Allergan posts wider loss in Q1 on impairment charge, but lifts annual guidance as sales top forecasts

Headline results for the first quarter:

Revenue

$3.6 billion (forecasts of $3.5 billion)

-2%

Loss

$2.4 billion

Versus loss of $332.5 million

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

What the company said:

"Our first-quarter results reflected continued growth of our core business," remarked CEO Brent Saunders, adding that "growth of key products such as Botox Cosmetic, Botox Therapeutic, Vraylar, Juvéderm and Lo Loestrin offset declines in products that lost exclusivity and products which were divested in 2018."

Allergan noted that the loss in the quarter was mainly due to a $2.5-billion impairment charge related to the failure of the experimental drug rapastinel in the Phase III RAP-MD-01, RAP-MD-02 and RAP-MD-03 studies for major depressive disorder.

Other results:

  • US specialised therapeutics sales: $1.5 billion, down 2.3 percent, with lower Restasis and CoolScupting sales offsetting growth for Botox and Juvéderm collection
  • US general medicine: $1.3 billion, up 2.1 percent, fuelled by growth in Vraylar and Lo Loestrin, partially offset by lower revenues from products that lost exclusivity
  • Medical aesthetics unit: $648.2 million, up 2 percent
  • Botox: $868.4 million, up 6.3 percent, ahead of forecasts of $761.8 million
  • Restasis: $242.1 million, down 11.7 percent, due to lower pricing
  • Juvéderm collection: $287.5 million, up 6.9 percent
  • Linzess/Constella: $166.8 million, up 1.2 percent
  • Bystolic/Byvalson: $128.7 million, down 3.5 percent
  • Vraylar: $143.7 million, up 70.3 percent

Looking ahead:

Allergan said it now expects annual sales this year of between $15.1 billion and $15.4 billion, lifted from an earlier prediction of $15 billion to $15.3 billion. The company added that full-year earnings are now estimated to be at least $16.55 per share, raised from a prior forecast of at least $16.36 per share. Analysts anticipate full-year sales of $15.2 billion on earnings of $16.43 per share.

Pipeline update:

Saunders noted that several R&D programmes were progressing, adding "we now anticipate five regulatory approvals over the next 18 months." 

What analysts said:

"The raise in 2019 guidance is not unexpected, in our view, given the lack of generic entrants to Restasis," remarked Citi analyst Liav Abraham.  

To read more Top Story articles, click here.