Allergan’s (AGN) revenue and adjusted EPS figures for Q2 beat market estimates, sending shares up by about 0.7% in premarket trade. The pharma company reported a 2.9% improvement in revenues to $4.12 billion for the second quarter of 2018 compared to the prior year period, driven by a 10.6% increase in its core business which includes the Botox and Juvederm brands. Non-GAAP revenue rose 2.3% amid ongoing exclusivity challenges for older products.
Net loss for the quarter was $473 million or $1.39 per diluted share narrower than $796 million or $2.37 per diluted share for the same period last year. Adjusted EPS grew 10% to $4.42.
Looking ahead for the third quarter of 2018, Allergan expects net revenues of $3.75 billion to $3.9 billion, GAAP loss per share of $0.31-$0.01, and non-GAAP EPS of $3.80-$4.10.
For full-year 2018, the company raised its revenue outlook to $15.475-$15.625 billion from the prior range of $15.15-$15.35 billion, and its adjusted EPS guidance to $16.00-$16.50 from the prior estimate of $15.65-$16.25. GAAP loss per share forecast is widened to $3.08-$2.57 from the prior forecast of $2.81-$2.20.
US Specialized Therapeutics revenues grew 6.5% driven primarily by growth in Medical Aesthetics, including BOTOX Cosmetic, ALLODERM and the addition of CoolSculpting, as well as growth in BOTOX Therapeutic. Demand growth across the US Specialized Therapeutics portfolio was offset in part by lower net selling prices for Restasis and decreased revenues in Medical Dermatology due to generic pressure.
U.S. General Medicine fell 7.5% due to lower revenues from Namenda XR and Estrace due to generic competition. International revenues rose 8.1% excluding foreign exchange impact, driven by growth in Medical Aesthetics, Eye Care, and BOTOX Therapeutic.
Allergan’s board of directors has authorized a new $2 billion share repurchase program as part of the company’s capital allocation strategy. The company expects to deploy the program over the next 12 months. The company completed the $2 billion share repurchase that was previously authorized by the board in September 2017.
The company reaffirmed its commitment to maintaining investment grade credit ratings and achieving a net debt to adjusted EBITDA ratio of fewer than 2.5 times by the end of 2020.
Shares of Allergan ended Wednesday’s regular trading session up 1.07% at $176.83 on the NYSE. The stock had been trading between $142.81 and $256.15 for the past 52 weeks.
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