Net income of Allergan plc 2011-2019

Allergan reported a net loss of approximately 5.3 billion U.S. dollars in 2019, generating a loss for the third successive year. The net income of the global pharmaceutical company peaked in 2016 when it posted profits that exceeded 14.5 billion U.S. dollars.

Allergan’s recent struggles continue

Between 2018 and 2019, Allergan’s net loss worsened despite generating record revenues and reducing operating costs by around 1.5 billion U.S. dollars. There are concerns that the company has become too reliant on its top specialty product: Botox. In the United States, sales of Botox brand products generated around 2.7 billion U.S. dollars in 2019, which was around 1.6 billion U.S. dollars more than any other medication manufactured by Allergan.

Takeover could help transform companies

AbbVie completed the acquisition of Allergan in a deal valued at 63 billion U.S. dollars in May 2020. Only a few years earlier, Allergan was the target of a merger with pharmaceutical giant Pfizer in an agreement valued at 160 billion U.S. dollars – this would have been the biggest deal in pharmaceutical history. The transaction was later scrapped due to new rules on tax inversions in the United States, but the difference in value between the two deals highlights the recent struggles of Allergan.