Allergan plc (NYSE: AGN) reported a wider loss in the third quarter of 2019 due to the divestitures, products that lost or are at risk of losing exclusivity, and an increase in operating expenses. However, the results exceeded analysts’ expectations.
Net loss was $786.8 million or $2.40 per share compared to a loss of $37.9 million or $0.11 per share in the previous year quarter. Adjusted earnings remained unchanged from last year at $4.25 per share.
Net revenues increased by 4% to $4.05 billion while adjusted revenue rose by 3% to $4.03 billion. The top line was driven by growth in top promoted products including Vraylar, Botox, Juvederm collection, Ozurdex, and Lo Loestrin.
On October 14, Allergan shareholders voted to approve the proposed acquisition of Allergan by AbbVie (NYSE: ABBV). Additionally, both companies received a Request for Additional Information and Documentary Material from the US Federal Trade Commission. Allergan and AbbVie continue to expect to close the transaction in early 2020.
Looking ahead into fiscal 2019, the company lifted its revenue outlook to the range of $15.625-15.825 billion from the prior range of $15.425-15.625 billion and its adjusted revenue forecast to the range of $15.6-15.8 billion from the previous range of $15.4-15.6 billion. For fiscal 2019, GAAP loss guidance is widened to more than $14.98 per share from the prior loss estimates of more than $12.03 per share. Adjusted earnings are still anticipated to be more than $16.55 per share.
For the third quarter, revenue from the US Specialized Therapeutics decreased by 2.1% due to the decline in sales of CoolSculpting and the divestiture of its Medical Dermatology business despite demand growth in Botox and Juvederm.
The US General Medicine revenue increased by 10% as demand growth in Vraylar, Viibryd and Lo Loestrin was partially offset by lower revenues from products that lost exclusivity. International revenue rose by 5% as growth in Facial Aesthetics and Botox Therapeutic partially offset declines in textured breast implants.
Allergan anticipates a regulatory decision from the FDA in December 2019 for its New Drug Application (NDA) for ubrogepant, an oral CGRP receptor antagonist for the acute treatment of migraine. The launch is expected to follow in the first half of 2020.
Allergan expects to launch CoolTone, a body contouring device that uses magnetic muscle stimulation, or MMS technology, to strengthen, tone and firm the muscles of the abdomen, buttocks, and thighs, in the fourth quarter of 2019, following FDA clearance in the second quarter of 2019.
FDA action is expected in the first half of 2020 on Allergan’s NDA for Bimatoprost Sustained-Release, a biodegradable implant for the reduction of intraocular pressure in patients with open-angle glaucoma or ocular hypertension. The launch is expected to follow in the first half of 2020.