Allergan hikes annual revenue guidance as third-quarter sales top forecasts

Headline results for the third quarter:

Revenue

$4.1 billion (forecasts of $3.9 billion)

+3.6%

Loss

$786.8 million

Versus $37.9 million

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

What the company said:

"The core business has grown and has been bolstered by significant pipeline progress, with three new molecular entities currently under regulatory review," remarked CEO Brent Saunders, adding that Vraylar, Botox, Juvéderm, Ozurdex and Lo Loestrin "continue to lead the way."

Allergan noted that in the quarter, it recorded a previously disclosed pre-tax charge of $750 million related to a settlement reached in principle by its Forest Laboratories subsidiaries with direct purchasers of the Alzheimer's disease drug Namenda in the US.

The drugmaker, which is in the process of being acquired by AbbVie for $63 billion, also reiterated that it expects the merger to become final in early 2020. Shareholders recently voted to move forward with the pending acquisition by AbbVie, although the US Federal Trade Commission has requested additional information about the deal.

Other results:

  • US specialised therapeutics sales: $1.7 billion, down 2.1%, with demand for Botox and Juvéderm products offset by a decline in CoolSculpting sales versus the year-ago period, as well as the divestiture of Allergan's US medical dermatology portfolio in September 2018
  • US general medicine: $1.5 billion, up 9.9%, led by gains for Vraylar, Viibryd and Lo Loestrin, which were partially offset by lower sales from exclusivity loss on some brands
  • Botox: $928.7 million, up 5.6%, with therapeutic sales rising 5% to $525.5 million; the company noted it has seen "minimal switching" from the product to injectable CGRP monoclonal antibodies
  • Restasis: $296 million, down 5%
  • Juvéderm collection: $279.5 million, up 5.2%, with US growth impacted by the timing of promotional programmes
  • Vraylar: $234.6 million, up 70%, boosted by US approval in May for use in patients with bipolar depression
  • Linzess/Constella: $221.4 million, up 5.2%
  • Bystolic/Byvalson: $152.8 million, up 0.7%

Looking ahead:

Allergan now expects annual sales this year of between $15.6 billion and $15.8 billion, lifted from an earlier range of $15.4 billion to $15.6 billion. The drugmaker explained that the increased sales guidance is due to an extra 2.5 months of exclusivity on Restasis, which is now expected to run until mid-November. The company also re-affirmed its earnings estimate for the year at over $16.55 per share. Meanwhile, analysts are anticipating earnings of $16.70 per share on $15.6 billion in revenues in 2019.

To read more Top Story articles, click here.