Allergan Plans To Sell Women’s Health, Infectious Disease Businesses
Allergan said it plans to sell its women’s health and infectious disease businesses following a strategic review and will focus on four main therapeutic areas (medical aesthetics, central nervous system, eye care, and gastrointestinal). Allergan Chief Executive Officer Brent Saunders made the announcement at a May 30, 2018 investors’ conference in New York.
Saunders says both businesses are profitable with the infectious disease business having top-line in the $200-million range and the women’s health business marking in the $1-billion range. “We will not sell those businesses unless we get the intrinsic value that we believe they are worth,” Saunders said in presenting at the investors’ conference. “…There is no undue pressure to sell them for a bargain, basement price. We think they are both great businesses. Both have a lot of talented people in them. Both have growth. Both have pipeline. And so we want to make sure that we think about this in a very thoughtful and careful way.”
The proceeds from any sale of the business will be used for debt reduction and share buybacks. “The proceeds from any sale will be balanced between debt reduction…as well as share buy backs to make sure that we minimize any potential dilution,” Saunders said