ALLERGAN PLC DUBLIN, Aug. 3, 2017 /PRNewswire/ -- Allergan plc (NYSE: AGN) today reported its second quarter 2017 continuing operations performance.
Second Quarter 2017 Continuing Operations
(unaudited; $ in millions, except Q2 '17 Q2 '16 Q1 '17 Q2 '17 v Q2 Q2 '17 v Q1 Six Six 2017
per share amounts) '16 '17 Months Months v
Ended Ended 2016
June 30, June 30,
2017 2016
--- ---- ----
Total net revenues** $4,007.4 $3,684.8 $3,572.9 8.8% 12.2% $7,580.3 $7,084.1 7.0%
------------------- -------- -------- -------- --- ---- -------- -------- ---
Operating (Loss) $(902.4) $(487.6) $(906.0) 85.1% (0.4)% $(1,808.4) $(659.1) 174.4%
--------------- ------- ------- ------- ---- ----- --------- ------- -----
Diluted EPS - Continuing Operations $(2.35) $(1.25) $(7.85) 88.0% (70.1)% $(10.20) $(1.66) 514.5%
----------------------------------- ------ ------ ------ ---- ------ ------- ------ -----
SG&A Expense $1,395.0 $1,210.0 $1,185.2 15.3% 17.7% $2,580.2 $2,306.3 11.9%
------------ -------- -------- -------- ---- ---- -------- -------- ----
R&D Expense $489.4 $636.5 $759.9 (23.1)% (35.6)% $1,249.3 $1,039.6 20.2%
----------- ------ ------ ------ ------ ------ -------- -------- ----
Continuing Operations Tax Rate 44.8% 37.9% 17.2% 6.9% 27.6% 25.4% 56.4% (31.0)%
------------------------------ ---- ---- ---- --- ---- ---- ---- ------
Non-GAAP Adjusted Operating Income $1,887.2 $1,858.2 $1,617.8 1.6% 16.7% $3,505.0 $3,591.6 (2.4)%
---------------------------------- -------- -------- -------- --- ---- -------- -------- -----
Non-GAAP Performance Net Income Per Share $4.02 $3.35 $3.35 20.0% 20.0% $7.37 $6.34 16.2%
----------------------------------------- ----- ----- ----- ---- ---- ----- ----- ----
Non-GAAP Adjusted EBITDA $2,027.2 $1,934.8 $1,734.2 4.8% 16.9% $3,761.4 $3,750.2 0.3%
------------------------ -------- -------- -------- --- ---- -------- -------- ---
Non-GAAP SG&A Expense $1,216.5 $1,038.8 $1,105.9 17.1% 10.0% $2,322.4 $2,007.8 15.7%
--------------------- -------- -------- -------- ---- ---- -------- -------- ----
Non-GAAP R&D Expense $393.9 $345.0 $393.9 14.2% 0.0% $787.8 $621.5 26.8%
-------------------- ------ ------ ------ ---- --- ------ ------ ----
Non-GAAP Continuing Operations Tax Rate 13.1% 7.1% 13.2% 6.0% (0.1)% 13.1% 8.3% 4.8%
--------------------------------------- ---- --- ---- --- ----- ---- --- ---
** Excludes the reclassification of revenues of ($24.4) million in Q2 2016 related to the portion of Allergan product revenues sold by our former Anda Distribution Business into discontinued operations. Excludes the reclassification of revenues of ($56.3) million in the six months ended June 30, 2016 related to the portion of Allergan product revenues sold by our former Anda Distribution Business into discontinued operations.
Total net revenues were $4.0 billion, a 9 percent increase from the prior year quarter, driven by BOTOX(®), JUVEDERM Collection(®), the addition of ALLODERM(®) and CoolSculpting(®) and new products, including VRAYLAR(TM), NAMZARIC(®) and VIBERZI(®). The increase was partially offset by lower revenues from ASACOL(®) HD and MINASTRIN(®) due to the loss of patent exclusivity, the continuing decline in NAMENDA XR(®) and lower revenues from RESTASIS(®), which was negatively impacted by trade buying patterns in the quarter.
"At the midpoint of 2017, Allergan is delivering strong results from excellent execution by our 18,000 colleagues. With our strong first half performance and solid outlook for the remainder of the year, we are raising our full-year guidance," said Brent Saunders, Chairman and CEO of Allergan. "Revenue growth in the second quarter was powered by significant year-over-year gains from many of our top products, solid contribution from our launch products and successful integrations of LifeCell and ZELTIQ(®). And our R&D team is making progress on every front, especially in advancing our six 'star' R&D programs, including the initiation of a Phase 3 study for cenicriviroc, or CVC, for the treatment of NASH."
"I'm proud of our colleagues who bring forward new ideas and build bridges with our customers to improve patient care. They act fast and drive results that make a difference," added Saunders.
Second-Quarter 2017 Performance
GAAP operating loss from continuing operations in the second quarter 2017 was $902.4 million, which includes the impact of amortization, in-process research and development (R&D) impairments, foreign exchange transactional losses and an increase in sales and marketing expenses. Non-GAAP adjusted operating income from continuing operations in the second quarter of 2017 was $1.9 billion, an increase of 1.6 percent versus prior year quarter.
Operating Expenses
Total GAAP Selling, General and Administrative (SG&A) Expense was $1.4 billion for the second quarter 2017, compared to $1.2 billion in the prior year quarter. Total non-GAAP SG&A expense increased to $1.2 billion for the second quarter 2017, compared to $1.0 billion in the prior year period, primarily due to a period-over-period foreign exchange transactional loss of $114.7 million, costs associated with the recently acquired ZELTIQ(® )and LifeCell businesses and additional selling and promotional expenses for key products. GAAP R&D investment for the second quarter of 2017 was $489.4 million, compared to $636.5 million in the second quarter of 2016. Non-GAAP R&D investment for the second quarter 2017 was $393.9 million, an increase of 14.2 percent over the prior year quarter, due to increased costs associated with clinical programs.
The Company recorded restructuring charges of $65.6 million in the second quarter of 2017 primarily relating to the planned SG&A cost management initiatives due to changing industry dynamics and in advance of anticipated patent expirations. In addition, it includes planned optimization of our R&D infrastructure and prioritization of the R&D portfolio to enable increased investment in the Company's highest potential projects.
Amortization, Other Income (Expense) Net, Tax and Capitalization
Amortization expense from continuing operations for the second quarter 2017 was $1.8 billion, compared to $1.6 billion in the second quarter of 2016. Included within other income (expense), net in the three months ended June 30, 2017 is a net charge of $161.5 million for the early tender payment and non-cash write-off of premiums and debt fees related to our repurchased notes. The Company's GAAP continuing operations tax rate was 44.8 percent in the second quarter 2017. The Company's non-GAAP adjusted continuing operations tax rate was 13.1 percent in the second quarter 2017. As of June 30, 2017, Allergan had cash and marketable securities of $5.8 billion and outstanding indebtedness of $30.2 billion.
Discontinued Operations and Continuing Operations
As a result of the divestiture of the Company's generics business and the divestiture of the Company's Anda Distribution business in 2016, the financial results of those businesses have been reclassified to discontinued operations for all periods presented in our consolidated financial statements up through the date of the divestitures. Included in segment revenues in the three months ended June 30, 2016 are product sales that were sold by the Anda Distribution business once the Anda Distribution business had sold the product to a third-party customer. These sales are included in segment results and are excluded from total continuing operations revenues through a reduction to Corporate revenues. Cost of sales for these products in discontinued operations is equal to our average third-party cost of sales for third-party branded products distributed by Anda Distribution.
Second Quarter 2017 Business Segment Results
U.S. Specialized Therapeutics
Segment Information
(Unaudited; $ in millions) Three Months Ended June 30,
---------------------------
2017 2016 (1)
---- -------
Eye Care $600.1 $636.1
Total Medical Aesthetics 643.9 419.8
Facial Aesthetics 349.2 320.2
Plastic Surgery 61.3 52.8
Regenerative Medicine 115.8 -
Body Contouring 78.9 -
Skin Care 38.7 46.8
Medical Dermatology 81.8 97.1
Neuroscience & Urology 372.6 326.3
Other Revenues 16.6 9.6
---- ---
Net revenues $1,715.0 $1,488.9
-------- --------
Operating expenses:
Cost of sales(2) 128.8 75.1
Selling and marketing 356.8 287.8
General and administrative 49.8 46.0
---- ----
Segment contribution $1,179.6 $1,080.0
======== ========
Segment margin 68.8% 72.5%
Segment gross margin(3) 92.5% 95.0%
(1) Includes revenues earned that were distributed through our former Anda Distribution business to third party customers.
(2) Excludes amortization and impairment of acquired intangibles including product rights as well as indirect cost of
sales not attributable to segment results.
(3) Defined as net revenues less segment related cost of sales as a percentage of net revenues.
U.S. Specialized Therapeutics net revenues in the second quarter of 2017 were $1.72 billion, an increase of 15.2 percent versus prior year quarter, driven primarily by the addition of CoolSculpting(®) and ALLODERM(®) as well as growth from BOTOX(®), offset by decreased revenues from RESTASIS(®), ACZONE(®) and TAZORAC(®).
Eye Care
-- RESTASIS(®) net revenues of $336.4 million in the second quarter of
2017 decreased 9.4 percent versus the prior year quarter, primarily
driven by trade buying patterns. RESTASIS(®) volume demand remains
stable.
-- The Glaucoma franchise experienced a modest decline, with
ALPHAGAN(®)/COMBIGAN(®) net revenues in the second quarter of 2017
remaining stable at $96.4 million, while LUMIGAN(®) net revenues of
$79.0 million declined 2 percent versus prior year quarter, impacted
primarily by generic competition.
-- OZURDEX(®) net revenues in the second quarter of 2017 increased 15.8
percent from the prior year quarter to $24.9 million, driven by
continued strong demand from the diabetic macular edema indication.
Medical Aesthetics
-- The Facial Aesthetics franchise continues to deliver strong growth with
revenues increasing 9.1 percent versus prior year quarter.
-- BOTOX(®) Cosmetic net revenues in the second quarter of 2017 were
$210.3 million, up 10.7 percent versus prior year quarter,
reflecting continued strong volume growth.
-- JUVÉDERM(®) Collection (defined as JUVÉDERM(®), VOLUMA(®) and
other fillers) net revenues in the second quarter of 2017 were
$126.2 million, up 7.3 percent versus prior year quarter, driven by
continued strong demand and market share gains.
-- KYBELLA(®) net revenues in the second quarter of 2017 were $12.7
million, unchanged from the prior year quarter.
-- Regenerative Medicine
-- ALLODERM(®) net revenues in the second quarter of 2017 were $84.6
million
-- STRATTICE(TM) net revenues in the second quarter of 2017, a
component of "other" Regenerative Medicine, were $29.7 million.
-- Body Contouring
-- CoolSculpting(®) net revenues (including both CoolSculpting(®)
Systems/Applicators and Consumables) in the second quarter of 2017
were $78.9 million following the close of the ZELTIQ(® )acquisition
on April 28, 2017.
-- Plastic Surgery
-- Breast implant net revenues in the second quarter of 2017 were $61.3
million, an increase of 18.6 percent versus prior year quarter,
driven by higher demand following the launch of INSPIRA(TM) breast
implants.
