Allergan Stock Up In Pre-Market On Q1 Earnings Beat

Allergan plc’s (AGN – Analyst Report) shares were up in pre-market trading following the release of the company’s first-quarter 2016 results and a share buyback announcement.

First-quarter 2016 earnings came in at $3.04 per share, easily surpassing the Zacks Consensus Estimate of $2.99 and 15% above the year-ago period.

Revenues, however, missed expectations. Revenues came in at $3.79 billion, up 48% from the year-ago period, falling short of the Zacks Consensus Estimate of $3.96 billion.

Quarterly Details

Allergan has been treating its Global Generics business as discontinued operations from the third quarter of 2015 following its agreement to divest the business to Teva Pharmaceutical Industries Ltd. (TEVA – Analyst Report).

Branded product revenues were $3.4 billion, up 70% from the year-ago period. Products like Botox and Restasis brought in sales of $638 million and $314 million, respectively, with Botox seeing strong growth in both the aesthetic and therapeutic settings and Restasis benefiting from continued promotional efforts.

While Namenda IR sales plunged 97.6% to $5.8 million, Namenda XR sales came in at $173 million. The company started facing generic competition for Namenda IR from Jul 2015.

U.S. Brands revenues climbed 27% to $2.3 billion in the first quarter of 2016 with growth being driven by Allergan legacy products like Botox, Restasis, Lumigan/Ganfort and Combigan, and strong growth from Namenda XR, Linzess, LoLoestrin, Estrace Cream, Minastrin 24 and new product launches like Avycaz, Dalvance and Liletta.

U.S. Medical Aesthetics revenues came in at $450 million driven by strong growth in Botox and fillers like Juvederm. International Brands revenues were $673 million in the reported quarter compared with $119 million in the year-ago quarter. Growth was driven by Allergan products like Botox, Juvederm, and Ozurdex.

Anda revenues declined 34.2% during the quarter to $365 million reflecting the loss of Target Corporation business resulting from CVS Health’s acquisition of Target’s in store pharmacies.