Allergan Explained

Allergan plc
Type:Subsidiary
Industry:Pharmaceuticals
Predecessors:Allergan, Inc. and Actavis before the 2015 tax inversion and merger
Founded:, upon the combination of Allergan Finance, LLC (Actavis) & Warner Chilcott
renamed to Allergan Plc upon the merger of Allergan, Inc and Actavis
Hq Location:Clonshaugh Business & Technology Park, Coolock, D17 E400
Hq Location City:Dublin
Hq Location Country:Ireland
Locations:40 manufacturing facilities, 27 global R&D centres and marketing/sales facilities worldwide.
Area Served:~100 countries
Products:Branded pharmaceuticals
Revenue: $16.089 billion
Revenue Year:2019
Net Income: -$5.142 billion
Net Income Year:2018
Assets: $94.699 billion
Assets Year:2019
Equity: $58.195 billion
Equity Year:2019
Num Employees:17,800
Num Employees Year:2018
Parent:AbbVie

Allergan plc is an American, Irish-domiciled pharmaceutical company that acquires, develops, manufactures and markets brand name drugs and medical devices in the areas of medical aesthetics, eye care, central nervous system, and gastroenterology.[1] [2] [3] The company is the maker of Botox.

Allergan plc was formed in March 2015 when Irish–registered Actavis plc acquired U.S.–registered Allergan, Inc., and assumed the Allergan name.[4] [5] In 2016, Allergan sold its generic drugs business, Actavis, to Teva Pharmaceuticals for $40.5 billion.[6]

In June 2019, U.S. pharmaceutical company AbbVie announced it had reached an agreement to acquire Allergan for $63 billion. The merged company would be domiciled in the U.S. for tax purposes.[7] [8]

Global headquarters

Allergan's global headquarters are located in Dublin, Ireland. The company also maintains a significant presence in the United States, with administrative and operational headquarters located in various locations across the country, including Irvine, California and Madison, New Jersey.[9]

History

Allergan plc was created from the 2015 merger and Irish corporate tax inversion of two companies, Irish-based Actavis plc and U.S.-based Allergan, Inc.[10]

Allergan, Inc.

In 1948, pharmacist Gavin S. Herbert founded Allergan Pharmaceuticals, Inc. In 1970, Allergan, Inc. became a public company via an initial public offering. In 1977, Allergan announced plans to build a factory in Westport, Ireland.[11]

In 1980, it was acquired by SmithKline Corporation for $259 million[12] and was later spun-off by SmithKline Beecham in 1989.[13] In 1989, Allergan opened a manufacturing plant in Waco, Texas, to manufacture eye care products.[14]

In 1991, Allergan acquired the company Oculinum which manufactured products for eye muscle disorders.[15] [16] Following the acquisition, the product was renamed Botox.[17] In 1996, Allergan received FDA approval for Alphagan ophthalmic solution for open-angle glaucoma and ocular hypertension.[18] In 1998, Allergan established The Allergan Foundation, a private US-based charitable foundation.[19]

In 2005, Allergan acquired Inamed which had a licensing agreement with Corneal Group Laboratoires for Juvederm products.[20] [21] [22] In 2006, Allergan gained rights to Juvederm products.[23] [24]

Actavis plc

In the spring of 1983, colleagues Allen Chao and David Hsia formed Watson Pharmaceuticals, a drug development in Libertyville, Illinois.[25] In late fall of 1983, the company moved to Corona, California, and began to develop and manufacture generic pharmaceuticals.[26] In February 1993, the company became a public company via an initial public offering.

In 2011, the company moved its corporate headquarters from Corona, California, to Parsippany-Troy Hills, New Jersey.[27] [28] On October 31, 2012, Watson acquired Actavis for and took the Actavis name.[29] In 2013, Actavis acquired Irish-registered Warner Chilcott for $5 billion and used the transaction to execute a corporate tax inversion to Ireland.[30] [31] In 2014, Actavis acquired Forest Laboratories for $25 billion.[32]

Acquisition by Actavis plc (2015–2019)

In 2015, Irish-based Actavis plc acquired U.S.-based Allergan, Inc., for $70 billion, and in effect redomiciled Allergan to Ireland in a corporate tax inversion.[4] [33] Actavis CEO Brent Saunders became the CEO of the combined company.[34] In June 2015, the company took the Allergan name.[35]

