Allergan plc is an American, Irish-domiciled
pharmaceutical
A medication (also called medicament, medicine, pharmaceutical drug, medicinal drug or simply drug) is a drug used to diagnose, cure, treat, or prevent disease. Drug therapy (pharmacotherapy) is an important part of the medical field and re ...
company that acquires, develops, manufactures and markets brand name drugs and medical devices in the areas of medical aesthetics, eye care, central nervous system, and gastroenterology.
The company is the maker of
Botox
Botulinum toxin, or botulinum neurotoxin (BoNT), is a neurotoxic protein produced by the bacterium ''Clostridium botulinum'' and related species. It prevents the release of the neurotransmitter acetylcholine from axon endings at the neurom ...
.
Allergan plc was formed in March 2015 when Irish–registered
Actavis plc
Actavis Generics (formerly known as Watson Pharmaceuticals and Actavis plc, prior to the acquisition of Irish-based Allergan Inc) is a global pharmaceutical company focused on acquiring, developing, manufacturing and marketing branded pharmaceuti ...
acquired U.S.–registered
Allergan, Inc.
Allergan, Inc. was an American global pharmaceutical company focused on eye care, neurosciences, medical dermatology, medical aesthetics, breast enhancement, obesity intervention and urologics. Allergan, Inc. was formed in 1948, incorporated in ...
, and assumed the Allergan name.
In 2016, Allergan sold its generic business, Actavis, to
Teva Pharmaceuticals
Teva Pharmaceutical Industries Ltd. (also known as Teva Pharmaceuticals) is an Israeli multinational pharmaceutical company with headquarters in Tel Aviv, Israel. It specializes primarily in generic drugs, but other business interests include ...
for $40.5 billion.
In June 2019, U.S. pharmaceutical company
AbbVie
AbbVie is an American publicly traded biopharmaceutical company founded in 2013. It originated as a spin-off of Abbott Laboratories.
History
On October 19, 2011, Abbott Laboratories announced its plan to separate into two publicly traded compan ...
announced it had reached an agreement to acquire Allergan for $63 billion. The merged company would be domiciled in the U.S. for tax purposes.
History
Allergan plc was created from the 2015 merger and Irish
corporate tax inversion
A tax inversion or corporate tax inversion is a form of tax avoidance where a corporation restructures so that the current parent is replaced by a foreign parent, and the original parent company becomes a subsidiary of the foreign parent, thus mov ...
of two companies, Irish-based
Actavis plc
Actavis Generics (formerly known as Watson Pharmaceuticals and Actavis plc, prior to the acquisition of Irish-based Allergan Inc) is a global pharmaceutical company focused on acquiring, developing, manufacturing and marketing branded pharmaceuti ...
and U.S.-based Allergan, Inc.
Allergan, Inc.
![Allergan headquarters](https://upload.wikimedia.org/wikipedia/commons/c/c0/Allergan_headquarters.jpg)
In 1948, pharmacist Gavin S. Herbert founded
Allergan Pharmaceuticals, Inc.
In 1970, Allergan, Inc. became a
public company
A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange (l ...
via an
initial public offering
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...
.
In 1977, Allergan announced plans to build a factory in Westport, Ireland.
In 1980, it was acquired by
SmithKline Corporation for $259 million and was later spun-off by SmithKline Beecham in 1989. In 1989, Allergan opened a manufacturing plant in
Waco, Texas
Waco ( ) is the county seat of McLennan County, Texas, United States. It is situated along the Brazos River and I-35, halfway between Dallas and Austin. The city had a 2020 population of 138,486, making it the 22nd-most populous city in the ...
to manufacture eye care products.
In 1991, Allergan acquired the company Oculinum which manufactured products for eye muscle disorders.
Following the acquisition, the product was renamed Botox.
In 1996, Allergan received FDA approval for
Alphagan ophthalmic solution for open-angle glaucoma and ocular hypertension.
In 1998, Allergan established The Allergan Foundation, a private US-based charitable foundation.
In 2005, Allergan acquired Inamed which had a licensing agreement with Corneal Group Laboratoires for Juvederm products.
In 2006, Allergan gained rights to Juvederm products.
Actavis plc
In the spring of 1983, colleagues
Allen Chao
Allen Y. Chao is a Taiwanese-American businessman who founded Watson Pharmaceuticals and served as chief executive officer from 1984 to 2008 and chairman.
