2AllerganAnalysis of Allergan’s Market and Business Data: Final ProjectPharmaceuticals have become an essential source for health care and cosmetics as technology and new developments are consistently on the rise. Globally the pharmaceutical market created $1,204.8 billion in revenue in 2018. The United States sustains 45 percent of the global pharmaceutical market. There are numerous top pharmaceutical corporations contributing to this accomplishment; among those corporations is Allergan plc. Allergan is one of the world’s largest corporations, selling products in over 100 countries with continual expansion to other countries. Along with supplying the products, Allergan Inc. also develops and markets products to treat a range of illnesses and cosmetic products to enhanceone’s appearance. Allergan originated in Los Angeles California in 1948. Gavin S. Herbert Sr., a business owner, and Stanley Bly, a chemist, collaborated to create Allergans first product, an eye antihistamine called Allergan. The pair and the son of Herbert Sr., Gavin Herbert Jr. continued to produce goods to keep the company afloat. In 1953, Allergan suffered due to the death of their chemist, Stanley Bly and the draft of Herbert Jr. to the Navy. With the assistance of John Biles, an associate professor at the University of Southern California’s School of Pharmacy, the company continued its success by reformulating its products. Later within the decade, Allergan took on another partner, Jack Browning, who assisted Allergan with launching its first marketing plan. By 1960, the company was worth a million dollars and it expanded its plant to a 30,000 square foot area in Santa Ana, California. In 1997, the demand for Botox was so high, Allergan ran out of its supply which caused panic for those who used the treatment on a regular monthly basis for cosmetic reasons. It wasn’t until 2002 the Food and Drug Administration approved Botox for cosmetic use. In 2017, Botox created $2.2 billion in revenue for Allergan. This
3Allergananalysis will provide a recommendation based on historical information provided in the pharmaceutical market and in Allergans financial documentation. Despite Allergans success in the earlier years, reviewing the company’s financial statements, the trend in demand between 2005 to 2019, there has shown to be a decrease in the company’s growth. The dramatic decrease began in 2013 through 2015 due to the demand changes for their products after their generic products were sold to focus their funds and expertise on creating brand name products.In 2015, Allergan began to fall to its competitor, Valeant Pharmaceuticals Inc. and refused to sell its company to Valeant because of its plan to severely cut the cost of Allergans products. The Valeant-Allergan battle came to an end when Actavis, a global pharmaceutical company, purchased Allergan in November of 2014 for $66 billion and prevented its failure.