Allergan to lay off 100 in O.C., 460 worldwide

Allergan Inc. says it is laying off 100 workers in Orange County, leaving about 2,000 employees at the Irvine headquarters of the maker of Botox and other health care drugs and devices.

The company will cut 460 jobs worldwide or about 5% of its total workforce, Chairman and Chief Executive David E.I. Pyott said today, announcing the earnings for 2008.

Pyott

“This is probably the worst day I’ve had in 10 years at Allergan,” Pyott said. “But the long-term health of the company is what it’s all about. Unfortunately, I’ve got to look after the 95% (of employees) who stay.”

The layoffs will primarily hit the marketing department and urology products division, Pyott said.

Allergan reported it earned a net profit of $150.6 million for the fourth quarter of 2008, down from $160.6 million for the same period in 2007. For the year, Allergan’s profit jumped to $578.6 million from $499.3 million in 2007.

Sales of Botox, the wrinkle treatment drug, slipped 3.1% in the fourth quarter to $329.2 million. Sales of all Allergan’s eye-care pharmaceuticals fell 3.6% to $466.9 million for the quarter.

Total sales for 2008 were $4.3 billion, up from $3.9 billion. Allergan forecast sales in 2009 will range between $4.1 billion and $4.3 billion.

Pyott said the company hopes sales will improve in 2010, but it is not planning for that to happen. On the negative side, American and European consumers are expected to scale back on purchases of products, such as Botox, which are not covered by insurance. On the positive side, new markets are opening in Asia for Botox, Pyott said, and six products are in the pipeline for approval by the U.S. Food and Drug Administration, which could improve sales.