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.
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.