-- Skin Care
-- SkinMedica(®) net revenues in the second quarter of 2017 were $25.4
million, a decrease of 12.7%, primarily due to a higher comparable
base in the second quarter of 2016 with the launch of the HA(5)
product, continued customer mix shift and lower net pricing.
Medical Dermatology
-- ACZONE(®) net revenues in the second quarter of 2017 were $41.0
million, a decrease of 24.2%, primarily impacted by generic pressure on
the acne category and trade buying patterns.
-- TAZORAC(®) net revenues in the second quarter of 2017 were $12.8
million, a decrease of 45.3%, primarily due to generic competition.
Neurosciences & Urology
-- BOTOX(®) Therapeutic net revenues in the second quarter of 2017 were
$346.9 million, up 17.2 percent versus prior year quarter, driven by
continued strong demand across chronic migraine, overactive bladder and
adult spasticity indications.
-- RAPAFLO(®) net revenues in the second quarter of 2017 were $25.7
million, a decrease of 12.6 percent versus prior year quarter, impacted
by lower demand.
U.S. Specialized Therapeutics gross margin for the second quarter of 2017 was 92.5 percent, impacted by the contribution of the LifeCell and ZELTIQ(®) acquisitions. SG&A expenses in the segment for the second quarter 2017 were $406.6 million. Selling and marketing expenses in the segment for the second quarter 2017 were $356.8 million, an increase of 24.0 percent versus prior year quarter mainly attributed to the contribution of the LifeCell and ZELTIQ(®) acquisitions, as well as increased promotional spending for key products. General and administrative expenses at the segment level for the second quarter 2017 were $49.8 million, an increase of 8.3 percent versus prior year quarter mainly attributed to the LifeCell and ZELTIQ(®) acquisitions. Segment contribution for the second quarter 2017 remained strong at $1.2 billion, an increase of 9.2 percent versus the prior year quarter, driven by increased revenues following recent acquisitions.
U.S. General Medicine
Segment Information
(Unaudited; $ in millions) Three Months Ended June 30,
---------------------------
2017 2016 (1)
---- -------
Central Nervous System $346.6 $317.5
Gastrointestinal 410.8 442.0
Women's Health 248.0 296.1
Anti-Infectives 67.8 63.1
Diversified Brands 305.5 308.5
Other Revenues 49.0 21.9
---- ----
Net revenues $1,427.7 $1,449.1
-------- --------
Operating expenses:
Cost of sales(2) 203.2 214.9
Selling and marketing 288.1 332.7
General and administrative 41.3 43.7
---- ----
Segment contribution $895.1 $857.8
====== ======
Segment margin 62.7% 59.2%
Segment gross margin(3) 85.8% 85.2%
(1) Includes revenues earned that were distributed through our former Anda Distribution business to third party
customers.
(2) Excludes amortization and impairment of acquired intangibles including product rights as well as indirect cost
of sales not attributable to segment results.
(3) Defined as net revenues less segment related cost of sales as a percentage of net revenues.
U.S. General Medicine net revenues in the second quarter 2017 were $1.43 billion, a decrease of 1.5 percent versus the prior year quarter, impacted primarily by lower revenues from generic competition to ASACOL(®), MINASTRIN(®) 24 and NAMENDA XR( ®), offset primarily by strong growth from VRAYLAR(TM), VIBERZI(®), NAMZARIC(®), LINZESS(®) and Lo LOESTRIN(®).
Central Nervous System
-- Allergan CNS franchise net revenues of $346.6 million increased 9.2
percent versus the prior year quarter as a result of continued strong
growth from VRAYLAR(TM) and NAMZARIC(®), offset by of lower revenues
from NAMENDA(®) XR.
-- NAMENDA XR(®) net revenues in the second quarter of 2017 were $118.7
million, a decrease of 28.7 percent versus the prior year quarter,
driven primarily by lower demand as a result of a reduction in
promotional support and continued conversion to NAMZARIC(®), as well as
lower net pricing.
-- NAMZARIC(®) net revenues in the second quarter of 2017 increased to
$33.4 million from $12.8 million in the prior year quarter driven by
continued conversion and increased demand following an expanded label
with new dosages for the product allowing patients to begin combination
therapy on NAMZARIC(®).
-- VRAYLAR(TM) net revenues in the second quarter of 2017 were strong at
$66.3 million, reflecting its continued rapid acceptance in its second
year post-launch.
-- VIIBRYD(®)/FETZIMA(®) net revenues in the second quarter of 2017 were
$85.2 million, an increase of 4.3 percent versus the prior year quarter.
-- SAPHRIS(®) net revenues in the second quarter of 2017 were $43.0
million, an increase of 4.1 percent versus the prior year quarter.
Gastrointestinal
-- LINZESS(®) net revenues in the second quarter of 2017 were $167.8
million, an increase of 11.5 percent versus prior year quarter, driven
by strong demand and continued OTC conversion.
-- VIBERZI(®) net revenues in the second quarter of 2017 were $41.3
million, driven by continued demand growth.
-- ASACOL(®)/DELZICOL(®) net revenues in the second quarter of 2017 were
$45.6 million, a decrease of 61.9 percent versus the prior year quarter,
impacted by generic entry for ASACOL(® )HD and a decline in demand for
DELZICOL(®).
-- ZENPEP(®) net revenues in the second quarter of 2017 were $50.5
million, an increase of 17.4% versus the prior year quarter, driven by
continued strong demand.
Women's Health
-- Lo LOESTRIN(®) net revenues in the second quarter of 2017 were $113.0
million, up 11.9 percent versus prior year quarter, driven by strong
prescription growth. Lo LOESTRIN(®) remains the number one prescribed
branded oral contraceptive.
-- ESTRACE(®) Cream net revenues in the second quarter were $90.1 million,
a decrease of 7.3 percent versus prior year quarter, impacted by lower
net pricing and trade buying patterns.
-- MINASTRIN(®) 24 net revenues in the second quarter of 2017 were $11.4
million, a decrease of 86.3 percent versus prior year quarter, impacted
by loss of patent exclusivity for MINASTRIN(®) 24 on March 15, 2017.
-- TAYTULLA(TM) net revenues, a component of "other" Women's Health, were
$17.1 million in the second quarter of 2017 following launch of this new
oral contraceptive soft gel product in November 2016.
Anti-Infectives
-- TEFLARO(®) net revenues in the second quarter of 2017 were $33.0
million, a decrease of 6.3 percent versus prior year quarter, driven by
lower demand.
-- DALVANCE(®) net revenues in the second quarter of 2017 were $15.2
million driven by increasing demand.
-- AVYCAZ(®) net revenues in the second quarter of 2017 were $14.5
million, driven by increasing demand.
Diversified Brands and Other Products
-- Diversified Brands net revenues in the second quarter of 2017 were
$305.5 million, a decrease of 1.0 percent versus prior year quarter.
-- BYSTOLIC(®)/BYVALSON(®) net revenues in the second quarter of 2017
were $150.7 million, versus $150.3 million in the prior year quarter.
BYSTOLIC(®) remains the flagship product of Allergan's primary care
sales force.
U.S. General Medicine gross margin for the second quarter of 2017 increased to 85.8 percent due to the Company reacquiring rights to select licensed products in the segment, which had the impact of lowering royalty expense on these products. SG&A expenses in the segment were $329.4 million in the second quarter of 2017. Selling and marketing expenses in the segment were $288.1 million, a decrease of 13.4 percent versus prior year quarter due to decreased salesforce compensation and promotional spending. General and administrative expenses decreased to $41.3 million at the segment level. Segment contribution for the second quarter 2017 was $895.1 million.
International
Segment Information
(Unaudited; $ in millions) Three Months Ended June 30,
---------------------------
2017 2016
---- ----
Eye Care $322.0 $318.7
Total Medical Aesthetics 358.0 284.1
Facial Aesthetics 287.5 240.6
Plastic Surgery 41.5 40.3
Regenerative Medicine 3.6 -
Body Contouring 22.7 -
Skin Care 2.7 3.2
Botox Therapeutics and Other 151.2 141.1
Other Revenues 27.3 13.1
---- ----
Net revenues $858.5 $757.0
------ ------
Operating expenses:
Cost of sales(1) 125.0 115.0
Selling and marketing 238.9 207.2
General and administrative 28.3 30.9
---- ----
Segment contribution $466.3 $403.9
====== ======
Segment margin 54.3% 53.4%
Segment gross margin (2) 85.4% 84.8%
(1) Excludes amortization and impairment of acquired intangibles including product rights as well as indirect cost
of sales not attributable to segment results.
(2) Defined as net revenues less segment related cost of sales as a percentage of net revenues.
International net revenues were $858.5 million, an increase of 16.2 percent versus prior year quarter excluding foreign exchange impact, driven by growth in Facial Aesthetics, BOTOX(®) Therapeutic and the addition of LifeCell and CoolSculpting(®) in Medical Aesthetics.
Medical Aesthetics
-- Facial Aesthetics
-- BOTOX(®) Cosmetic revenues in the second quarter of 2017 were
$148.2 million, an increase of 15.5 percent versus prior year
quarter excluding foreign exchange impact, driven by continued
strong growth across most regions.
-- JUVÉDERM(®) Collection revenues in the second quarter of 2017 were
$137.3 million, an increase of 30.2 percent versus prior year
quarter excluding foreign exchange impact, reflecting continued
strong performance across all regions.
-- Plastic Surgery
-- Breast implant revenues in the second quarter of 2017 were $41.1
million, an increase of 4.4 percent versus prior year quarter,
excluding foreign exchange impact.
-- Body Contouring
-- CoolSculpting(®) net revenues (including both CoolSculpting(®)
Systems/Applicators and Consumables) in the second quarter of 2017
were $22.7 million following the close of the ZELTIQ(® )acquisition
on April 28, 2017.
Eye Care
-- LUMIGAN(®)/GANFORT(®) and ALPHAGAN(®)/COMBIGAN(®) revenues in the
second quarter of 2017 were $94.4 million and $42.7 million,
respectively, reflecting continued stable performance across Allergan's
glaucoma product franchise.
-- OZURDEX(®) revenues in the second quarter of 2017 were $51.2 million,
up 15.1 percent versus prior year quarter excluding foreign exchange
impact, reflecting strong demand across all regions.
-- OPTIVE(®) revenues in the second quarter of 2017 were $27.6 million, up
6.2 percent versus prior year quarter excluding foreign exchange impact,
reflecting strong demand across most regions.
Botox Therapeutic & Other Products
-- BOTOX(®) Therapeutic revenues in the second quarter of 2017 were $93.8
million, up 13.7 percent versus prior year quarter excluding foreign
exchange impact, reflecting continued volume growth across most regions.
-- ASACOL(®)/DELZICOL(®) revenues in the second quarter of 2017 were
$12.8 million, a decrease of 26.4 percent versus prior year quarter
excluding foreign exchange impact.
International gross margin for the second quarter of 2017 was 85.4 percent. SG&A expenses in the segment were $267.2 million in the second quarter of 2017. Selling and marketing expenses in the segment were $238.9 million, an increase of 17.7 percent versus prior year excluding foreign exchange impact, primarily due to investments in key brands and market expansion and the addition of ZELTIQ(®). Segment contribution was $466.3 million.
