Allergan Results Boosted by New, Established Drugs -- Update

By Austen Hufford 

Allergan PLC said revenue rose as results were bolstered by both new and established drugs.

Shares rose 1.8% in early trading as the company also reported a higher-than-expected revenue outlook.

For the year, Allergan said it expects adjusted revenue of $15.5 billion to $15.8 billion and adjusted earnings of $15.80 to $16.30 a share. Analysts had expected revenue of $15.37 billion and earnings per share of $16.01.

Last year Allergan and Pfizer Inc. terminated a planned $150 billion merger after the Obama administration took aim at the deal and Allergan also completed the sale of its generics business to Teva Pharmaceutical Industries Ltd. Allergan said in November that it would return more cash to shareholders because the drugmaker isn't interested in a making a megadeal.

"Clearly having those two big transactions to deal with in 2016 did take some of our time," Chief Executive Brent Saunders said. "I'm looking forward to 2017, where we can really focus on execution."

During the quarter, new drug launches accounted for $90 million in revenue. Vraylar, a drug to treat bipolar and schizophrenia, had $43.2 million in revenue in the quarter and was taken by about 40,000 patients during its first year.

For the fourth quarter, Allergan reported a loss of $0.6 million, or 20 cents a share, compared with a loss of $630.9 million, or $1.78 a share, a year prior. Much of the decreased loss came from an income tax benefit.

Excluding special charges and items related to acquisitions and divestitures, earnings were $3.90 a share. Revenue rose 7.1% to $3.86 billion.

Analysts had projected adjusted earnings of $3.76 a share on revenue of $3.77 billion, according to Thomson Reuters.

Several drugs across Allergan's portfolio logged double-digit sales increases, with revenue from antiwrinkle treatment Botox increasing 14% to $739.3 million and sales of transplant drug Restasis sales rising 13% to $411.4 million. Irritable bowel syndrome treatment Linzess, which is known as Constella outside the U.S., had sales of $178.2 million, up 36%.

Sales in its U.S. general medicine segment fell 0.1% to $1.53 billion, on a decline in central nervous system drugs. U.S. specialized therapeutics revenue grew 11% to $1.57 billion on growth in eye care, facial aesthetics, neuroscience and urology. International sales grew 9% to $953.2 million on eye care and facial aesthetics.

Write to Austen Hufford at [e-mail]

(END) Dow Jones Newswires

February 08, 2017 11:24 ET (16:24 GMT)

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