Botox-Maker Allergan to Lay Off 1,500

Irvine-based Botox maker Allergan announced today it will lay off about 1,500 employees, mostly in the Southland, and eliminate about 250 vacant positions in an attempt to head off an unwelcome takeover bid by a rival company.

Quebec-based Valeant Pharmaceuticals International Inc. has led a $53 billion takeover of Allergan.

The company's chief executive tried to paint as rosy a picture as possible to shore up investors.

"With continuing strong momentum, Allergan recorded the strongest increase in absolute dollar sales in any quarter in our history, and again delivered sales and earnings per share growth above the high end of our expectations," said David E.I. Pyott, Allergan's chairman of the board and chief executive.

"Furthermore, we are pleased with the progression of key clinical programs into Phase 3 as well as the recent FDA approval of OZURDEX for Diabetic Macular Edema."

Allergan executives are banking on a restructuring the rest of the year that they estimate will offer pre-tax savings of about $475 million.

Allergan executives claim Valeant's takeover is "grossly inadequate" and "substantially undervalues Allergan, creates significant risks and uncertainties for Allergan stockholders and is not in the best interests of Allergan and its stockholders."

--City News Service