Corporate Function
Included within our corporate function are shared costs, including above site and unallocated costs associated with running our global manufacturing facilities, corporate general and administrative expenses and corporate initiatives.
Pipeline Update
Allergan R&D continues to deliver on its pipeline. Key development highlights included:
U.S. and International Branded Product Approvals and Launches
-- Allergan announced the launch of the over-the-counter (OTC) artificial
tear REFRESH OPTIVE(®) MEGA-3, the latest innovation in the REFRESH(®)
portfolio that fortifies the lipid layer when Meibomian Gland
Dysfunction (MGD) patients suffer from Dry Eye.
Regulatory Milestones & Clinical Updates
-- Allergan has initiated patient enrollment in a Phase 3 study of
cenicriviroc (CVC). The study is being conducted to confirm the efficacy
and safety of CVC for the treatment of liver fibrosis in adult subjects
with NASH.
-- Allergan and Amgen Inc. announced that the Oncologic Drugs Advisory
Committee of the FDA review data supporting the Biologics License
Application (BLA) for ABP 215, a biosimilar candidate to Avastin(®).
Following the review, the Advisory Committee unanimously recommended ABP
215 for FDA approval.
Allergan Raises Full Year 2017 Continuing Operations Guidance
This update to Allergan's full year 2017 estimates are based on management's current belief about prescription trends, pricing levels, inventory levels and the anticipated timing of future product launches and events. Continuing operations includes the U.S. Specialized Therapeutics, U.S. General Medicine and International segments.
The following guidance includes the following assumptions:
-- Full-Year 2017:
-- Net Revenues reflect no NAMENDA XR(®) generic launch until the
first quarter of 2018 and no impact of foreign exchange headwind to
revenue
-- Non-GAAP Gross Margin reflects better than expected first half 2017
gross margins
-- Non-GAAP SG&A reflects increase in G&A due to unfavorable
transactional foreign exchange impact
-- Non-GAAP Net Interest Expense assumes Teva dividend income in the
third quarter of 2017
-- Other prior assumptions remain unchanged including, but not limited
to:
-- RESTASIS(®) remains stable
-- No ESTRACE(®) Cream generic entry in 2017
-- R&D Expense reflects faster clinical program enrollment, lower
than expected attrition
-- Non-GAAP Average Share count assumes Accelerated Share
Repurchase settlement in the third quarter of 2017
Current Guidance Previous Guidance
---------------- -----------------
Full Year 2017 GAAP NON-GAAP GAAP NON-GAAP
-------------- ---- -------- ---- --------
Total Net Revenues $15,850 - $16,050 $15,850 - $16,050 $15,800 - $16,000 $15,800 - $16,000
million million million million
--- ------- ------- ------- -------
Gross Margin (as a % of revenues) ~86.0% - 86.5% ~86.5-87.0% ~84.5% - 85.5% ~86.0-87.0%
-------------------------------- ------------- ---------- ------------- ----------
SG&A Expense ~$4.950 - $5.050 ~$4.500 - $4.600 ~$4.750 - $4.850 ~$4.450 - $4.550
billion billion billion billion
--- ------- ------- ------- -------
R&D Expense ~$2.15 billion ~$1.60 billion ~$2.10 billion ~$1.60 billion
----------- -------------- -------------- -------------- --------------
Net Interest Expense/Other Income ~$3.05 billion ~$1.00 billion ~$3.00 billion ~$1.075 billion
--------------------------------- -------------- -------------- -------------- ---------------
Tax Rate ~25.5% ~13.0% ~19.0% ~13.0%
-------- ----- ----- ----- -----
Net Income / (Loss) Per Share(1) $(10.80) - $(11.20) $16.05 - $16.45 $(9.70) - $(10.20) $15.85 - $16.35
-------------------------------- ------------------ --------------- ----------------- ---------------
Average 2017 Share Count(2) ~334 million shares ~356 million shares ~334 million shares ~356 million shares
-------------------------- ------------------- ------------------- ------------------- -------------------
1 GAAP represents EPS for ordinary shareholders. GAAP (loss) per share includes the impact of amortization of approximately $7.05 billion, IPR&D impairments and asset sales and impairments, net of $1.1 billion and dividends on preferred shares of
approximately $278 million. Non-GAAP represents performance net income per share.
2 GAAP EPS shares do not include dilution of shares as earnings are a net loss. As such, the dilution impact of preferred share conversion and outstanding equity awards is not included in the forecasted shares.
Second Quarter 2017 Conference Call and Webcast Details
Allergan will host a conference call and webcast today, Thursday, August 3, at 8:30 a.m. Eastern Time to discuss its second quarter 2017 results. The dial-in number to access the call is U.S./Canada (877) 251-7980, International (706) 643-1573, and the conference ID is 65876037. A taped replay of the conference call will also be available beginning approximately two hours after the call's conclusion, and will remain available through 11:30 p.m. Eastern Time on September 4, 2017. The replay may be accessed by dialing (855) 859-2056 and entering the conference ID 65876037. From international locations, the replay may be accessed by dialing (404) 537-3406 and entering the same conference ID.
To access the live webcast, please visit Allergan's Investor Relations Web site at https://www.allergan.com/investors. A replay of the webcast will also be available.
About Allergan plc
Allergan plc (NYSE: AGN), headquartered in Dublin, Ireland, is a bold, global pharmaceutical company and a leader in a new industry model - Growth Pharma. Allergan is focused on developing, manufacturing and commercializing branded pharmaceutical, device, biologic, surgical and regenerative medicine products for patients around the world.
Allergan markets a portfolio of leading brands and best-in-class products for the central nervous system, eye care, medical aesthetics and dermatology, gastroenterology, women's health, urology and anti-infective therapeutic categories.
Allergan is an industry leader in Open Science, a model of research and development, which defines our approach to identifying and developing game-changing ideas and innovation for better patient care. With this approach, Allergan has built one of the broadest development pipelines in the pharmaceutical industry with 70+ mid-to-late stage pipeline programs currently in development.
Allergan's success is powered by our more than 18,000 global colleagues' commitment to being Bold for Life. Together, we build bridges, power ideas, act fast and drive results for our customers and patients around the world by always doing what is right.
With commercial operations in approximately 100 countries, Allergan is committed to working with physicians, healthcare providers and patients to deliver innovative and meaningful treatments that help people around the world live longer, healthier lives every day.
For more information, visit Allergan's website at www.Allergan.com.
Forward-Looking Statement
Statements contained in this press release that refer to future events or other non-historical facts are forward-looking statements that reflect Allergan's current perspective on existing trends and information as of the date of this release. Actual results may differ materially from Allergan's current expectations depending upon a number of factors affecting Allergan's business. These factors include, among others, the difficulty of predicting the timing or outcome of FDA approvals or actions, if any; the impact of competitive products and pricing; market acceptance of and continued demand for Allergan's products; difficulties or delays in manufacturing; and other risks and uncertainties detailed in Allergan's periodic public filings with the Securities and Exchange Commission, including but not limited to Allergan's Annual Report on Form 10-K for the year ended December 31, 2016 and Allergan's Quarterly Report on Form 10-Q for the period ended March 31, 2017. Except as expressly required by law, Allergan disclaims any intent or obligation to update these forward-looking statements.
The following presents Allergan plc's statement of operations for the three and six months ended June 30, 2017 and 2016:
Table 1
ALLERGAN PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in millions, except per share amounts)
Three Months Ended Six Months Ended
June 30 June 30,
------- --------
2017 2016 2017 2016
---- ---- ---- ----
Net revenues $4,007.4 $3,684.8 $7,580.3 $7,084.1
-------- -------- -------- --------
Operating expenses:
Cost of sales (excludes amortization and impairment of
acquired intangibles including product rights) 550.2 441.5 1,000.6 918.9
Research and development 489.4 636.5 1,249.3 1,039.6
Selling, general and administrative 1,395.0 1,210.0 2,580.2 2,306.3
Amortization 1,757.9 1,633.1 3,493.9 3,222.8
In-process research and development impairments 703.3 268.9 1,043.3 274.9
Asset sales and impairments, net 14.0 (17.6) 21.4 (19.3)
---- ----- ---- -----
Total operating expenses 4,909.8 4,172.4 9,388.7 7,743.2
------- ------- ------- -------
Operating (loss) (902.4) (487.6) (1,808.4) (659.1)
------ ------ -------- ------
Non-operating income (expense):
Interest income 16.6 2.5 41.9 5.4
Interest (expense) (277.4) (345.8) (567.1) (678.6)
Other income (expense), net (133.5) 150.1 (2,056.3) 150.6
------ ----- -------- -----
Total other income (expense), net (394.3) (193.2) (2,581.5) (522.6)
------ ------ -------- ------
(Loss) before income taxes and noncontrolling interest (1,296.7) (680.8) (4,389.9) (1,181.7)
(Benefit) for income taxes (581.2) (258.2) (1,113.3) (666.9)
------ ------ -------- ------
Net (loss) from continuing operations, net of tax (715.5) (422.6) (3,276.6) (514.8)
(Loss) / income from discontinued operations, net of tax (8.4) (77.3) (11.5) 271.3
---- ----- ----- -----
Net (loss) (723.9) (499.9) (3,288.1) (243.5)
------ ------ -------- ------
(Income) attributable to noncontrolling interest (2.0) (1.8) (3.0) (2.5)
---- ---- ---- ----
Net (loss) attributable to shareholders (725.9) (501.7) (3,291.1) (246.0)
------ ------ -------- ------
Dividends on preferred shares 69.6 69.6 139.2 139.2
---- ---- ----- -----
Net (loss) attributable to ordinary shareholders $(795.5) $(571.3) $(3,430.3) $(385.2)
======= ======= ========= =======
(Loss) / income per share attributable to ordinary shareholders -
basic:
Continuing operations $(2.35) $(1.25) $(10.20) $(1.66)
Discontinued operations (0.02) (0.19) (0.03) 0.69
----- ----- ----- ----
Net (loss) per share - basic $(2.37) $(1.44) $(10.23) $(0.97)
====== ====== ======= ======
(Loss) / income per share attributable to ordinary shareholders -
diluted:
Continuing operations $(2.35) $(1.25) $(10.20) $(1.66)
Discontinued operations (0.02) (0.19) (0.03) 0.69
----- ----- ----- ----
Net (loss) per share - diluted $(2.37) $(1.44) $(10.23) $(0.97)
====== ====== ======= ======
Dividends per ordinary share $0.70 $ - $1.40 $ -
Weighted average shares outstanding:
Basic 335.2 395.6 335.2 395.2
===== ===== ===== =====
Diluted 335.2 395.6 335.2 395.2
===== ===== ===== =====
The following table details Allergan plc's product revenue for significant promoted products globally, within the U.S., and international for the three and six months ended June 30, 2017 and 2016.
