Allergan thrives with Botox but is unloading Lap-Band

Drug maker Allergan posted record sales in 2012, with wrinkle remover Botox its top seller, but plans to sell its Lap-Band unit amid falling sales and patient deaths.

This is the company that makes Botox. The wrinkle-erasing drug is Allergan’s top-selling product with sales expected to reach $2 billion in 2013.

But there’s more to Allergan than wrinkle medicine. The self-described “multi-specialty healthcare company” also sells breast implants, a prescription drug that enhances eyelashes, a line of ophthalmic pharmaceuticals and, at least for now, the Lap-Band weight-loss device.  

The company reported record sales of $5.8 billion in 2012 and expects robust sales again this year $5.9 billion to $6.2 billion. Its stock hit an all-time high of $109.31 on Feb. 19.   Allergan decided to unload its “obesity intervention” division primarily the Lap-Band amid declining sales and patient deaths. The company expects to complete the sale by the end of June.

Revenue will grow this year even without the Lap-Band, said David E.I. Pyott, the company’s board chairman, president and chief executive. Allergan’s weight-loss division had $160 million in sales in 2012 less than 3% of its total revenue.

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Source: By Stuart Pfeifer for the Los Angeles Times on March 3, 2013 at http://www.chicagotribune.com/business/la-fi-stock-spotlight-allergan-20130304,0,5606328.story