- Allergan is planning to sell its women’s health business and infectious disease business, Allergan CEO Brent Saunders confirmed Wednesday.
- Investors have been unhappy with Allergan’s stock performance over the last year, and some would like to see the pharma company explore splitting up.
- Allergan’s stock fell as much as 2% on Wednesday morning.
Allergan is planning to sell off two businesses it considers non-core to the company, Allergan CEO Brent Saunders confirmed Wednesday.
These include its women’s health and infectious disease businesses.
Saunders said at the Bernstein Annual Strategic Decisions conference that the board wanted Allergan to focus on Allergan’s four “core” businesses, which are eye care, aesthetics, diseases of the central nervous system, and gastrointestinal conditions.
Investors have been unhappy with the Botox-maker’s stock performance over the last year, and some have expressed interest in seeing the pharma company explore splitting up, perhaps even further than divesting some of its non-core businesses.
Saunders acknowledged in the company’s first-quarter earnings call in April the disconnect between how the company has performed and its stock price. As part of that, the company conducted a review of strategic options, which ultimately led to the decision to divest the women’s health and infectious disease businesses.
Allergan’s stock dropped as much as 2% on Wednesday morning.