Justice Department's Botox Probe Costing Allergan $100M -- And There's No End in Sight

Allergan (AGN) is under siege from prosecutors, according to its annual report, and may burn nearly $100 million in legal fees defending itself against the government. The company previously reported that it had spent $7 million responding to a subpoena regarding the sales and marketing of Botox earlier this year, but that's not the only investigation going on at the company right now. Allergan said:

During 2009 and 2008, the Company incurred approximately $32.2 million and $25.7 million, respectively, of costs associated with the DOJ's inquiry related to Botox®

... Costs associated with responding to the DOJ investigation during fiscal year 2010 are expected to total approximately $30.0 million to $40.0 million

• January 2010: Allergan received a subpoena from the attorney general of Delaware on dry-eye drug Restasis and Acular LS, an eye-drops brand.
• September 2009: Allergan received an "Investigative Demand" from the DOJ in Oregon regarding Aczone, Allergan's acne drug.

The company said it believed the Aczone and eye-drug investigations will likely not be material. Botox is a different story, however: "Management is currently unable to predict the ultimate outcome or determine whether a liability has been incurred or make an estimate of the reasonably possible liability that could result," the company said.

Related:

• How Allergan Targets Poor Aussie Teens and Aborigines for Experimental Weight-Loss Surgery
• Allergan Insists DOJ Subpoena and Lawsuit v. FDA on Botox Are Unlinked
• Allergan Q2: How Much Does a DOJ Subpoena Cost? $7.4M