Profits at Allergan subsidiary's Botox plant in Ireland slip 17% from a year ago

allergan irvine
Allergan is working to close a deal to sell itself to AbbVie, which will count on Botox for growth. (Allergan)

An Allergan subsidiary is attributing a 17% slide in pretax profits last year to higher costs at its Mayo, Ireland, facility that produces the company’s mainstay, anti-wrinkle treatment Botox.

The location is known as the “Botox capital of the world” as it is the only manufacturing plant in the Allergan system that produces the popular treatment. Higher costs were behind a 24% decline in operating profits, down from $220.5 million a year ago to $167.5 million, the Irish Times reported.

The bulk of revenues, at 83%, for Allergan Pharmaceuticals Ireland––a subsidiary of Allergan—come from Botox, which accounted for $2.4 billion of the company's $2.9 billion in revenues last year. Eye care drugs manufactured at the subsidiary's Westport, Ireland plant make up the remaining 17% of revenues.

Allergan Ireland's $2.9 billion in total revenues represents a 4.4% decline from revenues of $3.3 billion a year ago. The Westport facility employs 1,158 workers with a staff cost last year totaling $82.95 million.

RELATED: AbbVie may count on Allergan's Botox for post-merger growth. But what else?

The slide comes as AbbVie is on the cusp of acquiring Allergan early next year, the company said.

In its earnings report, Allergan said it expects to increase sales and pretax profits based on projected growth in key markets. Additionally, the company has a number of capital projects in place to expand production capacity and for rolling out new products.

Editor's Note: This story has been updated to reflect that the Westport, Ireland plant is owned by an Allergan subsidiary, Allergan Pharmaceuticals Ireland. A spelling mistake has also been corrected. 

Suggested Articles

GBA offers Brexit escape, Merck and Just - Evotech to share production space, GSK ointment line in Bangladesh may reopen and more news of note.

The real estate impresario that built a chain of upscale drug recovery facilities is now building a gene and cell therapy CDMO near Philadelphia.

Pfizer's Upjohn has reached a deal to exclusively supply generic Viagra to telehealth provider Roman as the company prepares to merge with Mylan.