Categories Earnings, Other Industries

Allergan to sell women’s health and infectious disease units

Allergan Plc (AGN) is planning to sell its women’s health and infectious disease businesses after completing its strategic review. The sale would help the drug maker to concentrate on eye care, medical aesthetics, and dermatology, gastrointestinal and central nervous system businesses.

Allergan will use the proceeds from this transaction to pay down debt and buy back shares. This strategic review will enable the company to consider options such as making acquisitions, selling assets, splitting up, and using the capital to repurchase shares.

In the Bernstein Thirty-Fourth Annual Strategic Decisions Conference executive chief Brent Saunders said, “We have initiated a process for creating value by selling our women’s health and infectious disease businesses.”

The women’s health business is valued at $4 billion and the infectious disease business at $2 billion, according to CNBC citing a Cowen research note.

In a separate release, Allergan issued a nationwide recall of Taytulla birth control pills as nearly 170,000 packs contained placebo pills in the wrong place. A physician notified Allergan of the packaging error that meant the first four days in the pack contained the maroon placebo capsules, which potentially put women at risk of pregnancy. Typical pack contains 24 days of pink capsules with oral contraceptive hormones, followed by the placebo.

The company’s stock has been struggling since last year. Shares of Allergan, which were trading down during the early hours of trading, turned positive after 12 PM ET today. For the past 52 weeks, the stock had been on the downward trend and tumbled more than 32%.

For the recently completed first-quarter, the Dublin, Ireland-headquartered company reported revenue and adjusted earnings figures that exceeded Street’s expectations. A 13% increase in Allergan’s core business, including Botox and Juvederm brands, drove a 3% rise in revenue for the quarter.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,


Add Comment
Viewing Highlight