US biotechnology company, Allergan, received a boost yesterday as investors welcomed the firm’s announcement that it would be restructuring its European operations, saving as much as $9 million dollars per year in the process.

Under the plan, which comes as part of a long-term initiative to focus its resources on developing new products with high-market potential, continue growing and increase its competitiveness, Allergan’s European research and development programmes will be integrated into facilities in the UK, Ireland and the USA.

The company says that the integration of its European R&D efforts will hit cost between $50 and $60 million, which it will start recording in the first quarter of 2005, up until the second quarter of 2006. The firm does not expect the news will impact 2004 guidance, ongoing guidance or on the number of its European sales force positions, adding that the savings will be principally re-invested into its businesses.