Allergan is considering a breakup of the company into two businesses, a person familiar with the matter told Reuters on Friday, potentially adding the botox-maker to a list of large drugmakers realigning themselves to focus on specific areas of their businesses.
As speculation about the company mounted, Allergan announced on Sunday it would buy Illinois-based Naurex, a privately held developer of treatments for depression, paying $560 million up front.
"The acquisition of Naurex is a great fit for Allergan and a compelling and exciting investment," Brent Saunders, CEO of Allergan, said in a statement. "We expect Naurex will enhance Allergan's mental health portfolio and build on our strategy to lead in this important therapeutic area."
Allergan is considering keeping its branded drugs business but spinning off or selling parts or all of its generics business, according to the person who asked not to be identified because the deliberations are confidential.