Allergan Reports First-Quarter Sales Decline, But Raises Full-Year Revenue Guidance

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DUBLIN—Allergan plc (NYSE:AGN) reported Tuesday that its first quarter net revenues (on a GAAP basis) declined 2 percent to $3.60 billion compared with year-ago results. The company also reported an operating loss of $2.4 billion in the quarter ended March 31, which compared with an operating loss of $654 million in last year’s first quarter. In addition, Allergan raised its full-year 2019 guidance for net revenue to a range of $15.1 billion to $15.4 billion in Tuesday’s announcement, due in part to the expectation of regulatory approvals over the next several months.

Allergan said its GAAP operating loss in the first quarter was $2.31 billion, which includes the impact of impairments. The non-GAAP operating income in the quarter totaled $1.63 billion, a decrease of 7.6 percent versus the prior year quarter.

In the eyecare category, Allergan said first-quarter sales of Restasis totaled $231.7 million in the U.S. market, a decrease of 9.4 percent versus the prior year quarter. Restasis, which faces patent challenges from generic drug competitors, continued as the company’s second-best selling drug in the U.S. market, behind only Botox.

Also in the U.S. market, sales of Alphagan/Combigan declined 1.4 percent to $83.0 million, and sales of Ozurdex totaled $30.3 million, an increase of 18.8 percent compared with year-ago results.

“Our first quarter results reflected continued growth of our core business, which increased 4.4 percent year-over-year across our four key therapeutic areas,” chairman and chief executive officer Brent Saunders said in the company’s announcement.

“Growth of key products, such as Botox Cosmetic, Botox Therapeutic, Vraylar, Juvederm and Lo Loestrin offset declines in products that lost exclusivity and products which were divested in 2018.”

Saunders noted that many of the company’s key R&D programs are making steady progress, “and we now anticipate five regulatory approvals over the next 18 months. I appreciate the talented Allergan colleagues around the world who are bringing our products to patients who need them and positioning Allergan for a successful 2019 and beyond,” he added.

Among the new-drug candidates, Allergan noted a positive development from its topline safety study of a potential new treatment (abicipar) for neovascular age-related macular degeneration that the company is developing with Molecular Partners. Allergan said it expects to submit a Biologics License Application (BLA) for abicipar with the Food and Drug Administration (FDA) in the first half of 2019.