Allergan Q4 Earnings Beat On Increase In Botox Sales

Allergan plc’s (AGN – Free Report) fourth-quarter 2017 earnings came in at $4.86 per share, beating the Zacks Consensus Estimate of $4.74 by 2.5%. Earnings rose 24.6% year over year driven by higher revenues and lower R&D costs.

Revenues came in at $4.33 billion, which beat the Zacks Consensus Estimate of $4.28 billion by 1.2%. Revenues rose 12% from the year-ago period.

Key products like Botox and Juvéderm collection of fillers and new products like Vraylar, Viberzi, and Namzaric did well in the quarter. However, sales erosion of Namenda XR and Aczone and loss of exclusivity, mainly from Asacol HD and Minastrin, hurt the top line.

Fourth-quarter revenues also benefited from the addition of Alloderm from LifeCell (January 2017) and CoolSculpting body contouring system from ZELTIQ (April 2017) acquisitions

Segment Discussion

The company reports revenues under three segments – U.S. General Medicine, U.S. Specialized Therapeutics, and International.

U.S. Specialized Therapeutics’ net revenues increased 19.8% to $1.88 billion driven by continued strong performance of its facial aesthetics products, Botox and Juvéderm Collection of fillers.

Botox (cosmetic) raked in sales of $228.4 million (up 14.5%). Botox Therapeutic revenues were $367.2 million, up 17.1%. In addition, Juvéderm Collection of fillers rose 14.7% to $139.5 million. In Eye Care, Ozurdex sales increased 16.8% to $26.4 million while blockbuster dry-eye drug, Restasis’ sales rose 1.8% to $400.3 million. In Plastic Surgery, breast implants sales increased 21.5%, which contributed to the upside. In Medical Dermatology, Aczone sales declined 37.9% in the quarter to $38 million.

LifeCell’s Alloderm added $97.9 million while ZELTIQ’s CoolSculpting business added $94.4 million to sales in the fourth quarter.

U.S. General Medicine net revenues were flat at $1.5 billion in the reported quarter with sales declining in the Diversified Brands and Women’s Health franchises. Anti-Infectives sales rose 14.8% to $66.6 million, Gastrointestinal rose 2% to $453.2 million and Central Nervous System sales rose 2.9% to $349 million.