Allergan tops estimates as botox drives gains
Revenue from the aesthetics unit, which sells products to melt body fat, rose nearly 30%
Allergan’s wrinkle-smoother botox may also help migraine patients have fewer painful headaches.
Allergan’s quarterly profit topped Wall Street forecasts, driven by higher sales of its medical aesthetics products including blockbuster wrinkle treatment botox.
Allergan said on Monday revenue from the aesthetics unit, which also sells products that can melt excess body fat, rose nearly 30 per cent in the three months ended March 31st.
The company’s shares rose about 2.4 percent to $166.7 in premarket trading. Sales of Botox, its biggest drug by revenue that is also used in treating chronic migraine and overactive bladders, jumped 14.5 percent to $817.3 million in the first quarter.
The Dublin-based company has been conducting a strategic review of its business and considering acquisitions and divestitures. Allergan backed away from a bid for Shire Plc earlier this month, after confirming reports that it was mulling an offer for the rare-disease specialist. The company managed to grow its revenue despite “exclusivity challenges” for older products, chief executive officer Brent Saunders said in a statement.
US Sales of Allergan’s eye drug, Restatsis, which is expected to face competition from cheaper drugs, fell 17.2 percent.
The company’s revenue overall rose 2.8 per cent to $3.67 billion, topping analysts’ average estimate of $3.59 billion, according to Thomson Reuters.
Net loss attributable to shareholders was $332.5 million or 99 cents per share, compared with $2.63 billion or $7.86 per share a year earlier.
Excluding one-time items, Allergan reported a profit of $3.74 per share, topping expectations of $3.36.
The company now expects 2018 adjusted earnings of $15.65 to $16.25 per share, slightly above its previous forecast of $15.25 to $16 per share. – Reuters