Allergan plc (AGN) - Get Report posted stronger-than-expected third quarter earnings Tuesday, and boosted its full-year revenue guidance, as the Botox maker said its $63 billion takeover by biopharmaceutical group AbbVie Inc. (ABBV) - Get Report would close early next year.
Allergan said non-GAAP earnings for the three months ending in September came in at $4.25 per share, essentially flat to the same period in 2018 but 5 cents ahead of the Street consensus forecast. Group revenues, Allergan said, rose 3.6% to $4.05 billion, topping analysts' forecasts of a $3.88 billion tally. Botox revenues, the company said, rose 10% from last year to $237.6 million as lower-priced rivals from competitors such as Evolus Inc. (EOLS) - Get Report challenged its dominance.
Looking into the final months of 2019, Allergan said it sees full-year revenues in the region of $15.6 billion to $15.8 billion, a $200 million improvement at the upper end of its forecast range, and re-affirmed its non-GAAP earnings estimate of $16.55 per share.
"The third quarter 2019 results demonstrate our commitment to continued strong operational performance. The core business has grown and has been bolstered by significant pipeline progress, with three new molecular entities currently under regulatory review," said CEO Brent Saunders. "Vraylar, Botox cosmetic, Juvéderm, Botoxt Therapeutic, Ozurdex and Lo Loestrin continue to lead the way, with vraylar®growing 70 percent and US Botox Cosmetic growing 10 percent in the third quarter from the prior year."
Allergan shares were marked 0.2% higher at the start of trading Tuesday to change hands at $179.15 each, a move that would extend the stock's year-to-date gain to around 34%.
AbbVie said in late June that 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 Saunders will join the combined group's board when the deal is closed.