Heading into the New Year, the CEO’s of Allergan and Actavis say there will be virtually no change in Allergan’s commitment to its customers, physicians, and research and development.
Both companies are well run businesses that have a strong commitment to innovation and research and development. Allergan, maker of Botox, recently agreed to be acquired for $66 billion by Actavis, who makes generic and brand-name medicines. Combining Actavis and Allergan will create one of the 10 largest global drug makers, with more than $20 billion expected in revenue next year.
Actavis CEO and President, Brent Saunders, said they would keep spending on R&D, contrasting to Valeant Pharmaceutical’s pledges to reduce research spending by 90% during their hostile takeover attempt earlier this year. “We were very concerned about what Valeant would have done to Allergan and I think the most dramatic statement was their wanting to reduce our R & D budget by 90%. They would have come in here and basically destroyed everything except very late stage clinical development,” said David Pyott, CEO of Allergan.
Saunders said research and development is the lifeblood of Actavis, which is good news for customers and physicians who were concerned a buyout would mean an end to physician education and customer service.
Continuing a Great Track Record with the Plastic Surgery Community
As the two companies entered into discussions, it became clear Actavis’ values are very similar to those of Allergan. The latter has always had close ties to the entire network of patient care, from supporting medical education to being a strong supporter of the medical societies.
“We have tremendous focus on the customer and not just the customer in the simplest of sense where we call on a doctor’s office and supply them with samples and provide them with information, but much, much broader than that,” said Pyott.
Job Cuts in the Forecast
“Our commitment to our customers and our plastic surgeons will be unwavering,” said Saunders. “You should notice no change, and hopefully over time a stronger commitment from the combined companies. While both Pyott and Saunders are positive about the acquisition, there will be changes in staff within the two companies. “While Brent (Saunders) and I are very open with our teams, we tell them, when mergers and acquisitions occur there has to be reductions of duplicate spending,” said Pyott.