AbbVie has unveiled plans to create a separate aesthetics division following its $63bn acquisition of Allergan last June.
Allergan’s leading medical aesthetics business, which most notably includes cosmetic Botox, will now operate as a separate unit – aptly named Allergan Aesthetics.
According to a statement from AbbVie, the new division will operate with its own research and development functions.
It will be led by Allergan’s current senior vice president, US medical aesthetics Carrie Strom, who will go on to assume the new roles of senior vice president of AbbVie and president of Global Allergan Aesthetics.
The aesthetic products included in this separate division will be cosmetic Botox, the Juvaderm collection of dermal fillers and Coolsculpting body contouring, among others.
Allergan’s other speciality and eye care businesses will be incorporated into the existing AbbVie organisation, which comprises of medical Botox, central nervous system, women’s health and gastrointestinal diseases.
“We are enthusiastic about the potential of the new AbbVie and continue to make significant progress on completing our acquisition of Allergan,” said Richard Gonzalez (pictured left), CEO at AbbVie.
“This announcement marks an important step forward in our plans to create the integrated global company. We are fortunate to have a leadership team with a deep breadth of both industry and company experience and we are excited to welcome the new Allergan leaders to our company,” he added.
Last November, AbbVie sold $30bn worth of bonds to help fund its acquisition of Allergan, which it expects to close in the first-quarter of 2020.
It used net proceeds from the sale to fund a portion of the cash consideration due to Allergan shareholders in connection with the acquisition, and to pay related fees and expenses.
Ahead of the upcoming patent loss of AbbVie’s ageing blockbuster Humira, the Allergan acquisition and now the subsequent division of its aesthetics business will give AbbVie more space to focus on its core products.
This includes psoriasis treatment Skyrizi, Rinvoq, medical Botox, and cancer treatments Imbruvica and Veclexta.
The merger has however faced public opposition from a number of advocacy groups and unions, who urged the Federal Trade Commission to consider blocking the takeover.
In a letter to the FTC, the group presented concerns that the merger could lead to the combined AbbVie/Allergan company having too large of a market share in certain therapy areas, and also could cause high drug prices in the US to continue or worsen.
The FTC has not shared any antitrust concerns, however, so it looks like the deal is primed to close over the next few months.