Allergan reports third quarter 2016 continuing operations performance with GAAP net revenues of $3.6 billion; announces accelerated share repurchase, initiation of cash dividend.
Allergan plc reported third quarter 2016 total net revenues of $3.6 billion, a 4 percent increase versus the prior year quarter, were driven by strong performance from key brands and new product launches, offset by the loss of Asacol HD exclusivity, lower revenues for Namenda XR and IR, a decline in non-promoted established brands revenues and unfavorable foreign exchange impact.
“Our top global products powered our performance in the third quarter, including Botox, Restasis, Linzess/Constella and fillers,” said Brent Saunders, chairman, CEO and president.
“We are well positioned to leverage our growth pharma strategy – deliver strong, durable top-line growth powered by growing franchises; enhance category leadership driven by innovative, high-value treatments; develop new treatments from our open science R&D pipeline; enhance our commitment to customer intimacy; and continue to support growth through operational excellence,” added Saunders.
“We are also taking bold actions in these turbulent times when healthcare costs are in the spotlight. Through our “Social Contract with Patients,” we are defining our commitment to balancing investment and innovation with pricing and access, as well as quality and education. We are leading the way with responsible pricing ideals for our branded therapeutic products. This is our commitment to the people who count on us to find new treatments for their most pressing medical needs,” he said.
Generally accepted accounting principles (GAAP) operating loss from continuing operations in the third quarter 2016 was $266 million. Non-GAAP adjusted operating income from continuing operations in the third quarter 2016 was $1.78 billion. For the third quarter 2016, Non-GAAP adjusted EBITDA from continuing operations was $1.9 billion, compared to $2.0 billion for the third quarter 2015. The decrease was primarily due to higher research and development and selling and marketing costs. The Company reported negative cash flow from operations of $1.1 billionfor the third quarter of 2016 which was unfavorably impacted by the $2.6 billion current period payment of taxes related to the divestiture of Allergan’s generics business to Teva.
Total GAAP selling, general and administrative (SG&A) expense was $1.16 billion for the third quarter 2016 compared to $1.02 billion in the prior year period. Total non-GAAP SG&A expense was $1.0 billion for the third quarter 2016 compared to $867 million in the prior year period due primarily to new product launches and promotion for key products. GAAP research & development investment for the third quarter 2016 was $623 million. Non-GAAP R&D investment for the third quarter 2016 was $386 million, an increase over prior year due to costs related to key eye care and central nervous system development programs.
U.S. specialized therapeutics net revenues grew 12 percent driven by growth in eye care, facial aesthetics and neuroscience & urology.
(The full press release is available at PR Newswire)