Allergan is reportedly selling off two of its non-core businesses in a bid to appease frustrated investors
- Allergan is planning to sell its women's health business and infectious disease business, CNBC reported Wednesday citing sources.
- Investors have been unhappy with Allergan's stock performance over the last year, and some would like to see the pharma company explore splitting up.
- Allergan's stock fell 2% on Wednesday morning.
Allergan is planning to sell off two businesses it considers non-core to the company, CNBC reported Wednesday.
These include its women's health and infectious disease businesses, the report said, citing sources.
Allergan CEO Brent Saunders said in April that the company's "big four" businesses are eye care, aesthetics, diseases of the central nervous system, and gastrointestinal conditions, while women's health and anti-infective are "less strategically important."
Investors have been unhappy with the Botox-maker's stock performance over the last year, and some have expressed interest in seeing the pharma company explore splitting up, perhaps even further than divesting some of its non-core businesses.
Saunders acknowledged in the company's first-quarter earnings call in April the disconnect between how the company has performed and its stock price. He said the company is "deep into the process" of reviewing its strategic options, including divesting certain businesses and splitting the company outright. Though Saunders didn't give a set timeline, he said he'd give an update at the next earnings call in a few months if not before.