Allergan plc (AGN - Get Report) posted stronger-than-expected second quarter earnings Tuesday, and boosted its full-year sales guidance, after the Botox maker agreed to a $63 billion takeover from biopharmaceutical group AbbVie Inc. (ABBV - Get Report) in late June.
Allergan said non-GAAP net income for the three months ending in June came in at $4.38 per share, down just under 1% from last year but 4 cents ahead of the Street consensus forecast. Group revenues, Allergan said, fell 0.8% from last year to $4.09 billion but again topped analysts' estimates of a $3.93 billion tally.
Looking into 2019, Allergan said it sees net non-GAAP revenues of $15.4 billion to $15.6 billion, up from $15.1 billion to $15.4 billion, and held its forecast of non-GAAP earnings of around $16.55 per share.
"In the second quarter of 2019, Allergan delivered steady growth in our key products including Botox, Vraylar and Ozurdex while we continued to advance our pipeline, highlighted by the FDA's approval of Vraylar for Bipolar Depression and the NDA acceptance for Bimatoprost SR for Glaucoma," said CEO Brent Saunders. "Our second quarter results demonstrate the continued momentum in our business and our focus on customers. Thank you to the Allergan colleagues around the world who continue to deliver our products to the patients who need them."
Allergan's U.S.-listed shares edged 0.26% higher in early Tuesday trading to change hands at $160.99 each, a move that extends the stock's year-to-date gain to just over 20%.
AbbVie said in late June it will pay $188.24 each in cash and shares for Allergan's outstanding common stock, a 45% premium to the group's closing price on June 24, in a deal that would value the Dublin-based group at around $63 billion. AbbVie said the deal will add around 10% to the group's adjusted earnings in the first year, and will be incorporated in Delaware upon completion.
AbbVie's Richard Gonzalez will continue as chairman and Chief executive officer, the company said, and its main headquarters will remain in North Chicago, Illinois. Allergan CEO Brent Saunders will join the combined group's board when the deal is closed, the companies said, which is expected to be in early 2020.