Allergan's branded drug sales soar in Q2

Allergan announced Thursday that second-quarter revenue from branded drugs surged to $3.7 billion, compared to $636.9 million in the year-ago quarter, driven mainly by solid sales from Botox, Restasis and Namenda. Meanwhile, generic product revenue declined 1.4 percent to $1.6 billion in the three-month period. The company is in the process of divesting its global generic pharmaceuticals business to Teva in a $40.5-billion deal announced last month.

Total quarterly revenue for the drugmaker more than doubled to $5.8 billion, slightly outpacing expectations. However, the company, which previously operated as Actavis, before buying Allergan in March and subsequently adopting the Allergan name, posted a net loss for the three-month period of $243.1 million, versus a profit of $48.7 million in the year-ago quarter, which it attributed in part to charges associated with recent acquisitions.

CEO Brent Saunders said "our performance was powered by operational excellence and double-digit growth across our brands and global generics businesses, while continuing outstanding momentum on the integration of Actavis and Allergan." He noted that the company "also achieved important R&D milestones that will help fuel both our branded and generics businesses in the future."

In other financial results, Botox generated $631.5 million in revenue during the quarter, while Restasis and the Namenda franchise had respective sales of $325 million and $437.3 million. The company has said that its earnings forecast for 2015 is unchanged as a result of the acquisition.

"We continue to strengthen our leadership position in key therapeutic areas through a strong focus on organic productivity, while also executing business development agreements to complement and build on our position in those therapeutic areas," Saunders said. In June, Allergan reached an agreement to acquire Kythera Biopharmaceuticals for about $2.1 billion, gaining rights to the US-approved submental fat treatment Kybella (deoxycholic acid).

Allergan also recently acquired exclusive worldwide rights to Merck & Co.'s CGRP receptor antagonists for $250 million, and bought Naurex for $560 million plus potential milestones, as well as dry-eye disease device maker Oculeve for $125 million.

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