Shares of Allergan PLC (NYSE: AGN) sank on Tuesday despite the pharmaceutical company reporting better-than-expected first quarter earnings and raising its full year outlook. Allergan attributed the positive results to higher sales of its candidate product Botox, an anti-wrinkle injection.
The company, however, posted a wider loss compared to the year-ago quarter due to a $2.5 billion charge after the unsuccessful clinical trials of its depression treatment candidate rapastinel.
Allergan boosted its full year guidance that was above analysts’ estimates. Shares of the company were down 4.47% in early morning trade.
AGN Earnings & Outlook
Allergan reported a loss of $2.31 billion, or a loss of $7.25 per share for the quarter ended March 31 from a loss of $654 million, or a loss of $0.99 per share a year earlier.
Adjusted for one-time costs and gains, earnings came in at $3.79 per share above the Refinitiv estimate of $3.55 per share.
Revenue declined to $3.60 billion from $3.67 billion in the same period a year ago. Analysts surveyed by Refinitiv were expecting revenue of $3.54 billion.
U.S. specialized therapeutics segment registered a revenue decline of 2.3% to $1.54 billion as higher demand of Juvederm collection, Botox therapeutic, and Botox cosmetic was partially offset by lower Coolsculpting sales.
U.S. general medicine revenue increased 2.1 % driven by growth of Vraylar and Lo Loestrin. International revenue climbed 1.3% to $801.5 million driven by growth in Facial aesthetics.
Looking forward, Allergan expects revenue of between $3.85 billion and $4 billion and adjusted EPS of between $4.20 and $4.40 for the second quarter. The company sees full year revenue of between $15.1 billion and $15.4 billion from the previous range of $15 billion to $15.3 billion.
Allergan raised its 2019 adjusted EPS outlook to at least $16.55 from its prior guidance of more than $16.36. Analysts expect full year earnings of $16.43 per share.
Allergan CEO Comments
Allergan Chairman and Chief Executive Brent Saunders said, “Our first quarter results reflected continued growth of our Core Business, which increased 4.4 percent year-over-year across our four key therapeutic areas. Growth of key products such as BOTOX® Cosmetic, BOTOX® Therapeutic, VRAYLAR®, JUVÉDERM® and Lo LOESTRIN® offset declines in products that lost exclusivity and products which were divested in 2018.”
“Many key R&D programs have made steady progress and we now anticipate five regulatory approvals over the next 18 months. I appreciate the talented Allergan colleagues around the world who are bringing our products to patients who need them and positioning Allergan for a successful 2019 and beyond,” Saunders added.
Allergan plc Profile
Allergan is one of the largest specialty pharmaceutical manufacturers. It specializes in aesthetics, ophthalmology, women’s health, gastrointestinal, and central nervous system products. In 2016, Allergan sold its generics and distribution segments to Teva.