Table 2
ALLERGAN PLC
NET REVENUES TOP GLOBAL PRODUCTS
(Unaudited; in millions)
Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Movement
-------------------------------- -------------------------------- --------
US Specialized US General International Corporate Total US Specialized US General International Corporate Total Total Total Change
Therapeutics Medicine Therapeutics Medicine Percentage
Change
------
Botox(R) $574.0 $ - $242.1 $ - $816.1 $502.2 $ - $217.5 $ - $719.7 $96.4 13.4%
Restasis(R) 336.4 - 17.3 - 353.7 371.3 - 19.3 - 390.6 (36.9) (9.4)%
Juvederm Collection ** 126.2 - 137.3 - 263.5 117.6 - 107.3 - 224.9 38.6 17.2%
Lumigan(R)/Ganfort(R) 79.0 - 94.4 - 173.4 80.6 - 94.5 - 175.1 (1.7) (1.0)%
Linzess(R)/Constella(R) - 167.8 5.5 - 173.3 - 150.5 4.6 - 155.1 18.2 11.7%
Bystolic(R) /Byvalson(R) - 150.7 0.5 - 151.2 - 150.3 0.4 - 150.7 0.5 0.3%
Alphagan(R)/Combigan(R) 96.4 - 42.7 - 139.1 96.0 - 44.2 - 140.2 (1.1) (0.8)%
Eye Drops 50.7 - 70.7 - 121.4 49.1 - 72.0 - 121.1 0.3 0.2%
Namenda XR(R) - 118.7 - - 118.7 - 166.5 - - 166.5 (47.8) (28.7)%
Lo Loestrin(R) - 113.0 - - 113.0 - 101.0 - - 101.0 12.0 11.9%
Breast Implants 61.3 - 41.1 - 102.4 51.7 - 40.2 - 91.9 10.5 11.4%
Estrace(R) Cream - 90.1 - - 90.1 - 97.2 - - 97.2 (7.1) (7.3)%
Alloderm(R) 84.6 - 2.3 - 86.9 - - - - - 86.9 n.a.
Viibryd(R)/Fetzima(R) - 85.2 0.7 - 85.9 - 81.7 0.1 - 81.8 4.1 5.0%
Ozurdex (R) 24.9 - 51.2 - 76.1 21.5 - 45.7 - 67.2 8.9 13.2%
Vraylar(TM) - 66.3 - - 66.3 - 11.1 - - 11.1 55.2 n.m.
Coolsculpting(R) Consumables 47.9 - 12.5 - 60.4 - - - - - 60.4 n.a.
Carafate (R) /Sulcrate (R) - 59.2 0.7 - 59.9 - 50.3 0.6 - 50.9 9.0 17.7%
Asacol(R)/Delzicol(R) - 45.6 12.8 - 58.4 - 119.8 11.0 - 130.8 (72.4) (55.4)%
Zenpep(R) - 50.5 - - 50.5 - 43.0 - - 43.0 7.5 17.4%
Saphris(R) - 43.0 - - 43.0 - 41.3 - - 41.3 1.7 4.1%
Canasa(R)/Salofalk(R) - 38.4 4.3 - 42.7 - 46.7 4.6 - 51.3 (8.6) (16.8)%
Armour Thyroid - 42.0 - - 42.0 - 40.6 - - 40.6 1.4 3.4%
Viberzi(R) - 41.3 0.1 - 41.4 - 20.4 - - 20.4 21.0 102.9%
Coolsculpting(R) Systems & Add On Applicators 31.0 - 10.2 - 41.2 - - - - - 41.2 n.a.
Aczone(R) 41.0 - 0.1 - 41.1 54.1 - 0.1 - 54.2 (13.1) (24.2)%
Namzaric(R) - 33.4 - - 33.4 - 12.8 - - 12.8 20.6 160.9%
Teflaro(R) - 33.0 - - 33.0 - 35.2 - - 35.2 (2.2) (6.3)%
Rapaflo(R) 25.7 - 1.7 - 27.4 29.4 - 1.5 - 30.9 (3.5) (11.3)%
Savella(R) - 26.0 - - 26.0 - 22.3 - - 22.3 3.7 16.6%
SkinMedica(R) 25.4 - - - 25.4 29.1 - - - 29.1 (3.7) (12.7)%
Dalvance(R) - 15.2 1.2 - 16.4 - 10.2 - - 10.2 6.2 60.8%
Latisse(R) 13.3 - 2.4 - 15.7 17.7 - 2.2 - 19.9 (4.2) (21.1)%
Kybella(R) /Belkyra(R) 12.7 - 2.0 - 14.7 12.7 - 0.6 - 13.3 1.4 10.5%
Avycaz(R) - 14.5 - - 14.5 - 13.7 - - 13.7 0.8 5.8%
Lexapro(R) - 13.1 - - 13.1 - 16.5 - - 16.5 (3.4) (20.6)%
Tazorac(R) 12.8 - 0.2 - 13.0 23.4 - 0.2 - 23.6 (10.6) (44.9)%
Minastrin(R) 24 - 11.4 - - 11.4 - 83.0 0.6 - 83.6 (72.2) (86.4)%
Liletta(R) - 6.6 - - 6.6 - 5.7 - - 5.7 0.9 15.8%
Enablex(R) - 1.0 - - 1.0 - - - - - 1.0 n.a.
Namenda(R) IR - - - - - - 4.1 - - 4.1 (4.1) (100.0)%
Other Products Revenues 71.7 161.7 104.5 6.2 344.1 32.5 125.2 89.8 14.2 261.7 82.4 31.5%
Less product sold through our Anda Distribution
business n.a. n.a. n.a. - - n.a. n.a. n.a. (24.4) (24.4) 24.4 n.a.
---- ---- ---- --- --- ---- ---- ---- ----- ----- ---- ----
Total Net Revenues $1,715.0 $1,427.7 $858.5 $6.2 4,007.4 $1,488.9 $1,449.1 $757.0 $(10.2) 3,684.8 $322.6 8.8%
======== ======== ====== ==== ======= ======== ======== ====== ====== ======= ====== ===
** Represents sales of all fillers including Juvederm and Voluma product lines.
Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Movement
------------------------------ ------------------------------ --------
US Specialized US General International Corporate Global US Specialized US General International Corporate Global Total Total Change
Therapeutics Medicine Therapeutics Medicine Percentage
Change
------
Botox(R) $1,083.4 $ - $446.6 $ - $1,530.0 $957.7 $ - $399.5 $ - $1,357.2 $172.8 12.7%
Restasis(R) 645.2 - 31.2 - 676.4 670.0 - 34.3 - 704.3 (27.9) (4.0)%
Juvederm Collection ** 246.0 - 259.5 - 505.5 220.3 - 207.4 - 427.7 77.8 18.2%
Lumigan(R)/Ganfort(R) 153.3 - 180.3 - 333.6 162.1 - 182.6 - 344.7 (11.1) (3.2)%
Linzess(R)/Constella(R) - 315.4 10.4 - 325.8 - 287.6 8.4 - 296.0 29.8 10.1%
Bystolic(R) /Byvalson(R) - 290.5 1.0 - 291.5 - 313.9 0.8 - 314.7 (23.2) (7.4)%
Alphagan(R)/Combigan(R) 182.8 - 85.0 - 267.8 180.9 - 86.0 - 266.9 0.9 0.3%
Namenda XR(R) - 240.7 - - 240.7 - 339.6 - - 339.6 (98.9) (29.1)%
Eye Drops 98.5 - 136.0 - 234.5 89.9 - 139.2 - 229.1 5.4 2.4%
Lo Loestrin(R) - 212.8 - - 212.8 - 190.3 - - 190.3 22.5 11.8%
Breast Implants 115.6 - 78.7 - 194.3 98.1 - 76.9 - 175.0 19.3 11.0%
Estrace(R) Cream - 163.5 - - 163.5 - 177.8 - - 177.8 (14.3) (8.0)%
Viibryd(R)/Fetzima(R) - 157.7 1.1 - 158.8 - 165.0 0.1 - 165.1 (6.3) (3.8)%
Ozurdex (R) 47.4 - 102.3 - 149.7 40.9 - 86.8 - 127.7 22.0 17.2%
Alloderm(R) 138.7 - 3.5 - 142.2 - - - - - 142.2 n.a.
Asacol(R)/Delzicol(R) - 103.2 24.9 - 128.1 - 225.7 26.3 - 252.0 (123.9) (49.2)%
Vraylar(TM) - 119.9 - - 119.9 - 18.7 - - 18.7 101.2 n.m.
Carafate (R) /Sulcrate (R) - 117.9 1.4 - 119.3 - 111.3 1.1 - 112.4 6.9 6.1%
Zenpep(R) - 97.0 - - 97.0 - 92.6 - - 92.6 4.4 4.8%
Aczone(R) 81.6 - 0.1 - 81.7 87.1 - 0.1 - 87.2 (5.5) (6.3)%
Canasa(R)/Salofalk(R) - 76.7 8.7 - 85.4 - 87.8 8.6 - 96.4 (11.0) (11.4)%
Saphris(R) - 80.3 - - 80.3 - 82.8 - - 82.8 (2.5) (3.0)%
Armour Thyroid - 79.3 - - 79.3 - 82.7 - - 82.7 (3.4) (4.1)%
Viberzi(R) - 72.8 0.1 - 72.9 - 24.4 - - 24.4 48.5 198.8%
Teflaro(R) - 63.6 - - 63.6 - 68.6 - - 68.6 (5.0) (7.3)%
Coolsculpting(R) Consumables 47.9 - 12.5 - 60.4 - - - - - 60.4 n.a.
Namzaric(R) - 57.0 - - 57.0 - 23.1 - - 23.1 33.9 146.8%
Rapaflo(R) 51.6 - 3.7 - 55.3 62.4 - 2.7 - 65.1 (9.8) (15.1)%
SkinMedica(R) 53.4 - - - 53.4 55.7 - - - 55.7 (2.3) (4.1)%
Minastrin(R) 24 - 52.5 - - 52.5 - 162.6 1.4 - 164.0 (111.5) (68.0)%
Savella(R) - 50.3 - - 50.3 - 46.0 - - 46.0 4.3 9.3%
Coolsculpting(R) Systems & Add On
Applicators 31.0 - 10.2 - 41.2 - - - - - 41.2 n.a.
Tazorac(R) 36.2 - 0.4 - 36.6 40.5 - 0.4 - 40.9 (4.3) (10.5)%
Kybella(R) /Belkyra(R) 27.8 - 3.5 - 31.3 24.0 - 1.1 - 25.1 6.2 24.7%
Latisse(R) 26.9 - 4.3 - 31.2 37.5 - 4.3 - 41.8 (10.6) (25.4)%
Lexapro(R) - 26.5 - - 26.5 - 35.2 - - 35.2 (8.7) (24.7)%
Dalvance(R) - 24.8 1.2 - 26.0 - 16.4 - - 16.4 9.6 58.5%
Avycaz(R) - 25.8 - - 25.8 - 22.1 - - 22.1 3.7 16.7%
Liletta(R) - 13.8 - - 13.8 - 10.6 - - 10.6 3.2 30.2%
Enablex(R) - 1.9 - - 1.9 - 12.8 - - 12.8 (10.9) (85.2)%
Namenda(R) IR - 0.1 - - 0.1 - 9.9 - - 9.9 (9.8) (99.0)%
Other 129.7 329.5 189.2 14.0 662.4 60.5 295.3 162.3 19.7 537.8 124.6 23.2%
Less product sold through our former
Anda Distribution business n.a. n.a. n.a. - - n.a. n.a. n.a. (56.3) (56.3) 56.3 (100.0)%
---- ---- ---- --- --- ---- ---- ---- ----- ----- ---- -------
Total Net Revenues $3,197.0 $2,773.5 $1,595.8 $14.0 7,580.3 $2,787.6 $2,902.8 $1,430.3 $(36.6) 7,084.1 $496.2 7.0%
======== ======== ======== ===== ======= ======== ======== ======== ====== ======= ====== ===
The following table presents Allergan plc's Condensed Consolidated Balance Sheets as of June 30, 2017 and December 31,
2016.
