Year in review: Allergan spent a good portion of 2006 integrating and digesting its big prize: Inamed Corp., the Santa Barbara-based medical cosmetics maker it bought for $3.2 billion early in the year.
The Inamed buy brought Allergan Juv & #233;derm, a lower-face wrinkle filler that it plans to cross-sell with the cosmetic form of flagship Botox, which is used to smooth out wrinkles on the upper part of the face.
“The ability to offer a complete package for rejuvenation is very important to our customers,” Chief Executive David Pyott said.
The company created a division, Allergan Medical, in the fall and named Robert Grant as its president.
And Allergan added a few other things to its basket. Although Inamed dominated the headlines, it spent $217 million in November for Groupe Corneal Laboratories of Paris, a company that Juv & #233;derm came from.
The Food and Drug Administration, meanwhile, cleared silicone breast implants for the majority of American women after a nearly 15-year absence. Allergan got into the implant business with the Inamed deal.
Sales of Botox exploded, reaching the $1 billion mark last year. The company’s drug sales, which include eye drugs for glaucoma,Lumigan, Combigan and Ganfort, Restasis, which fights dry eyes, and Refresh artificial tears,were up nearly 16% in 2006.
What’s ahead: Allergan will make a big push into one of its new businesses, silicone breast implants. The company said it sees breast implant sales of $250 million to $280 million.
Allergan also has rolled out Juv & #233;derm nationally. The drug maker’s gearing up with a marketing campaign designed to make the brand a household name, similar to the drug maker’s work with Botox Cosmetic a few years ago.
The company also is going to integrate a smaller acquisition, Swiss obesity treatment maker EndoArt, which it picked up for $97 million. Allergan’s other obesity fighter is Lap-Band, an adjustable stomach band.
Wall Street’s take: Allergan’s year on Wall Street has generally been a strong one, with shares up 7% so far and nearly 10% in the past 12 months. Overall, Wall Street has taken to the Allergan-Inamed combination.
The company’s outlook for 2007 generally has been well-received by Wall Street. Allergan said it sees sales of $3.5 billion to $3.6 billion in 2007.
Profit could come in at $649 million to $655 million, not including accounting adjustments.
Analysts expect the company to earn $655 million on sales of $3.6 billion in 2007.
,Vita Reed
WHO’S IN CHARGE
David Pyott
Chairman, chief executive, Allergan
Joined company: 1998
Education: holds diploma in German, European law from University of Amsterdam, master’s from University of Edinburgh, business master’s from London Business School
Career: Joined Sandoz, which became part of Novartis AG, in 1980. Spent 15 years in various positions with drug maker. Named head of Sandoz Nutrition unit in 1995
Notable: Drives sporty Aston-Martin sports car. Otherwise, frugal, unflashy. Office still has much of the same furniture he inherited nearly a decade ago.
Headquarters: 2525 Dupont Drive, Irvine
Employees: 6,500; 1,700 in OC
Business: eye, skin drugs, medical cosmetics
Market value, as of April 2: $17 billion
2006 revenue: $3.1 billion, up 32%
2006 net loss: $127.4 million, down 130%
