Allergan Reports Better-Than-Expected Second-Quarter Results as Medicines Offset Weaker Therapeutics

Allergan (AGN) reported better-than-expected results for its fiscal second quarter on Tuesday, as the pharmaceutical company benefited from growth in its medicines and cosmetic products like Botox and Juvederm.

The Dublin, Ireland-based company that’s set to be acquired by AbbVie (ABBV) also raised its revenue outlook for the current year.

Net income on a non-GAAP basis dipped to $4.38 a share from $4.42 a share previously, while the consensus on Capital IQ was for $4.34 a share. Revenue was slightly lower at $4.09 billion, compared with $4.12 billion a year ago and topping the Street’s view for $3.93 billion.

“Allergan delivered steady growth in our key products including Botox, Vraylar, Juvederm, Lo Loestrin and Ozurdex while we continued to advance our pipeline,” said Brent Saunders, chief executive of the company. “Our second-quarter results demonstrate the continued momentum in our business and our focus on customers.”

Non-GAAP operating income fell 6.3% to $1.85 billion as revenue was dented by “divestitures, products that lost exclusivity and declines in textured breast implants due to a global recall,” Allergan said. Selling, general and administrative expenses rose 2.5% on a non-GAAP basis to $1.16 billion as the company spent more to support key products and launch new offerings.

Revenue in US specialized therapeutics fell 2.3% to $1.79 billion as demand growth in Botox and Juvederm for cosmetics was offset by slower sales of CoolSculpting for body fat reduction and breast implants.

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