Allergan

Allergan Overview

Company Headquarters: Dublin, Ireland

Founded: 2013

Workforce: ~16,900

Company Working: Allergan is a leading global pharmaceutical company. The company is engaged in the manufacturing and commercialization of hyaluronic acid for medical products, devices, biologics, and surgical products for patients across the world. It operates through three business segments, namely US Specialized Therapeutics, US General Medicine, and International. The company sells its products primarily to the retailers and distributors including food store chains and national retail drug. The prime customers are hospitals, clinics, and government agencies as well as managed healthcare providers, such as health maintenance organizations and other institutions.

The company has operations in 100 countries. The US and Canada account for around 10% of the company’s revenue. The three prominent customers of the company are McKesson Corporation, which accounted for around 25% of the sales revenue; Cardinal Health, Inc with 23%; and AmerisourceBergen Corporation with 22% in 2018. In addition, the company has development and manufacturing centers of raw materials, intermediate ingredients, and active pharmaceutical ingredients. Its manufacturing plants are located in Ireland, the US, Brazil, Belgium, France, and Costa Rica.

Strategy

Allergan focuses on increasing its footprints globally by establishing its manufacturing, research and development, and commercial operations in various regions across the world. To increase sales and marketing, Allergan concentrates on targeted activities, that include direct-to-consumer advertising to raise consumer awareness about products. It also aims at engaging physicians and surgeons through its sales team and other programs to ensure they are fully informed about their products offer.

SWOT Analysis

Strengths

Wide distribution network
High customer satisfaction
Product innovation
Skilled workforce
Large customer base
Strong distribution network
Strong customer base
Well-developed distribution network
Strategic collaborations
Prominent presence in the global market
Strong research and development
Market leader in HA manufacturing
Product innovation, incorporating strong product portfolio of Juvederm hyaluronic acid series
Large customer base owing to continuous product approvals and launches
Wide distribution network with companies such as Cardinal Health, McKesson Corporation, and AmerisourceBergen Corporation
Strong acquisition record, including Elastagen Pty Ltd and Repros Therapeutics, Inc in 2018

Weaknesses

Supply-demand gap due to poor forecasting abilities
Continuous operating loss
Unstable collaborations and acquisitions
Poor forecasting of product demand
Expenditure on R&D is less in comparison to other key players
Unstable collaboration activities
Supply-demand gap due to inefficient forecasting
Mature product portfolio
Continuous operating loss, e.g. operating loss of USD 6,247.6 million in 2018, and USD 5,921.2 million in 2017
Divestitures of business, such as sales of few dermatology products to Almirall, S.A, can impact the revenue generation process
Limited focus on the developing as well as developed economies, other than the US. In 2018, the revenue generated internationally contributed approximately 22% of the total revenue
Low research & development expenditure
Supply-demand gap due to poor forecasting techniques
Low research and development expenditure

Opportunities

Collaboration with public sector institutions
Targeting new customers through online channels
Increasing mergers and acquisitions
Venturing in new markets due to public private partnerships
Developing innovative products
New customers through online channels
New product launches
Collaboration with public sector institutions can fetch the company long-term projects
Targeting new customers through online channels can open lucrative options for market expansion
Tie-ups with distributors throughout the world for increase in geographical revenue generation
Increasing mergers & acquisitions
Engaging customers through online channels
Expansion to new markets due to public private partnerships
New markets due to public private partnerships

Threats

Strict government regulations
Availability of counterfeit products
Fluctuations in foreign exchange rates
Counterfeit products
Fluctuation in currency rates
Increasing generic drugs acceptance
Threat of substitutes
Global economic slowdown
Availability of counterfeit products can decrease the preference rate of customers

