Botox maker’s Irish division sees losses stretch to €189m

An Irish-based subsidiary of Allergan, the producers of Botox, recorded a pre-tax loss of over $252m (€189m) in 2010 as a result of legal settlements relating to certain therapeutic uses of Botox.

Accounts filed by Allergan Pharmaceuticals Holdings (Ireland) Ltd to the Companies’ Office, show that the holding company’s turnover increased by 33% from $341.2m to $454.8m in the 12 months to the end of Dec 2010. The main factor behind the loss was an exceptional expense of $367.9m due to legal settlement charges related to past US sales and marketing practices relating to certain therapeutic uses of Botox.

Soaring global demand for Botox resulted last year in Allergan announcing the creation of an additional 200 jobs at its plant at Westport, Co Mayo and the jobs will now see over 1,000 people employed by Allergan in Ireland.

The accounts for Allergan Pharmaceuticals Holdings (Ireland) Ltd do not relate to the activities of the business at Allergan’s Westport plant as its turnover is derived from royalty income.

Along with the Botox produced at the Westport plant, Allergan also produces eyecare products at the site. The company also produces Ozurdex, used to treat vision loss, at the Westport plant following approval by the US Food and Drug Administration.

One of Botox’s uses is the treatment of frown lines and wrinkles, and it has become widely known through its use by a number of Hollywood and high-profile media figures.

Last year, globally the sales of Botox for therapeutic and cosmetic use accounted for $1.5bn of Allergan’s $5.4bn in global revenues.

The filings for Allergan Pharmaceuticals Holdings (Ireland) Ltd show the company paid a dividend of $15m to its parent in 2010 that followed a dividend payout of $18.2m in 2009. The filings show the Irish company recorded an operating loss of $254.6m in 2010. The firm’s accumulated profits at the end of 2010 stood at $250.3m.

The figures show the firm’s operating expenses came to $341.6m with $294.5m relating to research and development expenses. At the end of 2010, the holding company had $518.3m in accumulated profits.

The directors state that they “are satisfied with the performance of the company”.