Allergan Reports Third Quarter Results Showing ‘Momentum’ in Core Business

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DUBLIN—Allergan plc (NYSE: AGN) reported Tuesday that its third quarter net revenues decreased 3 percent to $3.91 billion compared with the year-ago quarter as the loss of patent exclusivity on some brands weighed on top-line sales. The company also raised its full year sales and income guidance as sales of its “top-promoted products”—including Botox, Vraylar, Juvederm, Loestrin and Alloderm—are expected to drive revenue performance, according to the announcement. Sales of Restasis, a treatment for dry eye, declined 18.8 percent in the third quarter to $298.0 million, although the drop-off in sales during the quarter “were not as severe due to a delay in the launch of cheaper copycats of the dry eye treatment,” according to a Reuters report.

Allergan reported that its “GAAP” operating income in the quarter totaled $257.5 million, while “non-GAAP” operating income totaled $1.91 billion, a decrease of 3.2 percent compared with the year-ago quarter, as a result of “lower revenues as operating margin remained stable.”

Brent Saunders, chairman and chief executive officer, said the company’s performance in the third quarter “highlights the momentum in our business and our focus on execution.” He added, “We continued to deliver solid results in the third quarter, driven by double-digit growth from many of our key promoted brands. … We also maintained momentum in the R&D pipeline with achievements of significant milestones for key programs including cariprazine in bipolar depression, ubrogepant in acute migraine and abicipar in age-related macular degeneration.”

Among its other products in the eyecare category, Allergan said sales of Alphagan/Combigan totaled $95.4 million compared with $92.7 million in the year-ago period, while sales of Ozurdex increased 16.3 percent from the prior year quarter to $28.6 million.

Saunders also noted that Allergan’s core business, which represents nearly 90 percent of total revenues, grew 5.9 percent compared with the prior year (or 7.4 percent excluding foreign exchange). “Our business continues to generate robust cash flows, and we are maintaining a disciplined approach to capital allocation—with a strong balance sheet, strategic growth investments and capital returns to our shareholders," Saunders added in the statement.