Lately, there have been rumors that GlaxoSmithKline is eyeing Allergan for an acquisition deal. But The Street reports that cosmetic pharmaceuticals company is sizing up some buyouts of its own. The company is looking for deals that would augment its focus on cosmetics, specialty eye care, obesity treatment, urology or neurology, CEO David Pyott tells Bloomberg (as the Orange County Business Journal reports). "We are constantly looking at new opportunities," Pyott said. "We have well over a billion in the bank, and we could do a multibillion-dollar deal if it made sense."
Like many companies, Allergan is looking to cutback and diversify to remain competitive. Although the company increased revenues by a half-billion last year, the economic climate has taken its toll. Anticipating a continued decline is sales, the company cut 460 sales and marketing jobs February. As the OCBJ reports, Competitor Mentor Corp. was bought by Johnson & Johnson for $1.1 billion in January and Medicis Pharmaceuticals is working with France's Ipsen on a new Botox competitor, Reloxin.
Pyott declined to address reports that there's an acquisition deal in the works, but said the company has not ruled out the possibility of a sale "Somebody would have to come out with a very compelling proposition," Pyott explained. The company's shares rose more than 13 percent in trading Tuesday amid the takeover rumors.
- see OCBJ article for more