Bengaluru — Botox maker Allergan reported higher than
expected third-quarter profit on Wednesday, driven by strength in its
medical aesthetics and eye care businesses.
Allergan’s shares rose 1.5% to $179.90 in premarket trading.
The company also slightly lifted its expectation for 2017 profit, saying it now expects adjusted earnings of $16.15-$16.45 per share, compared with a previous range of $16.05-$16.45.
Allergan’s medical aesthetics business generated $602.3m in sales in the third quarter to end-September, up nearly 55%, while sales of dry-eye drug Restasis came in at $382.3m, beating Cowen & Company’s estimate of $355m.
Allergan has in recent years been lobbying hard to protect Restasis — the hallmark of its top-earning eye-care business — from being ousted by generic rivals.
A Texas court last month invalidated Restasis patents on the grounds that they cover ideas that are obvious, making it possible for rival generics to hit the market by 2018.
Allergan said it took an impairment charge of $3.2bn related to Restasis, as well as $1.3bn in impairment charges related to Teva securities.
As a result, the company reported a net loss of $4.03bn or $12.07 per share, compared with a profit of $15.15bn, or $38.58 per share, a year earlier.
Excluding one-time items, Allergan earned $4.15 per share, topping analysts’ average estimate of $4.05, according to Thomson Reuters I/B/E/S.
Net revenue rose 11.4% to $4.03bn, matching analysts’ expectations.
Reuters
Allergan’s shares rose 1.5% to $179.90 in premarket trading.
The company also slightly lifted its expectation for 2017 profit, saying it now expects adjusted earnings of $16.15-$16.45 per share, compared with a previous range of $16.05-$16.45.
Allergan’s medical aesthetics business generated $602.3m in sales in the third quarter to end-September, up nearly 55%, while sales of dry-eye drug Restasis came in at $382.3m, beating Cowen & Company’s estimate of $355m.
Allergan has in recent years been lobbying hard to protect Restasis — the hallmark of its top-earning eye-care business — from being ousted by generic rivals.
A Texas court last month invalidated Restasis patents on the grounds that they cover ideas that are obvious, making it possible for rival generics to hit the market by 2018.
Allergan said it took an impairment charge of $3.2bn related to Restasis, as well as $1.3bn in impairment charges related to Teva securities.
As a result, the company reported a net loss of $4.03bn or $12.07 per share, compared with a profit of $15.15bn, or $38.58 per share, a year earlier.
Excluding one-time items, Allergan earned $4.15 per share, topping analysts’ average estimate of $4.05, according to Thomson Reuters I/B/E/S.
Net revenue rose 11.4% to $4.03bn, matching analysts’ expectations.
Reuters
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