OC Business Council Study Showcases Economic Impact of Allergan on California Economy
Thursday, September 29, 2016
A new study conducted by the Orange County Business Council (OCBC) found that Allergan's California operations generated a combined annual economic activity in the state of approximately $6.35 billionand net economic impact of $3.45 billion. The economic impact is a direct result of the Company's strong influence on employment in the state, generating more than 16,600 direct, indirect and induced jobs, with annual total statewide labor income of ~$1.55 billion.
The economic impact study, titled "The Economic Impact of Allergan on the California Economy," was conducted and developed by Dr. Wallace Walrod, Chief Economic Adviser, at the Orange County Business Council.
"The findings of this study clearly showcase the value and leadership of Allergan within our local and state economies, adding significant economic impact and contribution to California's highly skilled labor force. Allergan's success is a testament to the importance of attracting and retaining strong, growing companies to Orange County, and California—ensuring we have a growing, vibrant economy for years to come," Dr. Walrod said.
"Since our founding in Los Angeles in 1948, and throughout our history in Southern California, Allergan has been very proud of the significant impact we've had on this region and the State of California for nearly 70 years. Our more than 2,000 employees inCalifornia today, and the many that came before them, have discovered and developed some of the most innovative medicines and products in our industry. These medicines have had a profound impact on the care of patients in more than 100 countries around the world," said Brent Saunders, President and CEO of Allergan. "Allergan's rich history and impact for patients has not been achieved alone. Our success has been made possible by being in a supportive business environment – access to a highly skilled workforce, collaboration with leading medical professionals and institutions like the University of California at Irvine, and the unwavering support of local, state and federal elected officials and trade associations make Orange County and California a great business partner for companies like Allergan."
Additional findings from the OCBC study include:
Allergan's California operations generated annual total statewide labor income of approximately $1.55 billion, providing value added benefits of $3.45 billion to the state.
Allergan is a significant contributor to California state and local tax revenue. In 2016, combined taxes paid directly by Allergan in the state are expected to exceed $108 million.
Allergan's California workforce earns annual compensation, including benefits, of more than $438 million in total compensation, with average annual compensation for Allergan employees of more than $200,000, far exceeding the state's average annual wage of $55,260.
The Allergan Foundation, a U.S.-based, private charitable foundation committed to providing a lasting and positive impact in the communities in which Allergan plc employees live and work, has a long history of providing charitable grants and philanthropy in the state. Between 2011 and 2016, the Foundation provided grants to more than 450 Californiaorganizations totaling more than $11 million.
"Allergan has been an integral part of the Orange County business and innovation ecosystem that has helped advance our economy," said Bill Carpou, CEO of OCTANe. "We have enjoyed a special relationship that has helped cultivate new companies and drive innovation utilizing our LaunchPad accelerator and deep expertise from the Allergan community. Together we will continue to build a robust ecosystem that will advance our business community and fuel this ecosystem that has made Orange County one of the best hubs for innovation in the U.S."
"California is one of the most vibrant biopharmaceutical innovation ecosystems in our nation. We are home to more than 145,000 people who work for biopharmaceutical companies responsible for delivering medical innovation that can improve lives for people around the world," said Diane Harkey, Vice-Chair, California State Board of Equalization. "It is important that we support the continued growth and success of this industry, with leading companies like Allergan, by ensuring a positive business landscape that allows them to thrive in discovering, developing and providing valuable, life-enhancing medicines and treatments for millions of Americans."
The full study is available here.
About Allergan's California Operations
Allergan employs more than 2,000 highly skilled workers in the state of California. The Company's Irvine campus, which is its largest location globally, is home to employees supporting Allergan's commercial, research & development and administrative functions. Allergan opened its Irvine campus in 1971, and in 2010, the Company completed a substantial expansion of the campus to add a new research and development center to enhance its capabilities in bringing innovative treatments to patients around the world. Allergan also has employees based in additional location throughout the state, including Westlake Village, CAand South San Francisco, CA.
About Allergan plc
Allergan plc (NYSE: AGN), headquartered in Dublin, Ireland, is a bold, global pharmaceutical company and a leader in a new industry model – Growth Pharma. Allergan is focused on developing, manufacturing and commercializing branded pharmaceuticals, devices and biologic products for patients around the world.
Allergan markets a portfolio of leading brands and best-in-class products for the central nervous system, eye care, medical aesthetics and dermatology, gastroenterology, women's health, urology and anti-infective therapeutic categories.
Allergan is an industry leader in Open Science, the Company's R&D model, which defines our approach to identifying and developing game-changing ideas and innovation for better patient care. This approach has led to Allergan building one of the broadest development pipelines in the pharmaceutical industry with 70+ mid-to-late stage pipeline programs in development.
Our Company's success is powered by our more than 15,000 global colleagues' commitment to being Bold for Life. Together, we build bridges, power ideas, act fast and drive results for our customers and patients around the world by always doing what it is right.
With commercial operations in approximately 100 countries, Allergan is committed to working with physicians, healthcare providers and patients to deliver innovative and meaningful treatments that help people around the world live healthier lives everyday.
For more information, visit Allergan's website at Allergan.com.
About Orange County Business Council (OCBC)
Orange County Business Council is the leading voice of business in Orange County, California. OCBC represents and promotes the business community, working with government and academia, to enhance Orange County's economic development and prosperity in order to preserve a high quality of life. OCBC serves member and investor businesses with nearly 250,000 employees and 2,000,000 worldwide. In providing a proactive forum for business and supporting organizations, OCBC helps assure the financial growth of America's sixth largest county. For more information, visit ocbc.org.
Allergan plc Forward-Looking Statement
Statements contained in this communication that refer to future events or other non-historical facts are forward-looking statements that reflect Allergan's current perspective of existing trends and information as of the date of this release. Except as expressly required by law, Allergan disclaims any intent or obligation to update these forward-looking statements. Actual results may differ materially from Allergan's current expectations depending upon a number of factors affecting Allergan's business. These factors include, among others, the difficulty of predicting the timing or outcome of FDA approvals or actions, if any; the impact of competitive products and pricing; market acceptance of and continued demand for Allergan's products; difficulties or delays in manufacturing; and other risks and uncertainties detailed in Allergan's periodic public filings with the Securities and Exchange Commission, including but not limited to Allergan's Annual Report on Form 10-K for the year ended December 31, 2015and Quarterly Report on Form 10-Q for the quarter ended June 30, 2016 (such periodic public filings having been filed under the "Actavis plc" name). Except as expressly required by law, Allergan disclaims any intent or obligation to update these forward-looking statements.
 California annual average compensation based on Bureau of Labor Statistics data.
Category: Economic Development