Healthcare Industry News: Allergan Medical
News Release - November 12, 2007
Allergan, Inc. and Covidien Ltd. Enter into Co-Promotion Agreement for LAP-BAND(R) Adjustable Gastric Banding SystemCovidien Agreement Strengthens Allergan's Coverage of Bariatric Surgery Community in the Fight Against Obesity
IRVINE, Calif.--(HSMN NewsFeed)--Allergan, Inc. (NYSE: AGN ) today announced that it has entered into an agreement with a subsidiary of Covidien Ltd. (NYSE: COV, BSX: COV), a leading global provider of healthcare products, under which Covidien will co-promote Allergan’s LAP-BAND® Adjustable Gastric Banding System to bariatric and other surgeons in the United States.
Under the multi-year agreement, which became effective on November 9, 2007, Covidien will leverage its expertise in bariatrics and utilize its Surgical Devices sales force to promote the LAP-BAND® System. Allergan will continue to deploy its own bariatric sales force. Allergan will continue to recognize revenues from the sale of the LAP-BAND® System, but other financial terms were not disclosed.
“The alliance with Covidien is an important step in the fight against obesity. With a strong investment in targeted consumer advertising, comprehensive surgeon and referring physician education, and robust reimbursement assistance, we are successfully broadening patient awareness of and access to the LAP-BAND® System, as evidenced by the market leadership and rapid growth of the product,” said Robert Grant, President of Allergan Medical, a division of Allergan, Inc. “The alliance with Covidien will enable us to bring even greater value to the market by marrying our expanded and experienced field sales force with the added reach provided by Covidien’s sales representatives to further promote, educate and train surgeons on the LAP-BAND® System.”
“Covidien is committed to offering every surgical option to patients who can improve their health through bariatric surgery,” said Scott Flora, President, Surgical Devices, Covidien. “Our world-class professional medical education group will train surgeons on the LAP-BAND® System, ensuring that the bariatric surgery community has a full arsenal of best-in-class products to offer to their patients,” added Flora.
In the United States, approximately 56 million adults are obese, of whom 20 million are severely obese. Obesity is a chronic disease caused by a variety of factors, singly or in combination, including environmental (social and cultural), genetic, physiologic, metabolic, behavioral and psychological.
About the LAP-BAND® Adjustable Gastric Banding System
The LAP-BAND® Adjustable Gastric Banding System was approved by the United States Food and Drug Administration in June 2001 for severely obese adults with a Body Mass Index (BMI) of 40 or more or for adults with a BMI of at least 35 plus at least one severe obesity-related health condition, such as Type 2 diabetes, hypertension or asthma.
Used in more than 300,000 procedures worldwide, the LAP-BAND® System was developed to facilitate long-term weight loss and reduce the health risks associated with severe and morbid obesity. Unlike gastric bypass surgery, the LAP-BAND® System does not involve stomach cutting, stapling or intestinal re-routing. Using laparoscopic surgical techniques, the LAP-BAND® System is placed around the top portion of the patient’s stomach, creating a small pouch. By reducing stomach capacity, the LAP-BAND® System can help achieve weight loss by creating an earlier feeling of satiety. The LAP-BAND® System is adjustable, which means that the inflatable band can be tightened or loosened to help the patient achieve the desired level of satiety while maintaining a healthy diet. It is also reversible and can be removed at any time.
Important Information about the LAP-BAND® Adjustable Gastric Banding System
As with any surgery, there are possible risks and complications with the LAP-BAND® System, including but not limited to infection, nausea, vomiting, band slippage and obstruction, and in rare cases, gastric perforation and reoperation. For more risk information visit www.lapband.com or call 1-877-LAP-BAND.
This press release contains "forward-looking statements", including the statements by Mr. Grant and Mr. Flora and other statements regarding the safety, effectiveness, market potential and adverse events associated with Allergan’s LAP-BAND® System. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from Allergan's expectations and projections. Risks and uncertainties include, among other things, general industry and medical device market conditions; technological advances and patents attained by competitors; challenges inherent in the research and development and regulatory processes; challenges related to product marketing, such as the unpredictability of market acceptance for new medical device products; inconsistency of treatment results among patients; the potential for product failures; potential difficulties in manufacturing new products; and governmental laws and regulations affecting domestic and foreign operations. Allergan and Covidien expressly disclaim any intent or obligation to update these forward-looking statements except as required to do so by law. Additional information concerning these and other risk factors can be found in press releases issued by Allergan, as well as Allergan's public periodic filings with the Securities and Exchange Commission, including the discussion under the heading "Risk Factors" in Allergan's 2006 Form 10-K and Allergan's Form 10-Q for the quarter ended September 28, 2007. Copies of Allergan's press releases and additional information about Allergan are available on the World Wide Web at www.allergan.com or you can contact the Allergan Investor Relations Department by calling 1-714-246-4636.
About Allergan, Inc.
With nearly 60 years of experience providing high-quality, science-based products, Allergan, Inc., with headquarters in Irvine, California, discovers, develops and commercializes products in the ophthalmology, neurosciences, medical dermatology, medical aesthetics, obesity intervention, urologics and other specialty markets that deliver value to its customers, satisfy unmet medical needs, and improve patients' lives.
Covidien is a leading global healthcare products company that creates innovative medical solutions for better patient outcomes and delivers value through clinical leadership and excellence. Covidien manufactures, distributes and services a diverse range of industry-leading product lines, including Surgical Devices, Energy-based Devices, Respiratory and Monitoring Solutions, Patient Care and Safety Products, Imaging Solutions, Pharmaceutical Products, Medical Supplies and Retail Products. With 2006 revenue of nearly $10 billion, Covidien has more than 43,000 employees worldwide in 57 countries, and its products are sold in over 130 countries. Please visit www.covidien.com to learn more about our business.
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