Shares of Allergan plc (AGN) fell in morning trading on Tuesday, Oct. 30, despite reporting better-than-expected top-and bottom-line third quarter results and increased guidance.
Shares were down 3.2% to $168.48 following the release of the report before the market open.
The Dublin-based maker of Botox reported non-GAAP performance net income per share of $4.25, versus analyst estimates of $4.04, according to FactSet. Revenue fell 3% to $3.91 billion, a decline that the company attributed mainly to the loss of exclusivity on some brands including Alzheimer's drug Namenda XR. Analysts' consensus estimates was for $3.89 billion in revenue.
Allergan also increased its outlook amidst a delay in the launch of generic competition to its dry eye medication Restasis.
"With this strong momentum in the business and based on our revised expectations for RESTASIS, we increased our full-year 2018 guidance for net revenue and non-GAAP performance net income per share," said Allergan chairman and CEO Brent Saunders in a statement.
Allergan raised its full-year net revenue outlook from $15.575 billion to $15.725 billion on a GAAP basis, compared to the previous guidance of $15.475 billion to $15.625 billion. On a non-GAAP basis, the company now expects net revenue of about $$15.55 billion to $15.7 billion, compared with the prior projection of $15.45 billion to $15.6 billion.
The company now expects non-GAAP net income per share of about $16.20 to $16.60, compared with the previous outlook of about $16 to $16.50.
The company is focusing on four areas after announcing on May 30 it planned to sell its women's health and anti-infectives units following a strategic review. The four are the medical aesthetics, eye care, central nervous system and gastrointestinal businesses.
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