Allergan is looking into strategic options for its women's heath unit amid a financial slump driven by heightened competition for its best-selling skin and eye drugs, unnamed sources told Bloomberg.
Here are four things to know.
1. Allergan is reviewing its portfolio and speaking with advisers about a potential sale of its women's health business, according to the sources.
2. The unit, which sells products like the birth control pill Lo Loestrin Fe and the menopause drug Femring, could be worth up to $5 billion. The unit posted $285.8 million in revenue for the fourth quarter of fiscal year 2017, compared to $314.5 million for the same quarter a year prior.
3. The potential divestiture is just one option Allergan is considering to address a 32 percent drop in stock value over the past year.
"We're undertaking a full fresh look at every option we have available to us," Allergan CEO Brent Saunders told investors in March at Barclays Global Healthcare Conference in Orlando, Fla., according to Bloomberg. "We are going to look at every idea. We're going to consider every option. And we're going to see if there are opportunities to create value, and we're going to do that with a sense of urgency."
4. Allergan has not decided whether to pursue a sale and may keep the unit, according to sources. A company spokesperson declined Bloomberg's request for comment.