority equity interest in Apollo Endosurgery.^[4]

In November 2014 Actavis, plc announced its intention to acquire Allergan, Inc., the manufacturer of Botox^[5] Completion of the deal would increase its market capitalization to $147 billion.^[6][7] On March 17, 2015, Actavis, plc completed the acquisition of Allergan, Inc. in a cash and equity transaction valued at approximately $70.5 billion. The combination created a $23 billion diversified global pharmaceutical company with commercial reach across 100 countries. In June 2015, Actavis, plc officially changed its name to Allergan, plc.^[8]

In June Allergan, Inc. announced it would acquire Kythera Biopharmaceuticals for around $2.1 billion.^[9]

Attempted acquisition by Valeant Pharmaceuticals

On April 22, 2014, details were released by Valeant Pharmaceuticals and hedgefund CEO, Bill Ackman, about a $46 billion (CAD) offer presented to Allergan.^[10] Valeant proposed to exchange $48.30 in cash and 0.83 shares of Valeant per Allergan share. Allergan, Inc. stockholders would own 43 per cent of the combined company. This bid was rejected by Allergan as being too risky, claiming Valeant's business model of serial acquisitions and low organic growth being unsustainable. Soon after Valeant released a statement saying a new offer will be presented May 28, 2014, where it emerged that Valeant had increased their offer to $49.4 billion.^[11] On May 31 the offer was revised and increased to $53.3 billion.^[12] On June 18, Valeant began its tender offer for a hostile takover of Allergan.^[13] In August 27, 2014, Valeant and Pershing Square Capital Management asked a Chancery Judge to set a trial for September 24, 2014 to decide on whether Valeant and Pershing had properly secured enough support from Allergan shareholders to force a meeting of investors to consider replacing a majority of the company’s directors.^[14] On the same day Allergan announced that they had set a December shareholder vote to decide whether the company should replace part of the board of directors.^[15] In the afternoon of August 27, Bloomberg reported that Valeant and Pershing Square had won their case with the Chancery Judge setting an October 6 date for the aforementioned trial.^[16] On November 17, 2014, Actavis, plc announced it would acquire Allergan in a white knight bid for approximately $66 billion, putting an end to Valeants hostile takeover attempt.^[17]

Company Structure

Safety reports

In 2011, FDA reported issues in the investigation of safety of silicone gel-filled breast implants. However, the company announced later the reassurance to patients of the safety and exclusion of its drugs from the investigated breast implant devices, stating that all of its products are above safety standards around the world.^[18]

The use of infant foreskin fibroblast in products

The use of foreskin fibroblasts in some of the company's cosmetic products such as "Skinmedica" has caused controversy.^[19]

References

External links

• Allergan website
• Allergan foundation