Allergan reports better-than-expected revenue

By: | Published: August 7, 2015 8:22 AM

Irish drugmaker Allergan Plc reported better-than-expected revenue for the first full quarter since the merger of Actavis and Allergan.

Irish drugmaker Allergan Plc reported better-than-expected revenue for the first full quarter since the merger of Actavis and Allergan.

Allergan, which changed its name from Actavis after the deal closed, said adding signature drugs like Botox and eye drops Restasis boosted branded products sales five-fold to $3.71 billion in the second quarter ended June 30.

The drugmaker has always expanded its portfolio through acquisitions, the latest being a $2.1 billion offer to buy Kythera Biopharmaceuticals Inc in June.

Other deals include rights to experimental products for dry eye disease from Oculeve for $125 million and a drug Merck & Co is testing for migraine.

Sales of generic products, which Allergan is selling to Israeli drugmaker Teva Pharmaceutical Industries Ltd, fell 1.4 percent to $1.58 billion.

The business accounts for a little over a quarter of Allergan’s revenue, compared with 37 percent in the first quarter.

Allergan agreed to sell the generic business to Teva for $40.5 billion in July, two months after CEO Brent Saunders said selling the business was going to be very difficult as it was closely tied to its branded business.

Allergan did not provide an update to its sales forecast for the full year.

Dublin-based Allergan’s net revenue for the quarter more than doubled to $5.76 billion.

The company, however, posted a loss, hurt by charges related to recent acquisitions.

Net loss attributable to shareholders was $243.1 million, or 80 cents per share, in the second quarter, compared with a net profit of $48.7 million, or 28 cents per share, a year earlier.

Stripping off one-time items, the company earned $4.41 per share.

Analysts on average had expected a profit of $4.38 per share on revenue of $5.71 billion, according to Thomson Reuters I/B/E/S.

Allergan’s shares were little changed at $337.95 on Thursday.

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