(Adds conference call details)
Jan 5 Allergan Plc, taking a more
"realistic" approach to its forecast, said on Thursday it
expects mid-single digit net revenue percentage growth this
year, helped by key products and new launches.
Chief Executive Brent Saunders said that Allergan was now
moving away from "aspirational goals".
Allergan, which has snapped up a number of smaller
drugmakers since its planned $160 billion merger with Pfizer Inc
collapsed in April, reported disappointing quarterly
earnings in November and cut its 2016 forecast.
"This is an important step in setting appropriate
expectations," RBC Capital Markets analyst Randall Stanicky
Mizuho Securities USA analyst Irina Koffler also noted that
Allergan's guidance serves as a realistic baseline that should
prevent last year's unexpected disappointments.
The company, which promised it would limit its price
increases to 10 percent in September as part of a "social
contract", is not planning to have another round of hikes in
June, Saunders said at the Goldman Sachs healthcare conference
Drug pricing has become a lightning rod for criticism with
several drugmakers coming under federal investigation for price
Saunders said he did not expect his peers to subscribe to
this policy, but was encouraged by what he had seen so far.
"It seems the industry is taking pricing seriously."
The company, best known for Botox, sold its Actavis generics
business to Teva Pharmaceutical Industries for $40.5
billion in August, freeing up cash for deals.
Allergan has agreed to 12 deals in 2016, including the $1.7
billion acquisition of Tobira Therapeutics Inc, maker of an
experimental treatment for fatty liver disease, and $639 million
acquiring Vitae Pharmaceuticals Inc, maker of an experimental
drug to treat psoriasis.
Dublin-based Allergan, which will report its fourth-quarter
results in February, also said it expects to achieve
double-digit adjusted earnings growth in 2017.
"We are not surprised by these conservative expectations as
the company is still managing the declines of some of its
established products while its newer launches ramp," Mizuho's
Koffler wrote in a note.
Analysts on average expected 2017 adjusted earnings of
$16.04 per share and revenue of $15.31 billion, according to
Thomson Reuters I/B/E/S.
Allergan's 2016 adjusted net revenue from continuing
operations is expected to be $14.45 billion-$14.65 billion and
adjusted profit $13.30-$13.50 per share.
The company's shares were marginally up at $217.06. The
shares had fallen 36 percent last year.
(Reporting by Ankur Banerjee and Natalie Grover in Bengaluru;
Editing by Shounak Dasgupta)