As of 2020, the company operated four facilities in Ireland.[36]

2015

On July 7, 2015, the company acquired the rights to the late stage CGRP migraine portfolio of Merck & Co, as well as two experimental drugs for an upfront payment of $250 million.[37] Later that summer, the company acquired Oculeve for $125 million[38] and Naurex for an upfront payment of $560 million.[39] In October 2015, the company acquired AqueSys, developer of ocular implants for an initial payment of $300 million,[40] along with Kythera Biopharmaceuticals, a company focused on the medical aesthetics market, for $2.1 billion.[41] [42]

In late 2015, the company announced the acquisition of Northwood Medical Innovation, the developer of earFold.[43] On November 25, 2015, the company announced it would partner with Rugen Therapeutic to develop new therapies for autism spectrum disorder and obsessive compulsive disorder.[44]

Abandon Merger with Pfizer

On November 23, 2015, Allergan and Pfizer announced their intention to merge in a $160 billion transaction.[45] On April 5, 2016, after the Obama administration announced its plan to ban tax inversions, Pfizer terminated the acquisition and paid Allergan a $150 million breakup fee.[46] [47]

2016

In April 2016, the company announced it would partner with Heptares Therapeutics to develop a subtype-selective muscarinic agonists for Alzheimer's disease[48] [49] and announced the acquisition of Topokine Therapeutics, gaining the phase IIb/III compound XAF5 - a treatment for dermatochalasis.[50]

In August 2016, Allergan plc sold its generic drugs business to Teva Pharmaceutical Industries in a $40.5 billion deal[51] [52] and announced the acquisition of ForSight VISION5 for more than $95 million.[53]

In September 2016, CEO Saunders announced what he called a social contract to limit prices on the company's medications.[54] [55] That same month, the company acquired RetroSense Therapeutics for more than $60 million,[56] announced the acquisition of Tobira Therapeutics for approximately $1.7 billion[57] and, a day later, the acquisition of Akarna Therapeutics for $50 million.[58]

In October 2016, the company sold Anda, its generic drug distribution business, to Teva for $500 million[59] [60] and acquired Vitae Pharmaceuticals, focused on dermatology treatments, for $639 million.[61] [62] That same month, the company announced it would acquire Motus Therapeutics, a developer of treatments for gastrointestinal disorders, for $200 million.[63] On November 22, 2016, the company acquired Chase Pharmaceuticals for $125 million.[64] [65]

2017-2020

In 2017, the company acquired LifeCell, a specialist in regenerative medicine, for $2.9 billion and Zeltique Aesthetics, maker of CoolSculpting, for $2.4 billion.[66] [67] [68] [69] On June 7, the company announced the acquisition of Keller Medical, a company that manufactures devices for use during breast augmentation surgery.[70] On December 12, the company announced the acquisition of Repros Therapeutics, a developer of drugs for reproductive system diseases.[71]

In September 2018, Allergan acquired the aesthetic company, Bonti, for $195 million.[72] [73]

In March 2019, the company acquired Envy Medical, Inc.[74] As of 2019, Allergan's Botox product had annual sales of nearly $4 billion.[75]

In 2018, along with several other drug manufacturers and distributors, the company was sued by several municipalities and states in the U.S. due to the manufacture of opioids, which have been abused in what has been referred to as the opioid epidemic.[76] [77]

Acquisition by AbbVie Inc. (2019-present)

In June 2019, U.S. pharmaceutical company AbbVie announced it had reached an agreement to acquire Allergan for $63 billion, which would return Allergan to the U.S. for tax purposes. On the announcement of the transaction, Abbvie disclosed that its 2019 net effective tax rate was 9%, but that post the acquisition, the Group's effective tax rate would rise to 13%. The merger was expected to close in 2020.

On May 8, 2020, AbbVie completed its acquisition of Allergan.

