Headquarters: 2525 Dupont Drive, Irvine
Employees: 7,900; 2,000 in OC
Business: drug maker
Market value as of April 1: $18 billion
Revenue for 12 months ended Dec. 31: $3.9 billion, up 29%
Net income for 12 months ended Dec. 31: $499.3 million, versus a loss of $127.4 million in the year-ago
period
Year in review:
Orange County’s most valuable company by market value spent 2007 continuing its march into medical cosmetics, through its steady flagship drug Botox, as well as lower-face fillers such as Juv & #233;derm, breast implants and Lap-Band, a stomach banding system used to treat obesity.
Botox continued its surge, reaching $1.2 billion in sales last year. Sales from Allergan’s eye drugs, which are the company’s historical root, totaled $1.8 billion last year. Allergan’s eye drug lineup includes treatments for glaucoma, dry eye and artificial tears.
The company moved into a new market in October, when it spent $370 million for Esprit Pharma, a New Jersey company that made drugs for treating overactive bladders.
What’s ahead:
Allergan has several products on tap for possible Food and Drug Administration approval and launch this year. They include Sanctura XR for overactive bladders and Lumigan X, a second-generation version of Lumigan, which treats eye disease glaucoma.
The company is working on a project with Clinique Laboratories, a unit of Este & #233; Lauder Cos., to develop a line of skin products to be sold in doctor’s offices.
The company will be working with Covidien, which was once the healthcare unit of Tyco International Ltd., to promote Lap-Band. Allergan could face competition, though,regulators have cleared Realize, a stomach banding system from Johnson & Johnson.
Allergan’s also cooperating with a Food and Drug Administration request for documents relating to Botox. The subpoena relates to off-label usage of Botox for headaches and whether such usage was promoted without FDA approval.
Analysts have generally shrugged off Allergan’s recent FDA encounters because they haven’t involved Botox Cosmetic.
On the financial front, Allergan has said it expects its 2008 sales to come in at $4.4 billion to $4.6 billion.
The company expects profits of $777.1 million to $789.3 million. Analysts expect the drug maker to earn $792.4 million on sales of $4.6 billion.
Wall Street’s Take:
After some high-flying years, investors have fretted about Allergan’s medical cosmetic business amid a slowing economy, although the drug maker has expressed confidence that any consumer spending slowdown won’t affect it.
Allergan’s stock performance has cooled down,shares are off 11% so far this year.
A conservative first-quarter forecast earlier this year had analysts going to their tea leaves to figure out what was going on, but they ended up liking what they saw.
“This smells like the usual ‘under
promise, over deliver’ game that Allergan
has mastered,” said Elliot Wilbur, an
analyst with Oppenheimer & Co, in a client note.
,
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:
Multilingual executive drives sporty Aston-Martin car. Otherwise, frugal and unflashy, although his office was recently remodeled