Table 3
ALLERGAN PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions)
June 30, December 31,
2017 2016
---- ----
Assets
Cash and cash equivalents $886.9 $1,724.0
Marketable securities 4,939.0 11,501.5
Accounts receivable, net 2,795.9 2,531.0
Inventories 935.9 718.0
Other current assets 875.5 1,383.4
Assets held for sale 11.1 27.0
Property, plant and equipment,
net 1,750.1 1,611.3
Investments and other assets 578.5 515.4
Product rights and other
intangibles, net 62,369.7 62,618.6
Goodwill 49,592.2 46,356.1
-------- --------
Total assets $124,734.8 $128,986.3
========== ==========
Liabilities & Equity
Current liabilities $4,843.3 $5,076.8
Current and long-term debt and
capital leases 30,238.3 32,768.7
Deferred income taxes and other
liabilities 14,420.4 14,940.3
Total equity 75,232.8 76,200.5
-------- --------
Total liabilities and equity $124,734.8 $128,986.3
========== ==========
The following table presents Allergan plc's Condensed Consolidated Statements of Cash Flows for the three and six months ended June 30, 2017 and 2016.
Table 4
ALLERGAN PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2017 2016 2017 2016
---- ---- ---- ----
Cash Flows From Operating Activities:
Net (loss) $(723.9) $(499.9) $(3,288.1) $(243.5)
------- ------- --------- -------
Reconciliation to net cash provided by operating activities:
Depreciation 39.6 34.8 81.2 76.9
Amortization 1,757.9 1,635.5 3,493.9 3,227.6
Provision for inventory reserve 24.8 57.7 48.7 116.9
Share-based compensation 85.8 89.8 148.5 188.8
Deferred income tax benefit (766.0) 192.1 (1,478.8) (327.1)
In-process research and development impairments 703.3 268.9 1,043.3 274.9
Loss on asset sales and impairments, net 14.0 (17.6) 21.4 (19.3)
Net income impact of other-than-temporary loss
on investment in Teva securities - - 1,978.0 -
Amortization of inventory step up 59.9 - 87.8 42.4
Non-cash extinguishment of debt (8.2) - (8.2) -
Amortization of deferred financing costs 6.5 11.0 13.2 21.0
Contingent consideration adjustments, including accretion (15.5) 27.2 15.2 60.8
Other, net (3.8) (17.3) (22.6) (26.4)
Changes in assets and liabilities (net of effects of acquisitions):
Decrease / (increase) in accounts receivable, net (192.2) (352.6) (139.0) (501.2)
Decrease / (increase) in inventories (44.6) (34.7) (95.1) (183.2)
Decrease / (increase) in prepaid expenses and other current assets 8.0 231.0 10.5 245.4
Increase / (decrease) in accounts payable and accrued expenses 156.2 392.7 (207.5) 424.0
Increase / (decrease) in income and other taxes payable 549.9 (425.4) 673.7 (477.6)
Increase / (decrease) in other assets and liabilities (22.4) (213.4) (23.5) (267.5)
----- ------ ----- ------
Net cash provided by operating activities 1,629.3 1,379.8 2,352.6 2,632.9
------- ------- ------- -------
Cash Flows From Investing Activities:
Additions to property, plant and equipment (104.0) (97.9) (137.2) (182.8)
Additions to product rights and other intangibles (240.0) - (586.3) -
Additions to investments (400.0) - (6,787.9) -
Proceeds from sale of investments and other assets 3,542.2 6.5 13,197.5 25.5
Proceeds from sales of property, plant and equipment 3.6 2.4 4.3 14.5
Acquisitions of businesses, net of cash acquired (2,416.0) - (5,290.4) -
-------- --- -------- ---
Net cash provided by / (used in) investing activities 385.8 (89.0) 400.0 (142.8)
----- ----- ----- ------
Cash Flows From Financing Activities:
Proceeds from borrowings on long-term indebtedness, including credit facility 3,023.0 - 3,023.0 900.0
Debt issuance and other financing costs (17.5) - (17.5) -
Payments on debt, including capital lease obligations (4,563.3) (2,981.4) (5,579.2) (3,835.6)
Proceeds from stock plans 72.1 37.7 124.7 107.3
Payments of contingent consideration and other financing (428.8) (31.5) (505.1) (63.8)
Repurchase of ordinary shares (5.7) (14.1) (35.2) (67.3)
Dividends (306.1) (69.6) (611.9) (139.2)
------ ----- ------ ------
Net cash (used in) financing activities (2,226.3) (3,058.9) (3,601.2) (3,098.6)
-------- -------- -------- --------
Effect of currency exchange rate changes on cash 5.2 (3.2) 11.5 2.0
and cash equivalents
Net (decrease) in cash and cash equivalents (206.0) (1,771.3) (837.1) (606.5)
Cash and cash equivalents at beginning of period 1,092.9 2,260.8 1,724.0 1,096.0
------- ------- ------- -------
Cash and cash equivalents at end of period $886.9 $489.5 $886.9 $489.5
====== ====== ====== ======
Non-GAAP performance net income per share is used by management as one of the primary metrics in evaluating the Company's performance. The Company believes that Non-GAAP performance net income per share provides useful information to investors because it is a financial measure used by our management team to evaluate our operating performance, make day to day operating decisions, prepare internal forecasts, communicate external forward-looking guidance to investors, compensate management and allocate the Company's resources. We believe this presentation also increases comparability of period-to-period results. We define non-GAAP adjustments to the reported GAAP
measures as GAAP results adjusted for the following net of tax: (i) amortization expenses, (ii) global supply chain and operational excellence initiatives, (iii) acquisition, integration and licensing charges, (iv) accretion and fair market value adjustments on contingent liabilities, (v) impairment/asset sales and related costs, including the exclusion of discontinued operations, (vi) legal settlements and (vii) other unusual charges or expenses. Non-GAAP performance net income per share is not, and should not be viewed as, a substitute for reported GAAP continuing operations loss per share. The Company has consistently excluded amortization of all intangible assets,
including the product rights that generate a significant portion of our ongoing revenue. The Company's total accumulated amortization related to our intangible assets as of June 30, 2017 and December 31, 2016 was $18.2 billion and $14.6 billion, respectively, and is expected to continue to be a material non-GAAP adjustment. The following table presents Allergan plc's GAAP to Non-GAAP adjustments for the three and six months ended June 30, 2017 and 2016:
Table 5
ALLERGAN PLC
GAAP TO NON-GAAP ADJUSTMENTS
(Unaudited; in millions)
Three Months Ended June 30, 2017
Net COGS Research & Selling & General & Amortization Asset sales Interest Other Income
Revenue Development Marketing Administrative and expense, income taxes
Impairments, net (expense)
net
GAAP $4,007.4 $550.2 $489.4 $935.2 $459.8 $1,757.9 $717.3 $(260.8) $(133.5) $(581.2)
Impact of selling through purchase accounting mark-up on acquired inventory - (59.9) - - - - - - - -
Purchase accounting impact on stock-based compensation for acquired awards - (1.1) (4.6) (8.9) (36.4) - - - - -
Severance due to integration of acquired entities - (0.2) (1.9) (5.8) (10.9) - - - - -
Non-acquisition related severance and restructuring - (5.4) (26.8) (29.9) (3.5) - - - - -
Costs associated with disposed businesses - (1.0) - - (1.3) - - - - -
Integration charges of acquired businesses - (0.1) - (5.2) (28.0) - - - - -
Brand related milestones and upfront expenses for asset acquisitions
Akarna Therapeutics, Ltd. - - (39.6) - - - - - - -
Other - - (13.2) - - - - - - -
Accretion and fair-value adjustments to contingent consideration - 24.8 (9.3) - - - - - - -
Non-cash amortization of debt premium recognized in purchase accounting - - - - - - - (9.7) - -
Decrease in realization of certain IPR&D products acquired in the Allergan Acquisition - - - - - - (550.0) - - -
Decrease in realization of certain R&D projects acquired in the Uteron acquisition - - - - - - (91.3) - - -
Decrease in realization of certain R&D projects acquired in the Warner Chilcott acquisition - - - - - - (57.0) - - -
Asset sales and impairments, other - - - - - - (19.0) - - -
Impact of debt refinancing - - - - (12.6) - - - 161.5 -
Litigation settlement related charges - - - - (42.5) - - - - -
Other adjustments - 0.2 (0.1) 0.5 6.0 (1,757.9) - - 5.8 -
Income taxes on pre-tax adjustments - - - - - - - - - 608.0
Discrete income tax events - - - - - - - - - 188.9
Non-GAAP Adjusted $4,007.4 $507.5 $393.9 $885.9 $330.6 $ - $ - $(270.5) $33.8 $215.7
======== ====== ====== ====== ====== === === === === ======= ===== ======
ALLERGAN PLC
GAAP TO NON-GAAP ADJUSTMENTS
(Unaudited; in millions)
Three Months Ended June 30, 2016
Net COGS Research & Selling & General & Amortization Asset sales Interest Other Income
Revenue Development Marketing Administrative and expense, income taxes
Impairments, net (expense)
net
GAAP $3,684.8 $441.5 $636.5 $866.8 $343.2 $1,633.1 $251.3 $(343.3) $150.1 $(258.2)
Expenditures incurred with the Pfizer transaction - (1.5) (2.5) (12.6) (21.6) - - - (150.0) -
Purchase accounting impact on stock-based compensation for acquired awards - (1.9) (10.2) (17.9) (11.4) - - - - -
Severance due to integration of acquired entities and other restructuring programs - (1.4) (0.1) (6.3) (2.9) - - - - -
Integration charges of acquired businesses - (0.4) (1.1) (1.5) (51.0) - - - - -
Brand related milestones and upfront expenses for asset acquisitions
Topokine - - (85.8) - - - - - - -
Heptares (125.0)
Other - - (32.4) - - - - - - -
Accretion and fair-value adjustments to contingent consideration - 4.8 (34.4) - - - - - - -
Mark-to-market adjustments for foreign currency option contracts - - - - 8.6 - - - - -
Non-cash amortization of debt premium recognized in purchase accounting - - - - - - - (10.3) - -
Women's healthcare portfolio product impairment (24.0)
Osteoarthritis IPR&D impairment (189.9)
Asset sales and impairments, other - - - - - - (37.4) - - -
Litigation settlement related charges - - - - (49.7) - - - - -
Other adjustments - (0.1) - (0.1) (4.8) (1,633.1) - - - -
Income taxes on pre-tax adjustments - - - - - - - - - 355.0
Discrete income tax events - - - - - - - - - 9.9
Non-GAAP Adjusted $3,684.8 $441.0 $345.0 $828.4 $210.4 $ - $ - $(353.6) $0.1 $106.7
======== ====== ====== ====== ====== === === === === ======= ==== ======
The non-GAAP income tax expense is determined based on our pre-tax income adjusted for non-GAAP items on a jurisdiction by jurisdiction basis. The non-GAAP effective tax rate for the three months ended June 30, 2017 was impacted by U.S. income taxed at rates higher than the Irish statutory rate, partially offset by income earned in jurisdictions with tax rates lower than the Irish statutory rate.