Acquisition history

Products

Allergan acquires, develops, manufactures and markets branded products in four therapeutic areas: medical aesthetics, eye care, central nervous system, and gastroenterology. The company manufactures several pharmaceutical products including Botox (botulinum toxin), Juvederm (injectable filler), CoolSculpting (cryolipolysis), Alphagan (brimonidine), Vraylar (cariprazine HCI), Linzess (linaclotide), and Ubrelvy (ubrogepant).[78]

See also

Notes and References

  1. Web site: Allergan plc 2018 Form 10-K Annual Report. U.S. Securities and Exchange Commission.
  2. News: New Tax Law Haunts Inversion Deals. Rockoff. Jonathan D.. 11 February 2018. The Wall Street Journal. Similarly, Allergan, a drugmaker that moved its headquarters to Ireland after a 2013 acquisition but gets about 80% of revenue in the U.S., expects the loss of deductions on intercompany loans will largely be balanced out by lower taxes on its U.S. sales..
  3. News: Rockoff. Jonathan D.. Allergan To Sell Businesses in Bid To Appease Shareholders. 2018-05-30. Wall Street Journal. 2020-04-07. en-US. 0099-9660.
  4. 30 July 2015. From Actavis to Allergan: One pharma company's wild dealmaking journey. Fortune. 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..
  5. News: Haggerty. Neil. Actavis Changes Name to Allergan After Deal For Botox Maker. 2015-06-15. Wall Street Journal. 2020-04-07. en-US. 0099-9660.
  6. Web site: Why Teva's $40 Billion Deal for Allergan's Generic Drugs Is Being Delayed. Fortune. en. 2020-04-07.
  7. Web site: Botox maker Allergan bought by US drug giant for $63bn. The Guardian. Julia Kollewe. 25 June 2019. 25 June 2019.
  8. News: AbbVie Strikes $63 Billion Deal for Botox Maker Allergan. Bloomberg News. Rebecca Spalding. Riley Griffin. Bloomberg.com. 25 June 2019. 25 June 2019. The deal will return Allergan to the U.S., at least for tax purposes..
  9. Web site: History of Allergan . March 2023 .
  10. Web site: How Allergan went from a tiny Los Angeles eye care company to the biggest takeover target of 2015. Ramsey. Lydia. Business Insider. 2020-04-07.
  11. 2020-01-28. Allergan opens new €160m biologics plant in Westport. RTÉ.ie. en.
  12. Book: Federal Trade Commission Decisions. July 1980. U.S. Government Printing Office. en.
  13. News: Shareholders OK SmithKline Deal Spinning Off Beckman, Allergan . Berkman . Leslie . . July 27, 1989.
  14. Web site: Allergan, with Waco plant, could be sold in $63 billion deal. Copeland. Mike. WacoTrib.com. en. 2020-04-07.
  15. Billions and Billions for Botox. Vara. Vauhini. The New Yorker. 18 November 2014. en. 2020-04-07.
  16. News: Associated Press. Eye Drug Approved By F.D.A.. 1990-01-09. The New York Times. 2020-04-07. en-US. 0362-4331.
  17. Web site: Taking a chance on Botox paid off for Allergan. 31 May 2018. www.healio.com. en. 2020-04-07. Steinert. April.
  18. Web site: ALPHAGAN (brimonidine tartrate ophthalmic solution). 2016. fda.gov.
  19. Web site: Allergan discloses economic impact of Cincinnati plant. www.bizjournals.com. 2020-04-07.
  20. Web site: Inamed Says Board Approves Allergan Offer. 2005-12-16. Los Angeles Times. en-US. 2020-04-07.
  21. Web site: Allergan reports 15.8% increase in 2006 eye care pharmaceutical sales. February 2, 2007. www.healio.com. en. 2020-04-07.
  22. Web site: e10vk - Allergan, Inc.. www.sec.gov. 2020-04-07.
  23. Web site: Allergan buys Groupe Corneal for $217M - Pharmaceutical industry news. www.thepharmaletter.com. 2020-04-07.
  24. News: FDA staff says Allergan's new dermal filler effective. 2013-04-30. Reuters. 2020-04-07. en.
  25. Web site: Pharmaceutical leader and Purdue alumnus brings expertise to Purdue-based contract drug manufacturing organization. Purdue News Service. www.purdue.edu. en. 2020-04-07.
