Allergan hikes annual revenue forecast as second-quarter sales top estimates

Headline results for the second quarter:

Revenue

$4.1 billion (forecasts of $3.9 billion)

-0.8%

Loss

$1.8 billion

Versus $472.5 million

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

What the company said:

"Allergan delivered steady growth in our key products including Botox, Vraylar, Juvéderm, Lo Loestrin and Ozurdex, while we continued to advance our pipeline, highlighted by the FDA's approval of Vraylar for bipolar depression and the [new drug application] acceptance for bimatoprost SR for glaucoma," remarked CEO Brent Saunders.

The company noted that it recorded pre-tax impairment charges totalling nearly $1.7 billion in the second quarter, which included a goodwill impairment of $1.1 billion, mainly due to delays in clinical studies and a reduction in the expected value of some R&D projects.

In June, AbbVie entered into a definitive agreement to acquire Allergan in a cash and stock transaction with an equity value of approximately $63 billion. Allergan said Tuesday that it plans to divest the experimental drug brazikumab, as well as the product Zenpep (pancrelipase), in connection with the transaction, irrespective of whether such a move is required to gain clearance for the deal by regulators, including the US Federal Trade Commission.

Other results:

  • US specialised therapeutics sales: $1.8 billion, -2.3%, with increased demand for Botox and the Juvéderm collection offset by lower sales of CoolSculpting and Restasis, as well as the divestiture of Allergan's medical dermatology business last September
  • US general medicine: $1.5 billion, +10.3%, as lower sales from products that lost exclusivity partially offset revenue growth for Vraylar, Viibryd and Lo Loestrin
  • Medical aesthetics unit: $735.5 million, -1.1%
  • Botox: $974 million, +4.2%, below forecasts of around $992 million
  • Restasis: $322.8 million, -3.4%, surpassing predictions of approximately $212 million
  • Juvéderm collection: $329.3 million, +11.3%, topping estimates of about $261 million
  • Linzess/Constella: $200.8 million, +1.3%
  • Bystolic/Byvalson: $151 million, +1.5%
  • Vraylar: $196.1 million, +71.7%

Looking ahead:

Allergan now expects annual sales this year of between $15.4 billion and $15.6 billion, lifted from an earlier range of $15.1 billion to $15.4 billion. The company explained that the guidance was raised partly due to longer Restasis exclusivity, which is now seen remaining through to the end of August. Meanwhile, annual earnings are still predicted to be at least $16.55 per share.

Pipeline update:

Allergan indicated that it expects the FDA to issue a decision in December regarding its filing seeking approval of the investigational CGRP receptor antagonist ubrogepant for the acute treatment of migraine, with an anticipated launch in the first half of next year.

The drugmaker also stated that the European Medicines Agency validated its marketing application for the DARPin therapy abicipar, which is being co-developed with Molecular Partners, for use in patients with neovascular age-related macular degeneration. Allergan said the EU decision is expected in the second half of 2020, while a US launch could occur in mid-2020 following an FDA filing and review.

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