Allergan, Inc.

Last updated
Allergan, Inc.
Company type Public
NYSE: AGN
Industry Pharmaceuticals
Founded1948;76 years ago (1948)
Defunct2015 (2015)
FateAcquired by Actavis plc in 2015, who then renamed the group as Allergan plc
Successor Actavis
Headquarters Irvine, California, U.S.
Area served
Over 100 Countries
Key people
Paul Bisaro (executive chairman)
ProductsEye care, neurosciences, medical dermatology, medical aesthetics, breast enhancement, obesity intervention and urologics
Revenue$6.2 billion (2013) [1]
Number of employees
11400 (2013) [1]
Parent Allergan plc
Website www.allergan.com

Allergan, Inc. was an American 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. [2] It ceased operation in 2015 when it was acquired by Irish-based Actavis plc (itself a 2013 U.S. tax inversion to Ireland), who then renamed the group as Allergan plc. [3]

Contents

Early history

The company traces its roots 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 specialty 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. [4]

Acquisitions

Allergan became a publicly traded company in 1970 and was acquired by SmithKline for $259 million in 1980. [5] After generating $756 million in revenue and $80 million in profit in 1988, Allergan was spun-off by SmithKline Beckman in 1989. [5]

In July 2002, the Allergan ophthalmic surgical and contact lens care businesses were spun-off to create a new company, Advanced Medical Optics. In 2003, Allergan's flagship product, Botox, was the focus of a high-profile lawsuit and media scrutiny. [6] In March 2006, Allergan acquired Inamed Corporation for $3 billion. [7]

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). [8] 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. [9]

In November 2014, Actavis announced its intention to acquire Allergan, Inc., the manufacturer of Botox [10] Completion of the deal would increase its market capitalization to $147 billion. [11] [12] On March 17, 2015, Actavis completed the acquisition of Allergan, Inc. in a cash and equity transaction valued at approximately $70.5 billion, and the latter was folded into Actavis. The combination created a $23 billion diversified global pharmaceutical company with commercial reach across 100 countries. In June 2015, Actavis officially changed its name to Allergan, plc. [13]

In June, Allergan, Inc. announced it would acquire Kythera Biopharmaceuticals for around $2.1 billion. [14]

Attempted acquisition by Valeant Pharmaceuticals

On April 22, 2014, details were released by Valeant Pharmaceuticals and hedge fund CEO, Bill Ackman, about a $46 billion (CAD) offer presented to Allergan. [15] 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. [16] On May 31 the offer was revised and increased to $53.3 billion. [17]

On June 18, Valeant began its tender offer for a hostile takeover of Allergan. [18] On 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. [19] 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. [20] 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. [21] On November 17, 2014, Actavis, plc announced it would acquire Allergan in a white knight bid for approximately $66 billion, putting an end to Valeant's hostile takeover attempt. [22]

Company Structure

Allergan, Inc.
(Acq 2015 by Actavis, plc)

Kythera Biopharmaceuticals
(Acq 2015)

MAP Pharmaceuticals Inc
(Acq 2013)

Inamed Corporation
(Acq 2006)

Advanced Medical Optics
(Spun off in 2006)

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. [23]

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References

  1. 1 2 "Allergan Today". allergan.co.uk.
  2. ↑ Pflanzer, Lydia Ramsey. "How Allergan went from a tiny Los Angeles eye care company to the biggest takeover target of 2015". Business Insider. Retrieved 2020-09-10.
  3. ↑ "From Actavis to Allergan: One pharma company's wild dealmaking journey". Forbes Magazine . 30 July 2015. For a master class in mergers and acquisitions, one need only look at the company formerly known as Actavis. Now called Allergan, after its $70 billion acquisition of that maker of Botox last fall, the pharmaceutical firm has undertaken a dizzying series of deals in just the last few years, reinventing and renaming itself in a fashion that might make the artist formerly known as The Artist Formerly Known As Prince proud.
  4. ↑ "Company History". allergan.co.uk.
  5. 1 2 Berkman, Leslie (1989-07-27). "Shareholders OK Deal Spinning Off Beckman, Allergan". Los Angeles Times. Retrieved 2017-02-12.
  6. ↑ Piccalo, Gina (2003-09-22). "Taking aim at Botox". Los Angeles Times. ISSN   0458-3035 . Retrieved 2016-09-08.
  7. ↑ Plunkett, Jack (2007). The Almanac of American Employers 2008. Plunkett Research, Ltd. ISBN   9781593920951 . Retrieved 2017-02-12.
  8. ↑ "Allergan, Inc.: quotes & news - Google Finance". google.com.
  9. ↑ "Allergan, Inc. Completes Sale of Obesity Intervention Business".
  10. ↑ "BBC News - Actavis to buy Botox-maker Allergan $66bn". BBC News. 17 November 2014.
  11. ↑ Caroline Chen (2014-11-17). "Actavis Surges to Top Drugmaker Ranks With Acquisitions". Bloomberg.com.
  12. ↑ Willhite, James (2014-11-17). "The Morning Ledger: Actavis Could Again Evade Treasury's Grasp for Post-Inversion Tax Break". WSJ.
  13. ↑ "Actavis plc is now Allergan plc". Archived from the original on 5 May 2016. Retrieved 16 June 2015.
  14. ↑ "Allergan to Acquire Kythera for $2.1B". GEN. 17 June 2015.
  15. ↑ "Valeant, Bill Ackman bid $45B for Botox-maker Allergan". Canadian Associated Press / CBC. 22 April 2014. Retrieved 22 April 2014.
  16. ↑ Serafino, Phil (28 May 2014). "Valeant raises offer for Allergan". Bloomberg. Retrieved 29 May 2014.
  17. ↑ Basak, Sonali (31 May 2014). "Valeant raises offer for Allergan for second time". Bloomberg. Retrieved 31 May 2014.
  18. ↑ Basak, Sonali (18 June 2014). "Valeant Begins Tender Offer for Allergan Hostile Takeover". Bloomberg. Retrieved 7 October 2014.
  19. ↑ Jef Feeley (27 August 2014). "Allergan Says Valeant Seeking Hearing on Shareholder Meeting". Bloomberg. Retrieved 7 October 2014.
  20. ↑ Koons, Cynthia (27 August 2014). "Allergan Sets December Shareholder Vote on Valeant Bid". Bloomberg. Retrieved 7 October 2014.
  21. ↑ Jef Feeley (27 August 2014). "Valeant, Ackman Win Bid to Fast-Track Allergan Case". Bloomberg. Retrieved 7 October 2014.
  22. ↑ David Welch (17 November 2014). "Actavis to Buy Allergan for $66 Billion, Tops Valeant Bid". Bloomberg.com.
  23. ↑ "Allergan - Allergan Reassures Patients and Surgeons of the Quality and Safety of Its Breast Implant Devices Sold and Distributed Worldwide". shareholder.com. Archived from the original on 2014-02-22. Retrieved 2014-02-10.
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