The non-GAAP effective tax rate for the three months ended June 30, 2017 excludes a net discrete tax benefit of approximately $188.9 million related to the tax effects of an investment in a U.S. subsidiary, share-based compensation and other individually insignificant items.
ALLERGAN PLC
GAAP TO NON-GAAP ADJUSTMENTS
(Unaudited; in millions)
Six Months Ended June 30, 2017
Net COGS Research & Selling & General & Amortization Asset sales Interest Other Income
Revenue Development Marketing Administrative and expense, income taxes
(expense)
Impairments, net
net
GAAP $7,580.3 $1,000.6 $1,249.3 $1,804.3 $775.9 $3,493.9 $1,064.7 $(525.2) $(2,056.3) $(1,113.3)
Impact of selling through purchase accounting mark-up on acquired inventory - (87.8) - - - - - - - -
Expenditures incurred with the Pfizer transaction - (2.0) (2.4) (5.6) (10.5) - - - - -
Purchase accounting impact on stock-based compensation for acquired awards - (2.1) (10.2) (18.3) (42.4) - - - - -
Severance due to integration of acquired entities - (0.5) (2.5) (15.5) (14.7) - - - - -
Non-acquisition related severance and restructuring - (5.4) (26.8) (29.9) (3.5) - - - - -
Costs associated with disposed businesses - (1.0) - - (13.4) - - - - -
Integration charges of acquired businesses - (0.6) (0.9) (5.6) (55.0) - - - - -
Brand related milestones and upfront expenses for asset acquisitions
Assembly Biosciences, Inc. - - (50.0) - - - - - - -
Lysosomal Therapeutics, Inc. - - (145.0) - - - - - - -
Editas Medicine Inc. - - (90.0) - - - - - - -
Akarna Therapeutics, Ltd. - - (39.6) - - - - - - -
Other - - (19.3) - - - - - - -
Accretion and fair-value adjustments to contingent consideration - 60.3 (75.5) - - - - - - -
Net income impact of determining that the loss on investment of Teva securities is other-than-temporary - - - - - - - - 1,978.0 -
Non-cash amortization of debt premium recognized in purchase accounting - - - - - - - (20.0) - -
Termination of agreement for SER-120 - - - - - - (147.4) - - -
Decrease in realization of certain IPR&D products acquired in the Allergan Acquisition - - - - - - (550.0) - - -
Decrease in realization of certain R&D projects acquired in the Uteron acquisition - - - - - - (91.3) - - -
Decrease in realization of certain R&D projects acquired in the Warner Chilcott acquisition - - - - - - (257.0) - - -
Asset sales and impairments, other - - - - - - (19.0) - - -
Settlement of Naurex, Inc. agreement - - - - - - - - (20.0) -
Impact of debt refinancing - - - - (12.6) - - - 161.5 -
Litigation settlement related charges - - - - (41.4) - - - - -
Other adjustments - 1.3 0.7 (0.3) 10.9 (3,493.9) - - 5.7 -
Income taxes on pre-tax adjustments - - - - - - - - - 1,294.0
Discrete income tax events - - - - - - - - - 216.4
Non-GAAP Adjusted $7,580.3 $962.8 $787.8 $1,729.1 $593.3 $ - $ - $(545.2) $68.9 $397.1
======== ====== ====== ======== ====== === === === === ======= ===== ======
ALLERGAN PLC
GAAP TO NON-GAAP ADJUSTMENTS
(Unaudited; in millions)
Six Months Ended June 30, 2016
Net COGS Research & Selling & General & Amortization Asset sales Interest Other Income
Revenue Development Marketing Administrative and expense, income taxes
Impairments, net (expense)
net
GAAP $7,084.1 $918.9 $1,039.6 $1,633.6 $672.7 $3,222.8 $255.6 $(673.2) $150.6 $(666.9)
Impact of selling through purchase accounting mark-up on acquired inventory - (42.4) - - - - - - - -
Expenditures incurred with the Pfizer transaction - (2.2) (3.5) (21.0) (48.2) - - - (150.0) -
Purchase accounting impact on stock-based compensation for acquired awards - (4.7) (23.8) (39.0) (23.7) - - - - -
Severance due to integration of acquired entities and other restructuring programs - (3.3) (2.6) (5.4) (5.4) - - - - -
Integration charges of acquired businesses - (2.5) 6.3 (7.4) (83.0) - - - - -
Brand related milestones and upfront expenses for asset acquisitions
Topokine - - (85.8) - - - - - - -
Anterios - - (89.2) - - - - - - -
Heptares - - (125.0) - - - - - - -
Other - - (34.2) - - - - - - -
Accretion and fair-value adjustments to contingent consideration - (3.0) (60.3) - (0.1) - - - - -
Mark-to-market adjustments for foreign currency option contracts - - - - (0.2) - - - - -
Non-cash amortization of debt premium recognized in purchase accounting - - - - - - - (30.3) - -
Women's healthcare portfolio product impairment - - - - - - (24.0) - - -
Osteoarthritis IPR&D impairment - - - - - - (189.9) - - -
Asset sales and impairments, other - - - - - - (41.7) - - -
Litigation settlement related charges - - - - (59.2) - - - - -
Other adjustments - (0.1) - (0.1) (5.8) (3,222.8) - - - -
Income taxes on pre-tax adjustments - - - - - - - - - 980.1
Discrete income tax events - - - - - - - - - (72.3)
Non-GAAP Adjusted $7,084.1 $860.7 $621.5 $1,560.7 $447.1 $(0.0) $ - $(703.5) $0.6 $240.9
======== ====== ====== ======== ====== ===== === === ======= ==== ======
The non-GAAP income tax expense is determined based on our pre-tax income adjusted for non-GAAP items on a jurisdiction by jurisdiction basis. The non-GAAP effective tax rate for the six months ended June 30, 2017 was impacted by U.S. income taxed at rates higher than the Irish statutory rate, partially offset by income earned in jurisdictions with tax rates lower than the Irish statutory rate.
The non-GAAP effective tax rate for the six months ended June 30, 2017 excludes a net discrete tax benefit of approximately $216.4 million related to the tax effects of an investment in a U.S. subsidiary, integration activities, share-based compensation and other individually insignificant items.
The following table presents a reconciliation of Allergan plc's reported net (loss) from continuing operations attributable to shareholders and diluted earnings per share to non-GAAP performance net income and non-GAAP performance net income per share for the three and six months ended June 30, 2017 and 2016:
Table 6
ALLERGAN PLC
RECONCILIATION TABLE
(Unaudited; in millions except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2017 2016 2017 2016
---- ---- ---- ----
GAAP to Non-GAAP Performance net income calculation
GAAP (loss) from continuing operations attributable to shareholders $(717.5) $(424.4) $(3,279.6) $(517.3)
Adjusted for:
Amortization 1,757.9 1,633.1 3,493.9 3,222.8
Acquisition and licensing charges (1) 273.2 232.2 2,631.6 471.7
Accretion and fair-value adjustments to contingent consideration (15.5) 29.6 15.2 63.4
Impairment/asset sales and related costs 717.3 251.3 1,064.7 255.6
Non-recurring (gain) / losses 174.1 (8.6) 174.1 0.2
Legal settlements 42.5 49.7 41.4 59.2
Income taxes on items above and other income tax adjustments (796.9) (364.9) (1,510.4) (907.8)
------ ------ -------- ------
Non-GAAP performance net income attributable to shareholders $1,435.1 $1,398.0 $2,630.9 $2,647.8
======== ======== ======== ========
Diluted earnings per share
Diluted (loss) per share from continuing operations attributable to shareholders- GAAP $(2.14) $(1.07) $(9.78) $(1.31)
====== ====== ====== ======
Non-GAAP performance net income per share attributable to shareholders $4.02 $3.35 $7.37 $6.34
===== ===== ===== =====
Basic weighted average ordinary shares outstanding 335.2 395.6 335.2 395.2
Effect of dilutive securities:
Dilutive shares 21.5 21.8 21.8 22.3
---- ---- ---- ----
Diluted weighted average ordinary shares outstanding 356.7 417.4 357.0 417.5
===== ===== ===== =====
(1) Includes stock-based compensation due to the Zeltiq, Allergan and Forest acquisitions as well as the valuation accounting impact in interest expense, net.
We define adjusted EBITDA as an amount equal to consolidated net income /(loss) from continuing operations attributable to shareholders for such period adjusted for the following: (i) interest expense, (ii) interest income, (iii) (benefit) for income taxes, (iv) depreciation and amortization expenses, (v) stock-based
compensation expense, (vi) asset impairment charges and losses /(gains) and expenses associated with the sale of assets, including the exclusion of discontinued operations, (vii) business restructuring charges associated with Allergan's global supply chain and operational excellence initiatives or other restructurings of a
similar nature, (viii) costs and charges associated with the acquisition of businesses and assets including, but not limited to, milestone payments, integration charges, other charges associated with the revaluation of assets or liabilities and charges associated with the revaluation of acquisition related contingent
liabilities that are based in whole or in part on future estimated cash flows, (ix) litigation charges and settlements and (x) other unusual charges or expenses. We define non-GAAP adjusted operating income as adjusted EBITDA including depreciation and certain stock-based compensation charges and excluding dividend income.
The following table presents a reconciliation of Allergan plc's reported net (loss) from continuing operations attributable to shareholders for the three and six months ended June 30, 2017 and 2016 to adjusted EBITDA and adjusted operating income:
Table 7
ALLERGAN PLC
ADJUSTED EBITDA and ADJUSTED OPERATING INCOME, RECONCILIATION TABLE
(Unaudited; in millions)
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2017 2016 2017 2016
---- ---- ---- ----
GAAP (loss) from continuing operations attributable to shareholders $(717.5) $(424.4) $(3,279.6) $(517.3)
Plus:
Interest expense 277.4 345.8 567.1 678.6
Interest income (16.6) (2.5) (41.9) (5.4)
(Benefit) for income taxes (581.2) (258.2) (1,113.3) (666.9)
Depreciation 39.6 32.8 81.2 73.8
Amortization 1,757.9 1,633.1 3,493.9 3,222.8
------- ------- ------- -------
EBITDA $759.6 $1,326.6 $(292.6) $2,785.6
------ -------- ------- --------
Adjusted for:
Acquisition and licensing and other charges 231.9 201.0 2,578.6 410.2
Impairment/asset sales and related costs 717.3 251.3 1,064.7 255.6
Non-recurring (gain) / losses 174.1 (8.6) 174.1 0.2
Legal settlements 42.5 49.7 41.4 59.2
Accretion and fair-value adjustments to contingent consideration (15.5) 29.6 15.2 63.4
Share-based compensation including cash settlements 117.3 85.2 180.0 176.0
----- ---- ----- -----
Adjusted EBITDA $2,027.2 $1,934.8 $3,761.4 $3,750.2
-------- -------- -------- --------
Adjusted for:
Depreciation (39.6) (32.8) (81.2) (73.8)
Dividend income (34.1) - (68.2) -
Share-based compensation not related to restructuring charges and purchase accounting impact on stock-based compensation for acquired
awards (66.3) (43.8) (107.0) (84.8)
----- ----- ------ -----
Adjusted Operating Income $1,887.2 $1,858.2 $3,505.0 $3,591.6
======== ======== ======== ========
The following table details Allergan plc's segment contribution reconciled to the non-GAAP contribution for the same financial statement line items for the three and six months ended June 30, 2017 and 2016.