Born in Shanghai, he spent his childhood in Taiwan. Chao went to Taipei Medical College, w ...
and David Hsia formed Watson Pharmaceuticals, a drug development in
Libertyville, Illinois
Libertyville is a village in Lake County, Illinois, United States, and a northern suburb of Chicago. It is located west of Lake Michigan on the Des Plaines River. The 2020 census population was 20,579. It is part of Libertyville Township, Lake ...
. In late fall of 1983, the company moved to
Corona, California
Corona (Spanish for "Crown") is a city in Riverside County, California, United States. At the 2020 census, the city had a population of 157,136, up from 152,374 at the 2010 census. The cities of Norco and Riverside lie to the north and north ...
and began to develop and manufacture generic pharmaceuticals.
In February 1993, the company became a
public company
A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange (l ...
via an
initial public offering
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...
.
In 2011, the company moved its corporate headquarters from
Corona, California
Corona (Spanish for "Crown") is a city in Riverside County, California, United States. At the 2020 census, the city had a population of 157,136, up from 152,374 at the 2010 census. The cities of Norco and Riverside lie to the north and north ...
to
Parsippany-Troy Hills, New Jersey. On October 31, 2012, Watson acquired Actavis for and took the Actavis name. In 2013, Actavis acquired Irish–registered
Warner Chilcott
Warner Chilcott (formerly Galen) was a company in the pharmaceutical industry based in Rockaway, New Jersey. It was primarily focused on women’s healthcare and dermatology. On October 1, 2013, the company was acquired by Actavis (now Allergan).
...
for $5 billion and used the transaction to execute a
corporate tax inversion
A tax inversion or corporate tax inversion is a form of tax avoidance where a corporation restructures so that the current parent is replaced by a foreign parent, and the original parent company becomes a subsidiary of the foreign parent, thus mov ...
to Ireland. In 2014, Actavis acquired Forest Laboratories for $25 billion.
Acquisition by Actavis plc (2015–2019)
![Allergan Headquarters in Ireland (Clonsaugh Park, Coolock, Dublin)](https://upload.wikimedia.org/wikipedia/commons/a/a8/Allergan_Headquarters_in_Ireland_%28Clonsaugh_Park%2C_Coolock%2C_Dublin%29.jpg)
In 2015, Irish–based Actavis plc acquired U.S.–based
Allergan, Inc.
Allergan, Inc. was an American global pharmaceutical company focused on eye care, neurosciences, medical dermatology, medical aesthetics, breast enhancement, obesity intervention and urologics. Allergan, Inc. was formed in 1948, incorporated in ...
for $70 billion, and in effect redomiciled Allergan to Ireland in a corporate tax inversion.
Actavis CEO Brent Saunders became the CEO of the combined company. In June 2015, the company took the Allergan name. At the time, over 85% of the combined sales of the post-merger Allergan plc were from the U.S. healthcare system.
As of 2020, the company operated four facilities in Ireland.
2015
On July 7, 2015, the company acquired the rights to the late stage
CGRP
Calcitonin gene-related peptide (CGRP) is a member of the calcitonin family of peptides consisting of calcitonin, amylin, adrenomedullin, adrenomedullin 2 ( intermedin) and calcitonin‑receptor‑stimulating peptide. Calcitonin is mainly produc ...
migraine
Migraine (, ) is a common neurological disorder characterized by recurrent headaches. Typically, the associated headache affects one side of the head, is pulsating in nature, may be moderate to severe in intensity, and could last from a few hou ...
portfolio of
Merck & Co
Merck & Co., Inc. is an American multinational pharmaceutical company headquartered in Rahway, New Jersey, and is named for Merck Group, founded in Germany in 1668, of whom it was once the American arm. The company does business as Merck Sharp ...
, as well as two experimental drugs for an upfront payment of $250 million. Later that summer, the company acquired Oculeve for $125 million and Naurex for an upfront payment of $560 million. In October 2015, the company acquired AqueSys, developer of ocular implants for an initial payment of $300 million, along with Kythera Biopharmaceuticals, a company focused on the medical aesthetics market, for $2.1 billion.
