Advertisement

Allergan said to be exploring split into two businesses - Bloomberg

(Reuters) - Botox-maker Allergan Plc is exploring a breakup of the company into two businesses, eight months after forming a multi-billion dollar pharmaceutical company through a merger with Actavis Plc, Bloomberg reported on Friday, citing sources. Allergan's shares were up 3.8 percent in extended trading after closing at $308.21 on Friday. Bloomberg cited people familiar with matter as saying Allergan aimed to keep its branded-drugs business and spin off or sell parts or all of its generic business. 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 discussions were still taking place and there is no certainty that a spin-off or breakup will occur, sources told Bloomberg. 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. (Reporting by Amrutha Penumudi in Bengaluru)