Company Overview

Although its name may not be nearly as well known, Allergan is the company behind Botox—the name of the antiwrinkle treatment that has created a sensation among aging celebrities and society-page types. Botox works by temporarily paralyzing the facial muscles and usually costs $250 to $500 per treatment. The procedure has to be repeated every few months. Sales of the drug were $831 million in 2005, beating expectations and accounting for more than one-third of the company's revenues. (In 2004, it had $705 million in sales.) Not all of these sales were for cosmetic purposes, though—Botox has also been approved for treating such ailments as hyperhidrosis (excessive sweating) or blepharospasm (involuntary blinking). In early 2006, Allergan expanded sales of the drug throughout Europe, where it is also known as Vistabel or Vistabex, and began marketing it in Germany and the UK. Botox is Allergan's first major drug. In general, the company's strategy differs from that of other pharma companies: Instead of relying on revenue from a few very successful, widely marketed drugs, Allergan does its business mostly in the specialty markets of ophthalmology, neurology, and dermatology. Eye care products alone—including medications, surgical equipment, contact lenses, and intraocular lenses—make up some two-thirds of the company's sales. Because it's carved out these unique niches and built brand recognition as the leader in these categories, Allergan doesn't have to allocate as much money to big marketing campaigns, and it doesn't have to compete with other pharmaceutical companies jockeying for a piece of the hottest markets. In 2006, Allergan bought Inamed, maker of breast implants and an obesity treatment device, for a cool $3.2 billion.