Allergan said to be exploring split into two businesses – source

By Greg Roumeliotis

(Reuters) – Allergan Plc is considering a breakup of the company into two businesses, a person familiar with the matter told Reuters on Friday.

Allergan is considering keeping its branded drugs business but spinning off or selling parts or all of its generics business, according to the person who asked not to be identified because the deliberations are confidential.

Just eight months ago the Botox-maker formed a multibillion dollar pharmaceutical company through a merger with Actavis Plc.

Allergan’s shares were up 4.7 percent in extended trading after closing at $308.21 on Friday.

Allergan’s branded-drugs business makes products such as Botox and Alzheimer’s drug Namenda, while its generics business makes up about a third of the company’s total revenue.

The news was first reported by Bloomberg, which said that the discussions were still taking place and there was no certainty that a spin-off or breakup would occur.

Representatives for Allergan could not be reached immediately for comment.

Actavis outbid Canadian drugmaker Valeant Pharmaceuticals International Inc and activist investor William Ackman in November to form a $121 billion pharmaceutical company with Allergan.

(Additional reporting by Amrutha Penumudi in Bengaluru; Editing by Ken Wills)

Allergan said to be exploring split into two businesses – source