Health care firm Allergan Inc. said Tuesday it plans to sell its Lap-Band business in the first half of this year.
The Lap-Band is an inflatable band, inserted during surgery, that limits food consumption by tightening the area around the top part of a patient’s stomach. Dwindling sales have compelled Allergan to sell its obesity intervention business, which includes Lap-Band.
The Irvine-based company said sales for its obesity intervention products were $36.8 million in the fourth quarter, down 22 percent from a year ago.
CEO David Pyott said the company plans to invest more in research and development, and to grow its business. He noted the company’s recent acquisitions of two other firms.
“We are dynamically managing our portfolio to drive long-term sales growth,” Pyott said in a statement.
Allergan earned $324.2 million or $1.06 per share in the fourth quarter, missing analyst expectations. Analysts had predicted the company would earn $1.18 a share. The company's sales increased eight percent to $1.5 billion.
Allergan’s stock closed at $106.70, up $1.63 a share on Tuesday.