Irvine drug maker Allergan Inc. is consolidating research and development in Europe in a bid to cut costs.
Allergan didn’t specifically say which of its European locations would be touched, though work would be going to plants in Britain and Ireland, as well as to its Irvine campus near John Wayne Airport.
Allergan has operations in Austria, Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden and Switzerland.
The drug maker said the restructuring would cost $50 million to $60 million before taxes. It said it expects the moves to reduce operating costs by up to $9 million yearly.
Savings from the cuts, Allergan said, would be reinvested into the business and could reduce the time it takes to bring a drug to market.
Company officials said that the change wasn’t going to affect its 2004 outlook, ongoing guidance or the size of its European sales force.
Consolidating research, according to Allergan, is consistent with its long-term strategic plan to focus resources on drugs that have what it calls “high-market potential.”
In a Business Journal interview last month, Dr. Scott Whitcup, Allergan’s research head, said that the drug maker is focused on targeting unmet medical needs, including eye diseases, skin diseases and other uses for Botox, its flagship neurotoxin.