Key Developments

Date	Approach	Development
September 2019	Product Approval	Allergan received the US Food and Drug Administration (FDA) approval for the use of Juvéderm VOLUMA XC, a hyaluronic acid gel dermal filler, with a TSK STERiGLIDE cannula for cheek augmentation to correct age-related volume deficit in the middle part of the face in adults over the age of 21.
April 2019	Launch	Allergan announced the launch of Juvéderm VOLUX in Monaco. It is HA-based, the innovative product used as facial filler for chin and jaw lines.
March 2019	Acquisition	Allergan acquired Envy Medical, Inc., a privately held company with proprietary technology in skin resurfacing. The acquisition enhanced the former’s best-in-class medical aesthetics portfolio.
January 2019	Expansion	Allergan announced the establishment of a research & development facility in the Kendall Square section of Cambridge, Massachusetts. Thus, through this, the company aims to expand its research facilities
September 2018	Expansion	Allergan announced plans to open its first medical aesthetics innovation center in Chengdu, China. Through this, the company plans to expand its foothold in the Chinese market.
February 2017	Acquisition	Allergan acquired LifeCell Corporation, a leading regenerative medicine company, thus expanding its product portfolio in the aesthetic and plastic surgery segment.
March 2017	Product Approval	Allergan received the FDA approval for Juvéderm Vollure XC used to reduce facial wrinkles and folds in adults over the age of 21.
July 2017	Clinical Trial Results Declaration	Allergan announced the results of a prespecified prospective pooled subgroup analysis from the two Phase 3 studies (IBS-3001 and IBS-3002), which evaluated the efficacy and safety of Viberzi to treat the irritable bowel syndrome with diarrhea (IBS-D), irrespective of the prior use of loperamide.
January 2017	Agreement	Allergan entered into a license agreement with Assembly Biosciences, Inc. for the worldwide rights to Assembly’s microbiome gastrointestinal (GI) development activities. With this agreement, Allergen received the worldwide rights to preclinical compounds ABI_M201 and ABI-M301, as well as two additional compounds to be identified by Assembly for irritable bowel syndrome.
–	Agreement	Allergan and AbbVie Inc. entered into a definitive transaction agreement under which AbbVie Inc. acquired Allergan in a cash and stock transaction for a transaction equity value of approximately USD 63 billion.
–	Expansion	Allergan announced the establishment of a research & development facility in the Kendall Square section of Cambridge, Massachusetts. Thus, through this, the company aims to expand its research facilities.
–	Launch	Allergan launched Spotlyte, an innovative digital hub of curated content designed to create awareness about medical aesthetic treatments.
–	Agreement	Allergan acquired Bonti, Inc., a privately-held clinical-stage biotechnology company focused on the development and commercialization of novel, fast-acting neurotoxin programs for aesthetic and therapeutic applications.
–	Acquisition	Allergan acquired ZELTIQ Aesthetics, Inc., a medical technology company. The company comprises a proprietary controlled-cooling fat-reducing treatment, CoolSculpting. The acquisition of ZELTIQ Aesthetics cost an approximate of USD 2.4 billion.
November 2019	Agreement	Allergan has teamed up with Exicure, a US-based clinical-stage biotechnology company, to discover treatments for hair loss disorders. Under this agreement, Exicure will receive USD 25 million from Allergan to apply Exicure’s spherical nucleic acid (SNA) technology for two collaborative programs.
June 2019	Agreement	Allergan and AbbVie Inc. entered into a definitive transaction agreement under which AbbVie Inc. will acquire Allergan in a cash and stock transaction for a transaction equity value of approximately USD 63 billion.
January 2019	Expansion	Allergan announced the establishment of a research & development facility in the Kendall Square section of Cambridge, Massachusetts. Through this, the company aims to expand its research facilities.
March 2019	Product Approval	Allergan received the US Food and Drug Administration (FDA) approval for using hyaluronic acid gel filler product, named JUVÉDERM VOLUMA XC. This product will be used for cheek augmentation that will correct age-related volume deficit in the mid-face in adults aged over 21.
October 2018	Product Approval	Allergan received approval by the US Food and Drug Administration (FDA) to treat the submandibular area through the CoolSculpting treatment.
June 2017	Acquisition	Allergan acquired Keller Medical, Inc. With this acquisition, the company gained control over Keller’s product portfolio.
April 2017	Acquisition	Allergan acquired Zeltiq Aesthetics, Inc. for USD 2,405.4 million to expand its product portfolio. Zeltiq is into development and commercialization of Coolsculpting products.
July 2016	–	Chugai and Galderma Announce Global License Agreement for Nemolizumab (CIM331), Novel Biologic for Skin Diseases. The primary aim of this agreement is to improve atopic dermatitis by breaking the itch-scratch cycle which has great expectation for nemolizumab.
April 2016	–	Galderma Announces U.S. Collaboration in Aesthetics with Mentor Worldwide, LLC by this Collaboration Mnetor and Galderma will provide huge products to healthcare professionals who have patients requiring products for facial injectable and breast enhancement.
January 2016	–	Maruho and Galderma to Join Forces in a Strategic Alliance in Japan. One of the major reasons of this strategic alliance is that galderma will permit maruho to additionally promote their products in japan in the field of dermatology.
December 2015	–	Galderma and ZELTIQ Announce U.S. Collaboration in Aesthetics. This collaboration between two of the fastest growing companies in aesthetics will provide healthcare professionals with beauty professionals and advanced technology for facial rejuvenation.
October 2019	Product Approval	Allergan received approval for Botox by the US Food and Drug Administration (FDA) to treat the lower limb spasticity in pediatric patients of age group 2 to 17