Allergan Plunges on Q2 Earnings Miss

Allergan Plc (NYSE: AGN) posted an increase in revenue for the second quarter of the current fiscal year on Monday, but the results still failed to meet the expectations of analysts. The pharmaceutical corporation doubled its losses in the given period amid the discontinued operations, including its generic drug unit’s sale to Teva Pharmaceuticals during the prior week, as well as the failure of its merger with Pfizer Inc.

Allergan’s second quarter revenue experienced a 1.5 percent revenue growth on a year-over-year basis to hit $3.68 billion, failing to beat the analysts ‘ consensus estimate of $3.72 billion. The pharmaceutical firm’s loss of exclusivity of Namenda IR, which is a treatment for Alzheimer’s adversely affected the sales from its US general medicine segment. The mentioned division reported a decline of 9.9 percent on a year-over-year basis to slump to $1.45 billion in the Q2. A huge part of this drop was offset by rallying sales of the best-selling medicines of the company, namely the eye medication Restasis as well as the wrinkle treatment Botox.

Sales of Botox edged higher by 14 percent on a year-over-year basis to touch $719.7 million in the mentioned period, beating the forecasts of market analysts of approximately $699.5 million. Meanwhile, sales of Restasis surged by about 20 percent on a year-over-year basis to clock in at $390.6 million, also topping the analysts’ estimates of $346 million. Revenue from Allergan’s US specialized therapeutics segment rallied by 10 percent for the quarter to hit $1.49 billion due to the mentioned drugs. On the other hand, ex-US sales soared by 5.6 percent to touch $757 million.

The pharmaceutical giant posted around $501.7 million quarterly net loss or loss of $1.44 per share, in comparison to a $243.1 million or 80 cents per share loss during the same quarter in the previous year. Earnings, excluding items such as acquisitions and divestitures, stood at $3.35 per share. This figure topped the analysts’ forecast of $3.31.

Allergan slashed its estimate for full-year revenue from $17 billion to $14.65 billion to 14.90 billion. Moreover, the company anticipates earnings per share of $13.75 to $14.20 for this fiscal year. Market analysts had been expecting revenue of $16.63 billion or $13.94 adjusted earnings per share.

During the previous week, a report by the Wall Street Journal pointed out the possibility that the pharmaceutical giant will bid Biogen Inc., which has a market capitalization or around $70 billion. As of 11:08 AM GMT -4 on August 8, the AGN stock is changing hands at $245.46, down by 3.31 percent or 8.49 points. Furthermore, Allergan currently has a market capitalization of 100.37 billion.

Comments (0)

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Pre-Market Alerts!

Get Pre-Market Analysts' Upgrades, Downgrades, Earnings & Initiations with our FREE daily email newsletter.