As for Allergan, the double-whammy of recession and competition from Medicis' version of Botox, Dysport, depressed its revenues by 3.2 percent. (Just to prove the point, Medicis' revenues were up 3 percent to $141 million.) Thirty percent of Allergan's sales are Botox -- that's what's at stake.
So the situation for both companies is deteriorating, but at a slower pace for Allergan than for GSK.
Ancient history: Combining these two companies would bring them both full circle for a second time. The Orange County Business Journal notes that GSK's predecessor, SmithKline Beecham, acquired Allergan in the 1980s and then spun it off again.
- Previous stories about Allergan:
- Allergan Q2: How Much Does a DOJ Subpoena Cost? $7.4M
- The Sanofi-Allergan-Amgen Deal Worst-Case Scenario
- Could Allergan's Reliance on Stars Hurt It in War With Medicis?
- Allergan's Q1 Nightmare: Profit Down; Black Box Warning on Botox Vindicates an Old Nemesis; "It's All Medicis' Fault!"
- Allergan Could Lose a Third of Botox Market With FDA's Approval of Medicis' Dysport
- The GlaxoSmithKline-Allergan Deal Worst-Case Scenario
- Previous stories about GSK:
- GSK Q2: Generics Wreak Havoc; Cost Reductions From Layoffs Spent on Advertising
- The FDA Gives GSK a New Way to Tout Alli
- GSK Wins Full Review of Tafas v. Doll, Wonky-But-Crucial Patent Case
- GSK's Alli Shows Future for Vivus, Arena and Orexigen's Obesity Candidates
- Why Abbott Is Allowed to Manipulate GSK and BMS's AIDS Drug Prices
- Sanofi, GSK Make Novartis Look Scrooge-Like on Swine Flu Vaccine Donations
- GSK Q1: Â£450 Million in Generic Damage to CNS Category