Allergan sells obesity intervention business to Apollo Endosurgery

Allergan has finalised a transaction to sell off its obesity intervention business to Apollo Endosurgery, as announced in October 2013.

The deal will see Allergan receive a cash payment of $75 million (45.76 million pounds) subject to certain adjustments, while it will also be taking a $15 million minority equity interest in Apollo Endosurgery.

Allergan may also receive up to $20 million in contingent consideration upon the achievement of certain regulatory and sales milestones.

The decision to sell of the business unit was announced as part of the medical technology company's third-quarter financial report, resulting in the division being listed as a discontinued operation in the analysis.

Despite this, the company was able to generate total product net sales of $1.53 billion during the three-month period, up by 12.9 percent year on year, while earnings levels also saw a double-digit increase.

Allergan expects to continue to experience strong growth for the remainder of 2013, thanks in part to the recent US approvals granted to its products Botox and Juvederm Voluma XC.