Allergan plans restructuring

Allergan CEO Brent Sanders yesterday said at the Barclay Global Healthcare Conference that the group’s financial performances do reflect the recently-implemented strategy developed together with his team, yet the company’s share price is still too low and does not reflect the actual group’s value. Sanders and his new CFO Matt Walsh are now planning to explore new options, the most likely being splitting the group in two, as many investors have been asking for a long time, many people familiar with the matter say. Many shareholders, indeed, are pressuring Allergan’s management to reorganize the group into a structure similar to Pfizer’s. The US-based company has separated its prescription drugs still under patent protection from the mature ones. Importantly, Allergan last year announced a job cut plan affecting 1,400 employees, aimed to save $300-400m. Sanders some weeks ago authorized a $2bn-worth share repurchase program.

(Source: Benzinga)