Allergan raises annual guidance, as Botox sales jump in third-quarter

Headline results for the third quarter:

Revenue

$3.91 billion (forecasts of $3.89 billion)

-3%

Loss

$37.9 million

Versus $4 billion

Note: All changes are versus the prior-year period unless otherwise stated

What the company said:

CEO Brent Saunders remarked that Allergan "continued to deliver solid results in the third quarter, driven by double-digit growth from many of our key promoted brands, led by Botox therapeutic and cosmetic, Juvéderm and Vraylar." He added "we also maintained momentum in the R&D pipeline with achievements of significant milestones for key programmes, including [Vraylar] in bipolar depression, ubrogepant in acute migraine and abicipar in age-related macular degeneration."

Meanwhile, Saunders indicated that early buyer interest in its women's health and infectious diseases units, which the company previously said it planned to divest, was below the price of what he believes they are valued. He noted that Allergan had received preliminary expressions of interest for some of these businesses.

Other results:

  • US specialised therapeutics sales: $1.7 billion, unchanged
  • Medical aesthetics sales: $657.1 million, up 9.1 percent
  • Botox: $879.7 million (forecasts of $847.4 million), up 13.6 percent
  • Restasis: $311.6 million, down 18.5 percent
  • Juvéderm collection: $265.8 million, up 9.8 percent
  • Linzess/Constella: $210.5 million, up 7.1 percent
  • Bystolic/Byvalson: $157.1 million, down 7.9 percent
  • Vraylar: $138 million, up 72.1 percent

What analysts said:

Cantor Fitzgerald analyst Louise Chen noted that concerns remain regarding competition for Botox, the eventual launch of generic versions of Restasis and the absence of blockbuster drugs in Allergan's pipeline.

Looking ahead:

Allergan anticipates per-share earnings of $16.20 to $16.60, up from a prior forecast of $16.00 per share to $16.50 per share. The drugmaker also increased its full-year revenue forecast from $15.48 billion to $15.63 billion to a new range of $15.58 billion to $15.73 billion.

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