Allergan to sell two smaller businesses

NEW YORK: Drugmaker Allergan Plc said on Wednesday it plans to sell two of its smaller businesses, the women’s health and infectious disease units, as Chief Executive Brent Saunders works to end a steep slide in its share price over the last year.

Some investors and analysts had hoped for a more dramatic outcome from the company’s strategic review launched earlier this year. Allergan’s shares closed up 0.3 per cent. Saunders said that after the sales, the company would focus on four core businesses: medical aesthetics, central nervous system, eye care and gastrointestinal products.

“We have a very strong pipeline in all those areas. Having a focus on those four areas will make Allergan a more exciting company,” he said in an interview.

Allergan’s board has said it considered more drastic options, such as splitting the company or making acquisitions, after shares dropped more than 40 per cent from last July.

Saunders said the decision by the board to shed just those two businesses — responsible for only about 7 per cent of the company’s revenue, according to analysts — was unanimous.

Assuming a 30 per cent premium for the units, RBC Capital Markets analyst Randall Stanicky said the infectious disease business could be worth around $1.5 billion, while women’s health could be worth more than double that. — Reuters