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Botox maker Allergan to cut 1,500 jobs

Monday, July 21 14:15:29

Allergan, which is fighting off a hostile bid from Valeant Pharmaceuticals and which employs 900 in Ireland, today announced 1,500 jobs cuts as part of a $475 million restructuring meant to boost profits over the next six years.

But the company did not announce any major acquisition or share-repurchase program, moves it had discussed as ways that might bolster its defenses against Valeant and Pershing Square Capital Management.

Allergan said the cost reductions, which are part of its efforts to convince investors that it is a better value as a stand-alone company, would help it deliver annual earnings growth of more than 20 percent between 2014 and 2019.

The 13 percent cut to global headcount will help deliver earnings per share of $5.74 to $5.80 in 2014 and $8.20 to $8.40 in 2015, Allergan said. The company had previously forecast a 2014 profit of $5.64 to $5.73 per share, with earnings growth of 20 percent to 25 percent in 2015.

Allergan shares rose 0.3 percent to $167.94 in premarket trading.

The company reported second-quarter earnings of $418 million, or $1.40 per share, compared with $361 million, or $1.22 per share, a year earlier.

Excluding special items, Allergan earned $1.51 per share. Analysts on average expected $1.44, according to Thomson Reuters I/B/E/S.

For more visit: www.businessworld.ie