[ACCESSWIRE]
LONDON, UK / ACCESSWIRE / August 11, 2016 / Active Wall St. announces its post-earnings coverage on Allergan PLC (NYSE: AGN). The company reported second-quarter 2016 results before the opening bell on August 08th, 2016. The Irish pharmaceutical giant reported slight increase in revenue despite missing market expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.
Today, AWS is promoting its earnings coverage on AGN, touching on stock like Pfizer Inc. (NYSE: PFE) and Teva Pharmaceutical Industries Ltd. (NYSE: TEVA). Get our free coverage by signing up to:
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Earnings Reviewed
For the period ended on June 30, 2016, Allergan reported adjusted earnings per share of $3.53, up 12% as compared to adjusted earnings of $3.67 in the year ago period; beating analysts' consensus estimate of $3.34. Quarterly revenues at Allergan rose 1.5% to $3.68 billion on y-o-y basis as sales of the blockbuster wrinkle treatment Botox soared. Revenue from Allergan's Alzheimer drug Namenda IR slumped 98% after the loss of patent exclusivity. The company's revenue figure came short of the $3.72 billion analysts were estimating.
In April 2016, Pfizer Inc. terminated its proposed $160 billion acquisition of Allergan, driven by the actions announced by the U.S. Department of Treasury on tax inversion deals, in which companies move their domiciles to countries that have a lower tax rate. The combination would have been the biggest deal ever in the pharmaceutical industry.
Operation Reviewed
During Q2 FY16, Allergan's Specialized Therapeutics division reported a hike of 10.5% on a y-o-y basis hitting $1.5 billion in revenue, driven by robust growth in Eye Care, Facial Aesthetics, and Neuroscience.
The company's Facial Aesthetics division posted revenue growth of 11% on y-o-y basis to reach $240.6 million with Botox alone raking in $189.9 million for the reported quarter driven by continued market share expansion, enhanced promotional focus, and overall continued strong demand for the product.
Meanwhile, strong promotional efforts in Eye Care helped Restasis post quarterly revenues of $371.3 million as compared to revenue of $309.9 million in the year ago period.
U.S. General Medicine's net revenues declined 9.9% to $1.4 billion in Q2 FY16, due to a decline in Central Nervous System and Established Brands revenues that was partially offset by strong growth in Gastroenterology, Women's Health, and Anti-Infectives performance. Strong growth was put up by products like Linzess, Lo Loestrin, Estrace Cream, Minastrin 24, Liletta and new product launches like Viberzi, Avycaz and Dalvance.
The company's International segment recorded net revenues of $757 million, up 5.6% from the year-ago period.
On August 2, 2016, Allergan divested its generics business to Teva Pharmaceutical Industries Ltd. in a $40.5 billion deal. During the reported quarter, Allergan has treated its generics business as discontinued operations.
Share Repurchase
The completion of Allergan's generics business to Teva has enabled the company to repay $9.3 billion worth of debt, leaving Allergan with approximately $33.3 billion in total outstanding debt versus $27.6 billion worth of cash. Allergan CFO, Tessa Hilado, commented:
"We plan to commence our share repurchase program shortly with the initial focus on repurchasing approximately $5 billion in shares over the remainder of the year."
Outlook
Allergan also provided an update on its forecast for Fiscal Year 2016. Allergan projects FY 2016 revenues in a range of $14.65 billion to $14.9 billion from the previous guidance of total net revenues of about $17 billion and adjusted earnings in the range of $13.75 to $14.20 per share. Analysts were anticipating FY 2016 adjusted earnings of $14.21per share and revenues of $16.63 billion.
Stock Performance
At the close of the trading session on August 10, 2016, Allergan's shares were up marginally by 0.43% finishing the day at $252.18 on a total volume of 2.79 million shares traded. The company's stock price has gained 5.21% in the past one month.
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SOURCE: Active Wall Street
