Allergan tops estimates as Botox drives gains

Earnings


Botox maker Allergan reported a better-than-expected quarterly profit on Monday and raised its full-year forecast for adjusted net income, driven by higher sales of its medical aesthetics products including the blockbuster wrinkle treatment.

The company’s shares rose about 2.4 percent to $166.70 in premarket trading.

Sales of Botox, its biggest drug by revenue that is also used in treating chronic migraine and overactive bladders, jumped 14.5 percent to $817.3 million in the first quarter.

The company’s aesthetics unit, which also sells products to remove excess body fat, posted a near 30 percent jump in sales.

The Dublin, Ireland-based company has been conducting a strategic review of its business and considering acquisitions and divestitures.

Allergan backed away from a bid for Shire Plc earlier this month, after confirming reports that it was mulling an offer for the rare-disease specialist.

The company managed to grow its revenue despite “exclusivity challenges” for older products, Chief Executive officer Brent Saunders said in a statement.

U.S. Sales of Allergan’s eye drug, Restatsis, which is expected to face competition from cheaper drugs, fell 17.2 percent.

The company now expects 2018 adjusted earnings of $15.65 to $16.25 per share, slightly above its previous forecast of $15.25 to $16 per share.

Net loss attributable to shareholders was $332.5 million, or 99 cents per share, compared with $2.63 billion, or $7.86 per share, a year earlier.

Excluding one-time items, Allergan reported a profit of $3.74 per share, topping analysts’ expectations of $3.36, according to Thomson Reuters I/B/E/S.

Total revenue rose 2.8 percent to $3.67 billion, topping analysts’ average estimate of $3.59 billion.

Cantor Fitzegerald analyst Louise Chen said a beat and raise was widely anticipated by the street since Allergan’s setup looked “conservative heading into the year.”



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