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Allergan's Q3 Sales Get A Facelift From Botox; AbbVie Deal On Track

Allergan's Q3 Sales Get A Facelift From Botox; AbbVie Deal On Track

Botox maker Allergan plc (NYSE: AGN), which has agreed to be bought by AbbVie Inc (NYSE: ABBV) for $63 billion, reported Tuesday ahead of the open with higher third-quarter revenue and an adjusted loss that was wider than expected.

The company said its pending acquisition by AbbVie is on schedule. 

Botox Boost For Top Line

Allergan said its third-quarter total net revenue climbed 3.6% year-over-year to $4.05 billion, ahead of the $3.88-billion consensus estimate.

Non-GAAP net revenues improved from $3.91 billion to $4.03 billion.

The company attributed the year-over-year growth to strong sales of the antipsychotic drug Vraylar, Botox Cosmetic, Juvederm, Botox Therapeutic, Ozurdex and Lo Loestrin. Vraylar sales grew 70% and U.S. Botox Cosmetic sales grew 10%.

Loss Wider Than Street Forecast

The net loss per share widened from 11 cents to $2.40. The non-GAAP net income per share remained flat at $4.25, higher than the Street forecast of $4.22.

Mixed Guidance

Allergan upwardly revised its 2019 guidance and said it expects total non-GAAP net revenue of $15.6 billion to $15.8 billion versus the previous guidance of $15.4 billion to $15.6 billion.

The company increased the low end of its loss per share estimate from a loss of $12.03 to a loss of $14.98 per share, but maintained the upper end of the range at a loss per share of $16.55.

Deal Itinerary Intact

In an update on its pending merger with AbbVie, Allergan said its shareholders voted Oct. 14 to approve the deal. The company also said it has received a second request from the FTC.

Both AbbVie and Allergan expect the deal to close in early 2020, according to Allergan. 

Allergan shares were down 0.25% at $178.36 at the time of publication Tuesday. 

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Photo courtesy of Allergan. 

Posted-In: Biotech Earnings News Guidance Trading Ideas Best of Benzinga


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