In late 2015, the company announced the acquisition of Northwood Medical Innovation, the developer of
earFold. On November 25, 2015, the company announced it would partner with Rugen Therapeutic to develop new therapies for
autism spectrum disorder
The autism spectrum, often referred to as just autism or in the context of a professional diagnosis autism spectrum disorder (ASD) or autism spectrum condition (ASC), is a neurodevelopmental disorder, neurodevelopmental condition (or conditions) ...
and
obsessive compulsive disorder
Obsession may refer to:
Psychology
* Celebrity worship syndrome, obsessive addictive disorder to a celebrity's personal and professional life
* Fixation (psychology), a persistent attachment to an object or idea
* Idée fixe (psychology), a preo ...
.
Abandon Merger with Pfizer
On November 23, 2015, Allergan and
Pfizer
Pfizer Inc. ( ) is an American multinational pharmaceutical and biotechnology corporation headquartered on 42nd Street in Manhattan, New York City. The company was established in 1849 in New York by two German entrepreneurs, Charles Pfizer ...
announced their intention to merge in a $160 billion transaction. On April 5, 2016, after the Obama administration announced its plan to ban
tax inversion
A tax inversion or corporate tax inversion is a form of tax avoidance where a corporation restructures so that the current parent is replaced by a foreign parent, and the original parent company becomes a subsidiary of the foreign parent, thus mov ...
s, Pfizer terminated the acquisition and paid Allergan a $150 million
breakup fee A breakup fee (sometimes called a termination fee) is a penalty set in takeover agreements, to be paid if the target backs out of a deal (usually because it has decided instead to accept a more attractive offer). The breakup fee is ostensibly to com ...
.
2016
In April 2016, the company announced it would partner with Heptares Therapeutics to develop a subtype-selective
muscarinic agonist
A muscarinic agonist is an agent that activates the activity of the muscarinic acetylcholine receptor. The muscarinic receptor has different subtypes, labelled M1-M5, allowing for further differentiation.
Clinical significance
M1
M1-type musca ...
s for
Alzheimer's disease
Alzheimer's disease (AD) is a neurodegeneration, neurodegenerative disease that usually starts slowly and progressively worsens. It is the cause of 60–70% of cases of dementia. The most common early symptom is difficulty in short-term me ...
and announced the acquisition of Topokine Therapeutics, gaining the phase IIb/III compound XAF5 - a treatment for
dermatochalasis
Dermatochalasis is a medical condition, defined as an excess of skin in the upper or lower eyelid, also known as "baggy eyes." It may be either an acquired or a congenital condition. It is generally treated with blepharoplasty.
Presentation Ass ...
.
In August 2016, Allergan plc sold its
generic drug
A generic drug is a pharmaceutical drug that contains the same chemical substance as a drug that was originally protected by chemical patents. Generic drugs are allowed for sale after the patents on the original drugs expire. Because the active ch ...
s business to
Teva Pharmaceutical Industries
Teva Pharmaceutical Industries Ltd. (also known as Teva Pharmaceuticals) is an Israeli multinational pharmaceutical company with headquarters in Tel Aviv, Israel. It specializes primarily in generic drugs, but other business interests include ...
in a $40.5 billion deal and announced the acquisition of ForSight VISION5 for more than $95 million.
In September 2016, CEO Saunders announced what he called a social contract to limit prices on the company's medications. That same month, the company acquired RetroSense Therapeutics for more than $60 million, announced the acquisition of Tobira Therapeutics for approximately $1.7 billion and, a day later, the acquisition of Akarna Therapeutics for $50 million.
In October 2016, the company sold Anda, its generic drug distribution business, to Teva for $500 million
and acquired Vitae Pharmaceuticals, focused on dermatology treatments, for $639 million.
That same month, the company announced it would acquire Motus Therapeutics, a developer of treatments for gastrointestinal disorders, for $200 million. On November 22, 2016, the company acquired Chase Pharmaceuticals for $125 million.
2017-2020
In 2017, the company acquired LifeCell, a specialist in regenerative medicine, for $2.9 billion and Zeltique Aesthetics, maker of CoolSculpting, for $2.4 billion.
On June 7, the company announced the acquisition of Keller Medical, a company that manufactures devices for use during
breast augmentation
Breast augmentation and augmentation mammoplasty is a cosmetic surgery technique using breast-implants and fat-graft mammoplasty techniques to increase the size, change the shape, and alter the texture of the breasts. Augmentation mammoplasty is ...
surgery. On December 12, the company announced the acquisition of
Repros Therapeutics
Repros Therapeutics Inc. (), was a US-based development stage biopharmaceutical company headquartered in The Woodlands, Texas. Founded in 1987 as Zonagen, it focused on the development of oral small molecule drugs to address major unmet medical n ...
