Allergan Considers Lap-Band SaleWednesday, October 31, 2012
Irvine-based drug maker Allergan Inc. is considering a sale of its weight-loss device unit, which has seen its revenue fall for five consecutive quarters.
Allergan said that its sales for the Lap-Band weight-loss device and other products for the third quarter came in at $37.4 million, down 25% from 2011’s third quarter.
The company expects obesity treatment sales to come in at $160 million for the full year, down from a peak of $298 million in 2008.
Lap-Band is an adjustable and reversible gastric band that’s placed around a patient’s stomach. The device has been the subject of some including allegations that some patients died after surgeries performed at weight-loss clinics that used the device.
Allergan stopped selling the device to a chain of weight-loss clinics that advertised under the 1-800 Get Thin and were at the center of the controversy.
Allergan is prepared to provide documents to interested parties regarding Lap-Band, Chief Executive David Pyott said.
Potential buyers could include strategic acquirers and private equity firms.