DUBLIN—Allergan plc (NYSE: AGN) reported total net revenue of $3.6 billion for the third quarter ending Sept. 30, 2016, a 4 percent increase versus the prior year quarter. The company said its performance was driven by strong performance from key brands and new product launches, offset by the loss of exclusivity and lower revenues on some key non-optical brands and unfavorable foreign exchange rates.

“Allergan continues to be among the best positioned biopharmaceutical companies to deliver long-term growth. Our top global products powered our performance in the third quarter, including Botox, Restasis, Linzess/Constella and fillers,” said Brent Saunders, chairman, CEO and president, Allergan.

Allergan posted a $266 million GAAP operating loss from continuing operations in the third quarter 2016. Non-GAAP adjusted operating income from continuing operations in the third quarter 2016 was $1.78 billion. For the third quarter 2016, Non-GAAP adjusted EBITDA from continuing operations was $1.9 billion, compared to $2.0 billion for the third quarter 2015. The decrease was primarily due to higher research and development and selling and marketing costs, according to Allergan.

The company reported negative cash flow from operations of $1.1 billion for the third quarter of 2016 which was unfavorably impacted by the $2.6 billion current period payment of taxes related to the divestiture of Allergan's Generics business to Teva.

Total GAAP selling, general and administrative expense was $1.16 billion for the third quarter 2016 compared to $1.02 billion in the prior year period. Total non-GAAP SG&A Expense was $1.0 billion for the third quarter 2016 compared to $867 million in the prior year period due primarily to new product launches and promotion for key products.

GAAP Research & Development (R&D) investment for the third quarter 2016 was $623 million. Non-GAAP R&D investment for the third quarter 2016 was $386 million, an increase over prior year due to costs related to key Eye Care and Central Nervous System development programs.

Amortization expense from continuing operations for the third quarter 2016 was $1.6 billion, compared to $1.56 billion in the third quarter of 2015. The company's GAAP continuing operations tax rate was 29.5 percent in the third quarter 2016. The company's non-GAAP adjusted continuing operations tax rate was 8.2 percent in the third quarter 2016.

As of Sept.30, 2016, Allergan had cash and marketable securities of $27.4 billion and outstanding indebtedness of $32.8 billion.

Allergan reported that net revenue for its U.S. specialized therapeutics business unit grew 12 percent, driven by growth in eyecare, facial aesthetics and neuroscience and urology. The company said its eyecare franchise experienced strong results with Restasis net revenues in the third quarter of 2016 of $356.4 million, up 14 percent.

Allergan’s glaucoma eye drops also experienced strong results with Lumigan/Ganfort net revenues in the third quarter of 2016 of $78.3 million, up 9 percent. Alphagan/Combigan net revenues in the third quarter of 2016 were $93.4 million, up 15 percent. Ozurdex net revenues in the third quarter of 2016 were strong at $20.9 million, up 19 percent driven by demand from the diabetic macular edema indication.

Allergan said its international net revenues increased 6 percent year over year, driven by growth in facial aesthetics and eyecare. Excluding the impact of an out-of-period adjustment in the three months ending Sept. 30, 2015, net revenues would have increased 11 percent.