Shares of pharmaceutical drug-maker Allergan PLC (NYSE: AGN) have dropped about 1% on Tuesday after the Company posted better-than-expected second quarter earnings and revenue.
Allergan came out with adjusted earnings of USD 4.38 per share, topping the average estimate of USD 4.34. A year ago, Allergan delivered earnings of USD 4.42 per share. Total revenue shrank 0.8% year-over-year to USD 4.09 Billion for the three months ended June 30. This is still ahead of Wall Street’s forecast of USD 3.94 Billion.
Allergan said it is raising its full-year revenue guidance to between USD 15.425 Billion and USD 15.625 Billion from a previous range of USD 15.125 Billion to USD 15.425 Billion.
During the second quarter, Allergan said it saw “steady growth” across key products like Botox and its injectable lip filler, Juvéderm. It also gained FDA approval to expand the use of Vraylar, which is used in the treatment of schizophrenia and bipolar disorders.
Allergan has a series of developments and new launches set for the second half of 2019 into mid 2020. By year-end the Company expects to gain regulatory approval for an expanded use of Botox. It also plans to launch a muscle toning device called CoolTone. Next year, Allergan is aiming to launch a treatment for patients with glaucoma or ocular hypertension.
Late second quarter, Allergan announced it will be acquired by drug-maker AbbVie, Inc. (NYSE: ABBV) in a cash-and-stock transaction valued at about USD 63 Billion. AbbVie and Allergan’s portfolios have some overlap in treatments for brain, women’s health, and stomach, but the combination will take AbbVie into the arena of cosmetic drugs as well. The deal is expected to close in early 2020.