Espicom views Allergan's performance, products, pipeline and potential

Allergan, with headquarters in Irvine, California, USA, is a global specialty pharmaceutical company that develops and commercializes products for neurosciences, ophthalmology, medical dermatology, medical esthetics, obesity intervention, urologics and other specialty markets. In addition to its discovery-to-development research programs, the company has global marketing and sales capabilities in over 100 countries, notes a new report from Espicom Business Intelligence.

Allergan has chosen a distinct company strategy, focusing strongly on the development and marketing of speciality products. This tactic seems to have proved effective, with Allergan achieving a market leadership position in the area of neuromodulators with Botox, and in ophthalmology with its range of eye care therapeutics. In 2007, the firm announced the takeover of Esprit Pharma Holding, which traditionally focuses on the field of urology, signalling a new area of focus for Allergan. The acquisition of Inamed should ensure
Allergan maintains a strong presence in the field of medical esthetics as well.
Allergan, with headquarters in Irvine, California, USA, is a global specialty pharmaceutical company that develops and commercializes products for neurosciences, ophthalmology, medical dermatology, medical esthetics, obesity intervention, urologics and other specialty markets. In addition to its discovery-to-development research programs, the company has global marketing and sales capabilities in over 100 countries, notes a new report from Espicom Business Intelligence.

Botox competition coming?

Botox is the company's main growth driver, accounting for over a third of company revenue with sales in excess of $1.3 billion. Allergan's strong dependence on one key product may seem a concern, however, the company continues to invest significantly in Botox, with four line extensions currently in the R&D pipeline, further expanding the therapeutic market presence of the product. At present, Botox has few competitors in its marketed indications, however, Solstice Neurosciences is developing Myobloc/Neurobloc (botulinum toxin type B), which has been shown in trials to be as effective as Botox in certain indications. The launch of Myobloc may form the first significant threat to Allergan's Botox franchise. Indeed, performance thus far in 2009 suggests that fiscal 2009 could be the first year of sales decline for Botox and Allergan will need to rapidly develop new medicinal indications for the product in order to see off its emerging competitors.

In recent years, Allergan's level of R&D expenditure has fluctuated significantly. In 2003, the company invested 43.5% of its revenue in R&D. In fiscal 2008, this ratio has fallen to 18.1%, however, it remains higher than the market average of approximately 14%. Allergan's research remains highly focused and concentrated mainly into three key therapeutic areas, says Espicom. As already mentioned, much of the firm's research efforts are centered on maximizing the value of Botox, however, the company has also nurtured several novel candidate compounds which may form the basis for long-term growth. Ophthalmology remains the key area of research, and the company's three most promising projects, Panzem (2-methoxyestradiol), diquafosol and Posurdex (a novel formulation of dexamethasone), all fall into this field. Furthermore, the company has several broad research agreements in place, centered mainly on ophthalmology, pain and the treatment of neurodegenerative diseases.