Allergan to shutter Goleta facility, cut 300 jobs
Allergan will close its Goleta facility and eliminate about 300 positions there as part of a broader cost tightening effort as the Irvine company fends off a hostile takeover attempt.
Allergan makes Botox and other cosmetic drugs and devices. The company became a major South Coast employer in 2005 when it bought breast implant maker Inamed in a $3 billion deal.
Allergan faces a $53 billion takeover bid from Canadian Valeant Pharmaceuticals International and hedge fund manager Bill Ackman.
Valeant proposed to Allergan shareholders that it would cut Allergan’s workforce and refocus drug research on more profitable efforts. During its quarterly earnings announcement, Allergan disclosed similar moves July 21 in a bid to persuade shareholders it could make the proposed reforms on its own.
Allergan said that it will eliminate 13 percent of its global workforce, or about 1,500 jobs. It will also cut 250 vacant positions. The moves are expected to generate savings of about $475 million starting next year.
Allergan spokeswoman Bonnie Jacobs confirmed that the company plans to close its Goleta facility as part of “internal cost and workforce reductions in order to continue to deliver high value to our stockholders.”
Allergan said diluted earnings per share for the quarter were $1.37, up from $1.17 a year earlier. Net product sales were up 15.9 percent to $1.8 billion compared to a year earlier.
Allergan shares were trading at about $172 in midday trading July 22, up from a $171.14 close the previous day.