  26. Web site: Prescription for Success : Drug Maker Watson Thrives in Crowded Generic Market. 1996-06-12. Los Angeles Times. en-US. 2020-04-07.
  27. News: Todd. Susan. Generic drug maker Watson opening research operations in North Brunswick. January 30, 2012. NJ.com.
  28. Web site: INDUSTRY: Corona pharmaceuticals plant to focus on contraceptives now. 2014-01-02. Press Enterprise. en-US. 2020-04-07.
  29. News: Watson to buy Actavis for at least 4.25 billion euros. 2012-04-26. Reuters. 2020-04-07. en.
  30. News: Actavis to acquire Warner Chilcott in $5bn pharmaceutical deal. 20 May 2013. Financial Times. Actavis sought to fend off takeover threats by purchasing Dublin-based rival Warner Chilcott in a $5bn deal designed to turn it into the world's third-largest generic drug company by sales. The agreed all-stock deal, worth $8.5bn including net debt, follows recent efforts by competitors including Valeant and Mylan to acquire Actavis. Analysts said the move could spark alternative bids for Actavis or Warner Chilcott at a time of rapid consolidation in the sector. [..] The transaction will also exploit tax savings through the creation of a new Irish holding company, cutting Actavis' estimated 28 percent tax rate this year to 17 per cent and helping create annual synergies that the company said would exceed $400m..
  31. News: Mattioli. Dana. Actavis-Allergan Deal Paves Way for Tax Savings. 2014-11-17. Wall Street Journal. 2020-04-07. en-US. 0099-9660.
  32. News: Cimilluca. Dana Mattioli, Jonathan D. Rockoff and Dana. Actavis Agrees to Buy Forest Labs for $25 Billion. 2014-02-18. Wall Street Journal. 2020-04-07. en-US. 0099-9660.
  33. Web site: As Treasury Moves to Bring Back Inversions, Here are 7 of the Biggest Recent Deals. Stewart. Emily. TheStreet. en-us. 2020-04-07.
  34. Web site: Allergan started out as a tiny but beloved Southern California eye care firm before expanding to a $130 billion company. Here's how the Botox-maker fell out grace with investors and then became a takeover target.. Ramsey. Lydia. Business Insider. 2020-04-07.
  35. Web site: Actavis Officially Changes Name to Allergan. BioSpace. en-US. 2020-04-07.
  36. Web site: Allergan launches €145m Botox site as merger nears. independent. en. 2020-04-07.
  37. News: Dulaney . Chelsey . Allergan Buys Rights to Merck's Migraine Drugs . . July 7, 2015 . subscription .
  38. Web site: Allergan buys medical device firm Oculeve for $125m. 2015-08-10. Verdict Medical Devices. en-GB. 2020-04-08.
  39. News: Stahl. George. Allergan to Acquire Naurex for $560 Million Cash. 2015-07-26. Wall Street Journal. 2020-04-08. en-US. 0099-9660.
  40. Web site: Allergan to acquire AqueSys. September 4, 2015. www.healio.com. en. 2020-04-08.
  41. News: Bray. Chad. Allergan to Buy Kythera Biopharmaceuticals for $2.1 Billion. 2015-06-17. The New York Times. 2020-04-08. en-US. 0362-4331.
  42. Web site: Form 8-K - Warner Chilcott Limited. October 2015. www.sec.gov. 2020-04-08.
  43. Web site: Allergan agrees to acquire earFold device for correcting prominent ears. November 5, 2015. www.healio.com. en. 2020-04-08.
  44. Web site: Allergan and Rugen Therapeutics team up on autism and OCD research. www.thepharmaletter.com. 2020-04-08.
  45. News: Pfizer seals $160bn Allergan deal to create drugs giant . . November 23, 2015.
  46. News: Rockoff . Jonathan . Pfizer Walks Away From Allergan Deal . . April 6, 2016 . subscription .
  47. News: Hoffman. Richard Rubin and Liz. New Rules on Tax Inversions Threaten Pfizer-Allergan Deal. 2016-04-05. Wall Street Journal. 2020-04-08. en-US. 0099-9660.
