Allergan plc operates as a pharmaceutical company worldwide.
The company focuses on developing, manufacturing and commercializing branded pharmaceutical, device, biologic, surgical and regenerative medicine products for patients worldwide. The company markets a portfolio of major brands and products primarily focused on four key therapeutic areas, including medical aesthetics, eye care, central nervous system and gastroenterology.
The company engages in Open Science, a model of research and de...
Allergan plc operates as a pharmaceutical company worldwide.
The company focuses on developing, manufacturing and commercializing branded pharmaceutical, device, biologic, surgical and regenerative medicine products for patients worldwide. The company markets a portfolio of major brands and products primarily focused on four key therapeutic areas, including medical aesthetics, eye care, central nervous system and gastroenterology.
The company engages in Open Science, a model of research and development, which defines its approach to identifying and developing ideas for better patient care. The company has operations in approximately 100 countries. The company markets brand pharmaceutical products and medical devices, including aesthetic products, under various brand names.
Segments
The company operates through three segments: US Specialized Therapeutics, US General Medicine, and International.
US Specialized Therapeutics: This segment includes sales and expenses relating to branded products within the U.S., including Medical Aesthetics, Medical Dermatology through September 20, 2018, Eye Care and Neuroscience and Urology therapeutic products.
US General Medicine: This segment includes sales and expenses relating to branded products within the U.S. that do not fall into the US Specialized Therapeutics business units, including Central Nervous System, Gastrointestinal, Women’s Health, Anti-Infectives and Diversified Brands.
International: This segment includes sales and expenses relating to products sold outside the U.S.
Portfolio of Products
As of December 31, 2019, the company’s portfolio of products within the US Specialized Therapeutics, US General Medicine and International segments included products, such as Alloderm, Alphagan/Combigan, Armour Thyroid, Botox Cosmetics, Botox Therapeutics, Breast Implants, Bystolic/Byvalson, Carafate/Sulcrate, Coolsculpting, Juvederm Collection, Linzess/Constella, Lo Loestrin, Lumigan/Ganfort, Ozurdex, Restasis, Viibryd/Fetzima, Vraylar, and Zenpep.
The company offers its products for various therapeutic areas, including medical aesthetics, eye care, diversified brands, facial aesthetics, neuroscience and urology, plastic surgery, gastrointestinal, women's health, and central nervous system. The company’s portfolio of products also includes eye drops, including Optive and Refresh.
Strategy
The key elements of the company's strategy include internal development of differentiated and high-demand products, investing behind key marketed brands, establishment of strategic alliances and collaborations and acquisition of products and companies that complement its current business.
Customers
In US Specialized Therapeutics, US General Medicine and International operations, the company sells its brand and aesthetic products primarily to drug wholesalers, retailers and distributors, including national retail drug and food store chains, hospitals, clinics, mail order retailers, government agencies and managed healthcare providers, such as health maintenance organizations and other institutions. Certain medical aesthetic products and devices are also sold directly to physicians.
Sales to McKesson Corporation, Cardinal Health, Inc., and AmerisourceBergen Corporation accounted for 25%, 24%, and 22%, respectively of the company’s annual revenue for 2019.
Seasonality
Consistent with the United States pharmaceutical industry, the company’s business experiences seasonality, with the first quarter of each year (year ended December 31, 2019) being the lowest revenue quarter for its products. In addition, its aesthetics products, including its breast aesthetics and Botox cosmetic indications, have tended to be marginally higher during the second and fourth quarters, presumably in advance of the summer vacation and holiday seasons. Fluctuations of the company’s sales are also impacted by the effect of promotional activity, which cause non-seasonal variability in sales trends.
Government Regulation and Regulatory Matters
The company is subject to regulation by the federal government, principally the U.S. Food and Drug Administration (FDA) and by the U.S. Drug Enforcement Administration (DEA), Occupational Safety and Health Administration, and state government agencies, as well as by various regulatory agencies in foreign countries where its products or product candidates are being manufactured and/or marketed. The Federal Food, Drug and Cosmetic Act; the Controlled Substances Act; and other federal statutes and regulations govern or influence the testing, manufacturing, packing, labeling, storing, record keeping, safety, approval, advertising, promotion, sale, and distribution of the company’s products.
The company is subject to the periodic inspection of its facilities, procedures and operations and/or the testing of its products by the FDA, the DEA and other health authorities, which conduct periodic inspections to assess compliance with applicable regulations. In addition, in connection with its review of its applications for new products, the FDA conducts pre-approval and post-approval reviews and plant inspections to determine whether the company’s systems and processes comply with current Good Manufacturing Practices and other FDA regulations.
History
The company was founded in 1983. It was incorporated in Ireland in 2013. The company was formerly known as Actavis plc and changed its name to Allergan plc in 2015.
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