Feb 8 Allergan Plc reported quarterly
earnings and revenue that topped Wall Street estimates, as
higher demand for Botox and eye treatment Restasis helped offset
declines in its older drugs, and the company forecast 2017
revenue above expectations.
The company's revenue rose 7 percent to $3.86 billion in the
fourth-quarter ended Dec. 31, beating the average estimate of
$3.77 billion, according to Thomson Reuters I/B/E/S.
The beat was also driven by demand for its constipation
medicine Linzess that more than made up for declining sales of
older drugs, such as its Alzheimer's dementia treatment Namenda
and Asacol for ulcerative colitis.
Chief Executive Brent Saunders, one of the industry's most
active dealmakers, took the blame for the company's
third-quarter profit miss, citing unanticipated declines in
sales of Allergan's older medicines.
Allergan, which in September pledged to limit drug price
increases to 10 percent, said it had raised the price of certain
U.S. branded products by 6.7 percent, on average, effective
Net price increases on its U.S. products averaged 4.8
percent in 2016, the company said.
Net loss attributable to ordinary shareholders narrowed to
$70.2 million, or 20 cents per share, in the fourth-quarter
ended Dec. 31, from $700.5 million, or $1.78 per share, a year
Excluding items, the company earned $3.90 per share, handily
beating the average estimate by 14 cents.
The Dublin-based company also forecast on Wednesday adjusted
earnings in the range of $15.80 per share to $16.30 per share on
revenue of $15.50 billion to $15.80 billion for 2017.
Analysts on average were expecting a profit of $16.01 per
share and revenue of $15.37 billion.
Allergan said last month it expected to achieve double-digit
adjusted earnings growth and mid-single digit net revenue
percentage growth in 2017, a forecast it called "realistic".
The company's stock inched about 1 percent to $235.61 in
light premarket trading on Wednesday.
(Reporting by Natalie Grover in Bengaluru; Editing by Sriraj