Allergan PLC swung to a second-quarter loss on charges related
to recent acquisitions and other one-time items.
The results mark the first full quarter since Actavis PLC
completed its roughly $66 billion deal for the maker of wrinkle
treatment Botox in March, forming one of the top 10 drug companies
by sales.
The combined Dublin-based pharmaceutical company renamed itself
as Allergan in June.
Shares rose 36 cents to $337 in recent premarket trading
Allergan and several other health-products companies have been
on a deal-making binge in recent years with the help of low
interest rates, and to cope with pricing pressures and relatively
high U.S. corporate tax rates.
Among Allergan's recent moves, the company last month reached a
deal to sell its generics unit to Teva Pharmaceutical Industries
Ltd., a move expected to provide cash to reduce Allergan's debt
load and allow the company to focus on more lucrative brand-name
drugs. Allergan also is in the process of acquiring double-chin
treatment maker Kythera Biopharmaceuticals Inc. in a $1.2 billion
deal.
The new Allergan also has its foundation in a series of previous
deals. Actavis' predecessor company, Watson Pharmaceuticals Inc.,
acquired Swiss rival Actavis Group in October 2012 for about $5.72
billion and later adopted that name. Later, the company bought
Warner Chilcott PLC and Forest Laboratories Inc. in
multibillion-dollar deals.
Overall, Allergan reported a loss of $243.1 million, or 80 cents
a share, compared with year-earlier earnings of $48.7 million, or
28 cents a share. Excluding acquisition-related charges and other
items, per-share earnings rose to $4.41 from $3.42.
Revenue more than doubled to $5.76 billion.
Analysts polled by Thomson Reuters expected per-share profit of
$4.38 and revenue of $5.71 billion.
In the latest quarter, sales of the company's branded products
rose 21% to $3.71 billion, including $631.5 million in Botox
sales.
Generic products sales declined 1.4% to $1.58 billion.
Sales at the company's Anda distribution segment, which includes
revenue from the distribution of third-party products, grew 8.3% to
$462.4 million.
Write to Tess Stynes at tess.stynes@wsj.com
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