Table 8
ALLERGAN PLC
Segment Contribution to Non-GAAP Allergan plc Contribution
(Unaudited; $ in millions)
Three Months Ended June 30, 2017 Three Months Ended June 30, 2016
-------------------------------- --------------------------------
US Specialized US General International Corporate Total Company US Specialized US General International Corporate Total Company
Therapeutics Medicine Segment Segment Therapeutics Medicine Segment Segment
Segment Segment
------- -------
Net revenues (1) $1,715.0 $1,427.7 $858.5 $6.2 $4,007.4 $1,488.9 $1,449.1 $757.0 $(10.2) $3,684.8
-------- -------- ------ ---- -------- -------- -------- ------ ------ --------
Operating expenses:
Cost of sales(1)(2) 128.8 203.2 125.0 50.5 507.5 75.1 214.9 115.0 36.0 441.0
Selling and marketing 356.8 288.1 238.9 2.1 885.9 287.8 332.7 207.2 0.7 828.4
General and administrative 49.8 41.3 28.3 211.2 330.6 46.0 43.7 30.9 89.8 210.4
---- ---- ---- ----- ----- ---- ---- ---- ---- -----
Segment contribution $1,179.6 $895.1 $466.3 $(257.6) $2,283.4 $1,080.0 $857.8 $403.9 $(136.7) $2,205.0
======== ====== ====== ======= ======== ======== ====== ====== ======= ========
Segment margin 68.8% 62.7% 54.3% n.m. 57.0% 72.5% 59.2% 53.4% n.m. 59.8%
Segment gross margin(3) 92.5% 85.8% 85.4% n.m. 87.3% 95.0% 85.2% 84.8% n.m. 88.0%
(1) Includes revenues earned that were distributed through our former Anda Distribution business to third party customers for the US Specialized Therapeutics Segment and the US General Medicine Segment in the three months ended June 30, 2016 of $24.4 million, which are reclassified to discontinued operations through Corporate. The corresponding reclassification recorded in cost of goods sold was $23.7 million in the three months ended June 30, 2016.
(2) Excludes amortization and impairment of acquired intangibles including product rights.
(3) Defined as net revenues less segment related cost of sales as a percentage of net revenues.
Six Months Ended June 30, 2017 Six Months Ended June 30, 2016
------------------------------ ------------------------------
US Specialized US General International Corporate Total Company US Specialized US General International
Therapeutics Medicine Segment Segment Therapeutics Medicine Segment Segment
Segment Segment Corporate Total Company
--------------- ---------------- ------------- --------- ------------- -------------- ---------------- ------------- --------- -------------
Net revenues (1) $3,197.0 $2,773.5 $1,595.8 $14.0 $7,580.3 $2,787.6 $2,902.8 $1,430.3 $(36.6) $7,084.1
-------- -------- -------- ----- -------- -------- -------- -------- ------ --------
Operating expenses:
Cost of sales(1)(2) 218.0 397.7 225.3 121.8 962.8 145.8 434.5 214.2 66.2 860.7
Selling and marketing 687.2 590.6 448.4 2.9 1,729.1 552.4 610.0 394.5 3.8 1,560.7
General and administrative 94.6 82.0 58.2 358.5 593.3 85.2 85.9 58.5 217.5 447.1
---- ---- ---- ----- ----- ---- ---- ---- ----- -----
Segment contribution $2,197.2 $1,703.2 $863.9 $(469.2) $4,295.1 $2,004.2 $1,772.4 $763.1 $(324.1) $4,215.6
======== ======== ====== ======= ======== ======== ======== ====== ======= ========
Segment margin 68.7% 61.4% 54.1% n.m. 56.7% 71.9% 61.1% 53.4% n.m. 59.5%
Segment gross margin(3) 93.2% 85.7% 85.9% n.m. 87.3% 94.8% 85.0% 85.0% n.m. 87.9%
(1) Includes revenues earned that were distributed through our former Anda Distribution business to third party customers for the US Specialized Therapeutics Segment and the US General Medicine Segment in the six months ended June 30, 2016 of $56.3 million, which are reclassified to discontinued operations through Corporate. The corresponding reclassification recorded in cost of goods sold was $55.2 million in the six months ended June 30, 2016.
(2) Excludes amortization and impairment of acquired intangibles including product rights.
(3) Defined as net revenues less segment related cost of sales as a percentage of net revenues.
The following table details Allergan plc's product revenue for significant promoted products within the US Specialized Therapeutics segment for the three and six months ended June 30, 2017 and 2016.
Table 9
ALLERGAN PLC
US Specialized Therapeutics Product Revenue
(Unaudited; in millions)
Three Months Ended June 30, Change
--------------------------- ------
2017 2016 (1) Dollars %
---- ------- ------- ---
Total Eye Care $600.1 $636.1 $(36.0) (5.7)%
Restasis(R) 336.4 371.3 (34.9) (9.4)%
Alphagan(R)/Combigan(R) 96.4 96.0 0.4 0.4%
Lumigan(R)/Ganfort(R) 79.0 80.6 (1.6) (2.0)%
Ozurdex(R) 24.9 21.5 3.4 15.8%
Eye Drops 50.7 49.1 1.6 3.3%
Other Eye Care 12.7 17.6 (4.9) (27.8)%
Total Medical Aesthetics 643.9 419.8 224.1 53.4%
Facial Aesthetics 349.2 320.2 29.0 9.1%
Botox(R) Cosmetics 210.3 189.9 20.4 10.7%
Juvederm Collection 126.2 117.6 8.6 7.3%
Kybella(R) 12.7 12.7 - 0.0%
Plastic Surgery 61.3 52.8 8.5 16.1%
Breast Implants 61.3 51.7 9.6 18.6%
Other Plastic Surgery - 1.1 (1.1) (100.0)%
Regenerative Medicine 115.8 - 115.8 n.a.
Alloderm(R) 84.6 - 84.6 n.a.
Other Regenerative Medicine 31.2 - 31.2 n.a.
Body Contouring 78.9 - 78.9 n.a.
Coolsculpting(R) Systems & Add On Applicators 31.0 - 31.0 n.a.
Coolsculpting(R) Consumables 47.9 - 47.9 n.a.
Skin Care 38.7 46.8 (8.1) (17.3)%
SkinMedica(R) 25.4 29.1 (3.7) (12.7)%
Latisse(R) 13.3 17.7 (4.4) (24.9)%
Total Medical Dermatology 81.8 97.1 (15.3) (15.8)%
Aczone(R) 41.0 54.1 (13.1) (24.2)%
Tazorac(R) 12.8 23.4 (10.6) (45.3)%
Botox(R) Hyperhidrosis 16.8 16.3 0.5 3.1%
Other Medical Dermatology 11.2 3.3 7.9 n.m.
Total Neuroscience & Urology 372.6 326.3 46.3 14.2%
Botox(R) Therapeutics 346.9 296.0 50.9 17.2%
Rapaflo(R) 25.7 29.4 (3.7) (12.6)%
Other Neuroscience & Urology - 0.9 (0.9) (100.0)%
Other Revenues 16.6 9.6 7.0 72.9%
---- --- --- ----
Net revenues $1,715.0 $1,488.9 $226.1 15.2%
======== ======== ====== ====
(1) Includes revenues earned that were distributed through our former Anda Distribution business to third party customers.
Six Months Ended June 30, Change
------------------------- ------
2017 2016 (1) Dollars %
---- ------- ------- ---
Total Eye Care $1,153.2 $1,169.1 $(15.9) (1.4)%
Restasis(R) 645.2 670.0 (24.8) (3.7)%
Alphagan(R)/Combigan(R) 182.8 180.9 1.9 1.1%
Lumigan(R)/Ganfort(R) 153.3 162.1 (8.8) (5.4)%
Ozurdex(R) 47.4 40.9 6.5 15.9%
Eye Drops 98.5 89.9 8.6 9.6%
Other Eye Care 26.0 25.3 0.7 2.8%
Total Medical Aesthetics 1,134.0 793.7 340.3 42.9%
Facial Aesthetics 667.9 599.6 68.3 11.4%
Botox(R) Cosmetics 394.1 355.3 38.8 10.9%
Fillers 246.0 220.3 25.7 11.7%
Kybella(R) 27.8 24.0 3.8 15.8%
Plastic Surgery 115.6 100.9 14.7 14.6%
Breast Implants 115.6 98.1 17.5 17.8%
Other Plastic Surgery - 2.8 (2.8) (100.0)%
Regenerative Medicine 191.3 - 191.3 n.a.
Alloderm(R) 138.7 - 138.7 n.a.
Other Regenerative Medicine 52.6 - 52.6 n.a.
Body Contouring 78.9 - 78.9 n.a.
Coolsculpting(R) Systems & Add On Applicators 31.0 - 31.0 n.a.
Coolsculpting(R) Consumables 47.9 - 47.9 n.a.
Skin Care 80.3 93.2 (12.9) (13.8)%
SkinMedica(R) 53.4 55.7 (2.3) (4.1)%
Latisse(R) 26.9 37.5 (10.6) (28.3)%
Total Medical Dermatology 168.4 166.1 2.3 1.4%
Aczone(R) 81.6 87.1 (5.5) (6.3)%
Tazorac(R) 36.2 40.5 (4.3) (10.6)%
Botox(R) Hyperhidrosis 33.6 32.6 1.0 3.1%
Other Medical Dermatology 17.0 5.9 11.1 188.1%
Total Neuroscience & Urology 707.3 633.1 74.2 11.7%
Botox(R) Therapeutics 655.7 569.8 85.9 15.1%
Rapaflo(R) 51.6 62.4 (10.8) (17.3)%
Other Neuroscience & Urology - 0.9 (0.9) (100.0)%
Other Revenues 34.1 25.6 8.5 33.2%
---- ---- --- ----
Net revenues $3,197.0 $2,787.6 $409.4 14.7%
======== ======== ====== ====
(1) Includes revenues earned that were distributed through our former Anda Distribution business to third party customers.
The following table details Allergan plc's product revenue for significant promoted products within the US General Medicine segment for the three and six months ended June 30, 2017 and 2016.
Table 10
ALLERGAN PLC
US General Medicine Product Revenue
(Unaudited; in millions)
Three Months Ended June 30, Change
--------------------------- ------
2017 2016 (1) Dollars %
---- ------- ------- ---
Total Central Nervous System (CNS) $346.6 $317.5 29.1 9.2%
Namenda XR(R) 118.7 166.5 (47.8) (28.7)%
Namzaric(R) 33.4 12.8 20.6 160.9%
Viibryd(R)/Fetzima(R) 85.2 81.7 3.5 4.3%
Vraylar(TM) 66.3 11.1 55.2 n.m.
