Allergan Plans to Build New R&D; Facility : Expansion: Directors approved the proposal as a way to bring new products to market and to attract qualified research scientists, the company says. Separately, Allergan reported a 15% increase in its first-quarter net earnings.
Allergan Inc., the manufacturer of eye- and skin-care products, said Tuesday that it plans to build a new research and development facility at its headquarters here.
Construction of the 153,000-square-foot building was approved by Allergan’s directors Tuesday as a way to bring new products to market and to attract and retain top-quality scientists, the company said.
The building is expected to be ready for occupancy in 1993.
“This new facility is a key component in our overall growth strategy,” Chairman Gavin S. Herbert said in a statement.
“It will provide state-of-the-art resources for a significantly expanded team of Allergan scientists.”
The new multistory research center will be one of five major buildings at the Allergan complex on Dupont Drive near Von Karman Avenue.
The projected cost was not disclosed.
Separately Tuesday, the Irvine company reported higher sales and earnings for the first quarter ended March 31.
Allergan said its earnings rose 15% to $15.7 million, up from $13.6 million for the year-earlier quarter.
Sales grew at a slower pace, increasing 9% over the year-earlier period to $211.8 million.
Favorable exchange rates accounted for most of that increase, however; sales grew just 3% at constant currency rates.
The quarter marked the first period in Allergan’s history for which international sales outpaced domestic sales.
International sales accounted for 51% of the quarterly total, the company reported.
Also Tuesday, shareholders at Allergan’s annual meeting rejected a proposal by a New York state pension fund to shut down the company’s South Africa sales offices.
About 39 million shares, or 87.8% of the total cast, were voted against the proposal, which received about 5.4 million shares voting in favor of the divestment plan.
