Orange County Business Journal

Allergan Considers Lap-Band Sale

Vita Reed Wednesday, 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.