Saphris(R) 43.0 41.3 1.7 4.1%
Namenda(R) IR - 4.1 (4.1) (100.0)%
Total Gastrointestinal (GI) 410.8 442.0 (31.2) (7.1)%
Linzess(R) 167.8 150.5 17.3 11.5%
Asacol(R)/Delzicol(R) 45.6 119.8 (74.2) (61.9)%
Carafate(R)/Sulcrate(R) 59.2 50.3 8.9 17.7%
Zenpep(R) 50.5 43.0 7.5 17.4%
Canasa(R)/Salofalk(R) 38.4 46.7 (8.3) (17.8)%
Viberzi(R) 41.3 20.4 20.9 102.5%
Other GI 8.0 11.3 (3.3) (29.2)%
Total Women's Health 248.0 296.1 (48.1) (16.2)%
Lo Loestrin(R) 113.0 101.0 12.0 11.9%
Estrace(R) Cream 90.1 97.2 (7.1) (7.3)%
Minastrin(R) 24 11.4 83.0 (71.6) (86.3)%
Liletta(R) 6.6 5.7 0.9 15.8%
Other Women's Health 26.9 9.2 17.7 192.4%
Total Anti-Infectives 67.8 63.1 4.7 7.4%
Teflaro(R) 33.0 35.2 (2.2) (6.3)%
Dalvance(R) 15.2 10.2 5.0 49.0%
Avycaz(R) 14.5 13.7 0.8 5.8%
Other Anti-Infectives 5.1 4.0 1.1 27.5%
Diversified Brands 305.5 308.5 (3.0) (1.0)%
Bystolic(R) /Byvalson(R) 150.7 150.3 0.4 0.3%
Armour Thyroid 42.0 40.6 1.4 3.4%
Savella(R) 26.0 22.3 3.7 16.6%
Lexapro(R) 13.1 16.5 (3.4) (20.6)%
Enablex(R) 1.0 - 1.0 n.a.
PacPharma 3.7 14.7 (11.0) (74.8)%
Other Diversified Brands 69.0 64.1 4.9 7.6%
Other Revenues 49.0 21.9 27.1 123.7%
---- ---- ---- -----
Net revenues $1,427.7 $1,449.1 $(21.4) (1.5)%
======== ======== ====== =====
(1) Includes revenues earned that were distributed through our former Anda Distribution business to third party customers.
Six Months Ended June 30, Change
------------------------- ------
2017 2016 (1) Dollars %
---- ------- ------- ---
Total Central Nervous System (CNS) $655.7 $639.1 16.6 2.6%
Namenda XR(R) 240.7 339.6 (98.9) (29.1)%
Namzaric(R) 57.0 23.1 33.9 146.8%
Viibryd(R)/Fetzima(R) 157.7 165.0 (7.3) (4.4)%
Saphris(R) 80.3 82.8 (2.5) (3.0)%
Vraylar(TM) 119.9 18.7 101.2 n.m.
Namenda(R) IR 0.1 9.9 (9.8) (99.0)%
Total Gastrointestinal (GI) 798.3 845.6 (47.3) (5.6)%
Linzess(R) 315.4 287.6 27.8 9.7%
Asacol(R)/Delzicol(R) 103.2 225.7 (122.5) (54.3)%
Carafate(R)/Sulcrate(R) 117.9 111.3 6.6 5.9%
Zenpep(R) 97.0 92.6 4.4 4.8%
Canasa(R)/Salofalk(R) 76.7 87.8 (11.1) (12.6)%
Viberzi(R) 72.8 24.4 48.4 198.4%
Other GI 15.3 16.2 (0.9) (5.6)%
Total Women's Health 492.7 559.8 (67.1) (12.0)%
Lo Loestrin(R) 212.8 190.3 22.5 11.8%
Estrace(R) Cream 163.5 177.8 (14.3) (8.0)%
Minastrin(R) 24 52.5 162.6 (110.1) (67.7)%
Liletta(R) 13.8 10.6 3.2 30.2%
Other Women's Health 50.1 18.5 31.6 170.8%
Total Anti-Infectives 123.5 114.6 8.9 7.8%
Teflaro(R) 63.6 68.6 (5.0) (7.3)%
Dalvance(R) 24.8 16.4 8.4 51.2%
Avycaz(R) 25.8 22.1 3.7 16.7%
Other Anti-Infectives 9.3 7.5 1.8 24.0%
Diversified Brands 604.5 719.5 (115.0) (16.0)%
Bystolic(R) /Byvalson(R) 290.5 313.9 (23.4) (7.5)%
Armour Thyroid 79.3 82.7 (3.4) (4.1)%
Savella(R) 50.3 46.0 4.3 9.3%
Lexapro(R) 26.5 35.2 (8.7) (24.7)%
Enablex(R) 1.9 12.8 (10.9) (85.2)%
PacPharma 6.7 43.5 (36.8) (84.6)%
Other Diversified Brands 149.3 185.4 (36.1) (19.5)%
Other Revenues 98.8 24.2 74.6 n.m.
---- ---- ---- ----
Net revenues $2,773.5 $2,902.8 $(129.3) (4.5)%
======== ======== ======= =====
(1) Includes revenues earned that were distributed through our former Anda Distribution business to third party customers.
The following table details Allergan plc's product revenue for significant promoted products within the International segment for the three and six months ended June 30, 2017 and 2016.
Table 11
ALLERGAN PLC
International Product Revenue
(Unaudited; in millions)
Three Months Ended June 30, Change
--------------------------- ------
2017 2016 Dollars %
---- ---- ------- ---
Total Eye Care $322.0 $318.7 $3.3 1.0%
Lumigan(R)/Ganfort(R) 94.4 94.5 (0.1) (0.1)%
Alphagan(R)/Combigan(R) 42.7 44.2 (1.5) (3.4)%
Ozurdex(R) 51.2 45.7 5.5 12.0%
Optive(R) 27.6 26.0 1.6 6.2%
Other Eye Drops 43.1 46.0 (2.9) (6.3)%
Restasis(R) 17.3 19.3 (2.0) (10.4)%
Other Eye Care 45.7 43.0 2.7 6.3%
Total Medical Aesthetics 358.0 284.1 73.9 26.0%
Facial Aesthetics 287.5 240.6 46.9 19.5%
Botox(R) Cosmetics 148.2 132.7 15.5 11.7%
Juvederm Collection 137.3 107.3 30.0 28.0%
Belkyra(R) (Kybella(R)) 2.0 0.6 1.4 n.m.
Plastic Surgery 41.5 40.3 1.2 3.0%
Breast Implants 41.1 40.2 0.9 2.2%
Earfold(TM) 0.4 0.1 0.3 n.m.
Regenerative Medicine 3.6 - 3.6 n.a.
Alloderm(R) 2.3 - 2.3 n.a.
Other Regenerative Medicine 1.3 - 1.3 n.a.
Body Contouring 22.7 - 22.7 n.a.
Coolsculpting(R) Systems & Add On Applicators 10.2 - 10.2 n.a.
Coolsculpting(R) Consumables 12.5 - 12.5 n.a.
Skin Care 2.7 3.2 (0.5) (15.6)%
Botox(R) Therapeutics and Other 151.2 141.1 10.1 7.2%
Botox(R) Therapeutics 93.8 84.8 9.0 10.6%
Asacol(R)/Delzicol(R) 12.8 11.0 1.8 16.4%
Constella(R) 5.5 4.6 0.9 19.6%
Other Products 39.1 40.7 (1.6) (3.9)%
Other Revenues 27.3 13.1 14.2 108.4%
---- ---- ---- -----
Net revenues $858.5 $757.0 $101.5 13.4%
====== ====== ====== ====
Six Months Ended June 30, Change
------------------------- ------
2017 2016 Dollars %
---- ---- ------- ---
Total Eye Care $621.5 $610.2 $11.3 1.9%
Lumigan(R)/Ganfort(R) 180.3 182.6 (2.3) (1.3)%
Alphagan(R)/Combigan(R) 85.0 86.0 (1.0) (1.2)%
Ozurdex(R) 102.3 86.8 15.5 17.9%
Optive(R) 55.1 50.1 5.0 10.0%
Other Eye Drops 80.9 89.1 (8.2) (9.2)%
Restasis(R) 31.2 34.3 (3.1) (9.0)%
Other Eye Care 86.7 81.3 5.4 6.6%
Total Medical Aesthetics 646.1 529.0 117.1 22.1%
Facial Aesthetics 533.4 446.1 87.3 19.6%
Botox(R) Cosmetics 270.4 237.6 32.8 13.8%
Fillers 259.5 207.4 52.1 25.1%
Belkyra(R) (Kybella(R)) 3.5 1.1 2.4 n.m.
Plastic Surgery 79.5 77.1 2.4 3.1%
Breast Implants 78.7 76.9 1.8 2.3%
Earfold(TM) 0.8 0.2 0.6 n.m.
Regenerative Medicine 5.6 - 5.6 n.a.
Alloderm(R) 3.5 - 3.5 n.a.
Other Regenerative Medicine 2.1 - 2.1 n.a.
Body Contouring 22.7 - 22.7 n.a.
Coolsculpting(R) Systems & Add On Applicators 10.2 - 10.2 n.a.
Coolsculpting(R) Consumables 12.5 - 12.5 n.a.
Skin Care 4.9 5.8 (0.9) (15.5)%
Botox(R) Therapeutics and Other 285.1 264.4 20.7 7.8%
Botox(R) Therapeutics 176.2 161.9 14.3 8.8%
Asacol(R)/Delzicol(R) 24.9 26.3 (1.4) (5.3)%
Constella(R) 10.4 8.4 2.0 23.8%
Other Products 73.6 67.8 5.8 8.6%
Other Revenues 43.1 26.7 16.4 61.4%
---- ---- ---- ----
Net revenues $1,595.8 $1,430.3 $165.5 11.6%
======== ======== ====== ====
The following table provides a reconciliation of anticipated GAAP loss from continuing operations to non-GAAP performance net income attributable to shareholders for the year ending December 31, 2017:
Table 12
(in millions, except per share information) LOW HIGH
--- ----
GAAP (loss) from continuing operations attributable to shareholders $(3,465.0) $(3,330.0)
Adjusted for:
Amortization 7,050.0 7,050.0
Acquisition, licensing and other non-recurring charges 2,800.0 2,800.0
Accretion and fair-value adjustments to contingent consideration 30.0 30.0
Impairment/asset sales and related costs 1,100.0 1,100.0
Non-recurring (gains) / losses 175.0 175.0
Legal settlements 45.0 45.0
Income taxes on items above and other income tax adjustments (2,020.0) (2,015.0)
-------- --------
Non-GAAP performance net income attributable to shareholders 5,715.0 5,855.0
======= =======
Diluted earnings per share
Diluted (loss) per share from continuing operations attributable to shareholders- GAAP $(10.37) $(9.97)
======= ======
Non-GAAP performance diluted net income per share attributable to shareholders $16.05 $16.45
====== ======
Basic weighted average ordinary shares outstanding 334.0 334.0
Effect of dilutive securities:
Dilutive shares 22.0 22.0
---- ----
Diluted weighted average ordinary shares outstanding 356.0 356.0
===== =====
CONTACTS: Allergan:
Investors:
Daphne Karydas
(862) 261-8006
Media:
Mark Marmur
(862) 261-7558
View original content with multimedia:http://www.prnewswire.com/news-releases/allergan-reports-continued-strong-execution-in-second-quarter-2017-with-9-increase-in-gaap-net-revenues-to-40-billion-300498858.html
SOURCE Allergan plc