  48. Web site: Solo again, Allergan strikes a $3.3B deal on Heptares' Alzheimer's portfolio. FierceBiotech. en. 2020-04-08.
  49. Web site: Form 10-Q - ALLERGAN PLC. September 30, 2016.
  50. Web site: Allergan Makes Another Deal, Bags Boston's Topokine for $85 Million+. BioSpace. en-US. 2020-04-08.
  51. Web site: EX-10.66 - SETTLEMENT AGREEMENT AND MUTUAL RELEASES. www.sec.gov. 2020-04-08.
  52. Web site: Teva completes $40.5B Actavis deal, enters into $500M for generics distributor. www.bizjournals.com. 2020-04-08.
  53. Web site: Allergan scoops up yet another biotech company. McElhaney. Alicia. TheStreet. en-us. 2020-04-08.
  54. Web site: Behind The Scenes Of Allergan's Social Contract. www.lifescienceleader.com. 2020-04-08.
  55. Web site: Allergan CEO Saunders Promises Responsible Drug Prices in 'Contract'. Fortune. en. 2020-04-08.
  56. Web site: Allergan acquires RetroSense Therapeutics. September 7, 2016. www.healio.com. en. 2020-04-08.
  57. News: Allergan to Buy Tobira Therapeutics in $1.7 Billion Deal . Tess . Stynes . . September 20, 2016 . subscription .
  58. News: Allergan to Acquire U.K.'s Akarna Therapeutics . Tess . Stynes . . September 21, 2016 . subscription .
  59. Web site: FORM 10-K-ALLERGAN PLC - WARNER CHILCOTT LIMITED. December 2018.
  60. News: Allergan to sell Anda drug distribution business to Teva. 2016-08-03. Reuters. 2020-04-08. en.
  61. News: Hufford. Austen. Allergan to Buy Vitae Pharmaceuticals for $639 Million. 2016-09-14. Wall Street Journal. 2020-04-08. en-US. 0099-9660.
  62. Web site: Allergan Completes Vitae Tender Offer. Practical Dermatology. en. 2020-04-08.
  63. Web site: Allergan to acquire Boston drug company for $200M. www.bizjournals.com. 2020-04-08.
  64. Web site: BRIEF-Allergan completes acquisition of Chase Pharmaceuticals. Business Insider. 2020-04-08.
  65. Web site: Allergan could pay $1 billion for chase pharma. 2016-11-25. RealMoney. en. 2020-04-08.
  66. News: Allergan to buy fat-fighter Zeltiq Aesthetics for $2.48 billion. 2017-02-13. Reuters. 2020-04-08. en.
  67. Web site: Allergan completes $2.9B LifeCell acquisition. www.spglobal.com. en-us. 2020-04-08.
  68. Web site: Allergan Will Buy Zeltiq for $2.48 Billion. Fortune. en. 2020-04-08.
  69. Web site: BRIEF-Allergan completes Zeltiq acquisition. Business Insider. 2020-04-08.
  70. Web site: Allergan To Buy Medical Device Company And Breast Surgery Funnel-maker Keller Medical Inc.. 2017-06-07. Fox Business - MarketWatch Pulse. en-US. 2020-04-08.
  71. Web site: Allergan Swoops in and Bags Troubled Repros Therapeutics. BioSpace. en-US. 2020-04-08.
  72. Web site: Botox Maker Allergan Buys Aesthetic Company Bonti for $195 Million Up Front. BioSpace.
  73. Web site: Allergan to Acquire Bonti Adding New Neurotoxin Programs to Medical Aesthetics Pipeline. BioSpace.
  74. Web site: Allergan Acquires Envy Medical, Inc., Adding Skin Resurfacing Dermalinfusion System to Best-in-Class Medical Aesthetics Portfolio. BioSpace.
  75. Web site: Allergan unveils new Botox plant ahead of $63B AbbVie merger. FiercePharma. en. 2020-04-08.
  76. News: Stempel. Jonathan. New York City sues drug companies over opioid epidemic. January 23, 2018. Reuters.
  77. News: Gurman. Sadie. DOJ to Support Lawsuits Against Companies Selling Opioids. 2 March 2018. Drug Discovery & Development. 2 March 2018. Advantage Business Media. Associated Press. Mulvihill. Geoff.
  78. Web site: Migraine sufferers have new oral medication with FDA approval of Allergan's Ubrelvy. Bursztynsky. Jessica. 2019-12-26. CNBC. en. 2020-04-08.

This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Allergan".

Except where otherwise indicated, Everything.Explained.Today is © Copyright 2009-2024, A B Cryer, All Rights Reserved. Cookie policy.