Allergan eyes acquisitions despite takeover rumours

Allergan is considering purchases to strengthen its cosmetics, and other business segments, at a time when the company is itself at the heart of takeover rumours.

In an interview with Bloomberg, Allergan head David Pyott said the company is always seeking new opportunities.

“We have well over a billion in the bank, and we could do a multi-billion dollar deal if it made sense,” Bloomberg quoted him as saying.

Focus on cosmetics

He cited cosmetics, specialty eye care, obesity treatment, urology and neurology as areas in which the company would like to strengthen its position.

The California-based company has recently bolstered its cosmetics portfolio with Latisse, an eyelash enhancer product.

Back in December the company said it anticipated sales in excess of $500m a year from the product.

Latisse is based on a drug originally developed for the treatment of glaucoma and it will be the first FDA approved product of its kind on the market.

In addition, 2008 saw the fruits of a partnership with cosmetics company Clinique as their skin care line designed for use before and after cosmetics procedures hit physician’s shelves.

The range is designed to tap into the increasing number of people undergoing non-surgical cosmetic procedures and the popularity of the physician’s office distribution channel.

However, Allergan’s signature product - and the leader of its cosmetics pack - Botox, which has dominated the market for some time, will start feeling the pressure from Ipsen and Medici’s Reloxin if it gains FDA approval, as is expected.

Did not confirm takeover rumours

In the Bloomberg interview, Pyott did not rule out any takeover or sale of the company but said any bid would have to be particularly impressive.

“Somebody would have to come out with a very compelling position,” he said.

Rumours earlier in the week suggested that GlaxoSmithKline was eyeing up the business although neither company agreed to comment on the speculation.