, a developer of drugs for
reproductive system disease A reproductive system disease is any disease of the reproductive system.
Types
Infections
Reproductive tract infection (RTI) are infections that affect the reproductive tract, which is part of the Reproductive System. For females, reproductive tra ...
s.
In September 2018, Allergan acquired the aesthetic company, Bonti, for $195 million.
In March 2019, the company acquired Envy Medical, Inc. As of 2019, Allergan's Botox product had annual sales of nearly $4 billion.
In 2018, along with several other drug manufacturers and distributors, the company was sued by several municipalities and states in the U.S. due to the manufacture of
opioid
Opioids are substances that act on opioid receptors to produce morphine-like effects. Medically they are primarily used for pain relief, including anesthesia. Other medical uses include suppression of diarrhea, replacement therapy for opioid us ...
s, which have been abused in what has been referred to as the
opioid epidemic
The opioid epidemic, also referred to as the opioid crisis, is the rapid increase in the overuse, misuse/abuse, and overdose deaths attributed either in part or in whole to the class of drugs opiates/opioids since the 1990s. It includes the sign ...
.
Acquisition by AbbVie Inc. (2019-present)
In June 2019, U.S. pharmaceutical company
AbbVie
AbbVie is an American publicly traded biopharmaceutical company founded in 2013. It originated as a spin-off of Abbott Laboratories.
History
On October 19, 2011, Abbott Laboratories announced its plan to separate into two publicly traded compan ...
announced it had reached an agreement to acquire Allergan for $63 billion,
which would return Allergan to the U.S. for tax purposes.
On the announcement of the transaction, Abbvie disclosed that its 2019 net effective tax rate was 9%, but that post the acquisition, the Group's effective tax rate would rise to 13%. The merger is expected to close in 2020.
On May 8, 2020, AbbVie completed its acquisition of Allergan.
Acquisition history
Products
Allergan acquires, develops, manufactures and markets branded products in four therapeutic areas: medical aesthetics, eye care, central nervous system, and gastroenterology. The company manufactures several pharmaceutical products including Botox (
botulinum toxin
Botulinum toxin, or botulinum neurotoxin (BoNT), is a neurotoxic protein produced by the bacterium ''Clostridium botulinum'' and related species. It prevents the release of the neurotransmitter acetylcholine from axon endings at the neuromusc ...
), Juvederm (
injectable filler
Injectable filler (injectable cosmetic filler, injectable facial filler) is a soft tissue filler injected into the skin at different depths to help fill in facial wrinkles, provide facial volume, and augment facial features: restoring a smoother ap ...
), CoolSculpting (
Cryolipolysis
Fat removal procedures are used mostly in Plastic surgery#Cosmetic surgery procedures, cosmetic surgery with the intention of removing unwanted adipose tissue. The procedure may be invasive, as with liposuction, or noninvasive using laser therapy, ...
), Alphagan (brimonidine), Vraylar (cariprazine HCI), Linzess (
linaclotide
Linaclotide, (sold under the brand name Linzess in the US and Mexico, and as Constella elsewhere) is a drug used to treat irritable bowel syndrome with constipation and chronic constipation with no known cause. For label updates seFDA index page ...
),
and Ubrelvy (
ubrogepant
Ubrogepant, sold under the brand name Ubrelvy, is a medication used for the acute (immediate) treatment of migraine with or without aura (a sensory phenomenon or visual disturbance) in adults. It is not indicated for the preventive treatment of ...
).
See also
*
*
The St. Regis Mohawk Tribe and Restasis patent
*
Corporate tax inversion
A tax inversion or corporate tax inversion is a form of tax avoidance where a corporation restructures so that the current parent is replaced by a foreign parent, and the original parent company becomes a subsidiary of the foreign parent, thus mov ...
*
Ireland as a tax haven
Ireland has been labelled as a tax haven or corporate tax haven in multiple financial reports, an allegation which the state has rejected in response. Ireland is on all academic " tax haven lists", including the , and tax NGOs. Ireland does no ...
References
External links
*
{{authority control
AbbVie
Companies formerly listed on the New York Stock Exchange
Pharmaceutical companies of Ireland
Manufacturing companies based in Dublin (city)
Pharmaceutical companies established in 2015
Irish companies established in 2015
Tax inversions
2020 mergers and acquisitions
Irish subsidiaries of foreign companies