Allergan Considers Lap Band a Discontinued Operation

Allergan Inc. (AGN), the maker of the Botox wrinkle treatment, said it’s committed to selling the company’s obesity-treatment unit in the first half of 2013 after completing a review of the business.

The unit, dominated by the Lap-Band weight loss device, has been reclassified as a discontinued operation, resulting in an unspecified charge to write down assets to fair value,Irvine, California-based Allergan said in a statement today. Chief Executive Officer David Pyott said last month he wanted to sell the business by the end of the first quarter and that the unit has attracted interest, including from a private-equity company.

The obesity unit’s sales tumbled 22 percent in the fourth quarter to $36.8 million, Allergan said today. The unit’s annual revenue has plummeted from a peak of $296 million in 2009 because of questions about the risks from the Lap-Band and lawsuits stemming from surgeries that went awry. The obesity market once generated about a third of Allergan’s U.S. sales.

“We are dynamically managing our portfolio to drive long- term sales growth,” Pyott said in the statement.

The company said it can’t estimate a range of the expected disposal loss stemming from the writedown, the company said. The Lap-Band is an adjustable silicon band that helps people lose weight by reducing the amount of food their stomachs can hold.

Allergan rose 1.6 percent to $106.70 at the close in New York. The shares have gained 24 percent in the past year.

To contact the reporter on this story: Michelle Fay Cortez in Minneapolis at[email protected]

To contact the editor responsible for this story: Reg Gale at [email protected]

http://www.bloomberg.com/news/2013-02-05/allergan-seeks-to-s ell-lap-band-and-obesity-unit-by-june.html

Seems to me they have about 7 weeks left to meet their goals.  And it is about time.

I look forward to when fewer people are harmed by this device. Maybe I can finally stop talking about the band at that point! 

 YES may I say it cant happen SOON enough!!!!!!!!!!!!!!!!!!!!!!

But bottom line their losing Money ...and Allergan can still torture and poison plenty of people with Botox and all their other products that will continue to make them money

The obesity unit’s sales tumbled 22 percent in the fourth quarter to $36.8 million, Allergan said today. The unit’s annual revenue has plummeted from a peak of $296 million in 2009 because of questions about the risks from the Lap-Band and lawsuits stemming from surgeries that went awry. The obesity market once generated about a third of Allergan’s U.S. sales.

'Bout says it all

Yep, 22% in the last quarter and 40% last year.  Doesn't look like people want bands anymore.

If Allergan stops making bands R&R will surely follow suit.  I wonder what will happen to all those long term vets (coff coff) who need replacement parts such as ports and tubing?

Is this really true? I am about to get a lapband. How can it be a discontinued operation?

Last time I asked you if you were ****tin' us - no reply.  Everyone has spent their time and answered your questions honestly.  Yet you always come back with these unbelievalby naive responses like "my surgeon didn't or did tell me that"  or just some response that sounds like you are not real and in some sense you are poking fun of us.  Now do like Judge Judy says and "put your listening ears on".

Good luck Jessica.  We gave you all the info on how unpleasant the band could be and yet you dismiss it like it does not apply to you.

YOU CAN GET A BAND, YES YOU CAN!  that is not the problem.

I don't know you. I have done nothing to you. Why do you feel you have the right to come on here and be so mean to me? I was warned about people like you. I guess you didn't lose weight with your band so you're mad and want others to hate bands to! Yes some said the band is unpleasant, but others said they love their bands! I guess you didn't have your "listening ears" on when they told about that though.

Um my story has been told many a times.  I am not as hater.  I love my sister so much I advise her not to band.  It's love, not hate I offer.  You just seem not to be listening.  If you are set to band, band and we will support you.  My best friend is banded and I am right there for him.  We met having the  Band issues.  His doc allows him to keep his esophagus dilated and prescribes stacks of pilllows & bricks under his bed - oh and PPI' s.  His doc is world famous for the band.

FYI,  I lost 116lbs with the band & Weigh****chers.

All best