DUBLIN, May 7, 2019 /PRNewswire/ -- Allergan plc
(NYSE: AGN) today reported its first quarter 2019 financial results
including GAAP net revenues of $3.60
billion, a 2.0 percent decrease from the prior year
quarter.
FIRST QUARTER 2019 FINANCIAL RESULTS
(unaudited; $ in
millions, except per share amounts)
|
|
Q1
'19
|
|
|
Q1
'18
|
|
|
Q1 '19 v Q1
'18
|
|
|
Total Net
Revenues
|
|
$
|
3,597.1
|
|
|
$
|
3,672.1
|
|
|
|
(2.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
(Loss)
|
|
$
|
(2,309.2)
|
|
|
$
|
(654.0)
|
|
|
|
(253.1)
|
%
|
|
Diluted
EPS
|
|
$
|
(7.25)
|
|
|
$
|
(0.99)
|
|
|
|
(632.3)
|
%
|
|
SG&A
Expense
|
|
$
|
1,112.3
|
|
|
$
|
1,095.9
|
|
|
|
1.5
|
%
|
|
R&D
Expense
|
|
$
|
435.0
|
|
|
$
|
474.7
|
|
|
|
(8.4)
|
%
|
|
Tax Rate
|
|
|
2.8
|
%
|
|
|
70.6
|
%
|
|
|
67.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net
Revenues
|
|
$
|
3,597.1
|
|
|
$
|
3,672.1
|
|
|
|
(2.0)
|
%
|
|
Non-GAAP Operating
Income
|
|
$
|
1,625.6
|
|
|
$
|
1,759.1
|
|
|
|
(7.6)
|
%
|
|
Non-GAAP Performance
Net Income Per Share
|
|
$
|
3.79
|
|
|
$
|
3.74
|
|
|
|
1.3
|
%
|
|
Non-GAAP Adjusted
EBITDA
|
|
$
|
1,737.0
|
|
|
$
|
1,869.7
|
|
|
|
(7.1)
|
%
|
|
Non-GAAP SG&A
Expense
|
|
$
|
1,096.2
|
|
|
$
|
1,048.7
|
|
|
|
4.5
|
%
|
|
Non-GAAP R&D
Expense
|
|
$
|
397.9
|
|
|
$
|
355.8
|
|
|
|
11.8
|
%
|
|
Non-GAAP Tax
Rate
|
|
|
12.8
|
%
|
|
|
14.1
|
%
|
|
|
(1.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Executive Commentary
"Our first quarter results reflected continued growth of our
Core Business, which increased 4.4 percent year-over-year across
our four key therapeutic areas. Growth of key products such as
BOTOX® Cosmetic, BOTOX® Therapeutic,
VRAYLAR®, JUVÉDERM® and Lo
LOESTRIN® offset declines in products that lost
exclusivity and products which were divested in 2018," said
Brent Saunders, Chairman and CEO of
Allergan. "Many key R&D programs have made steady progress and
we now anticipate five regulatory approvals over the next 18
months. I appreciate the talented Allergan colleagues around the
world who are bringing our products to patients who need them and
positioning Allergan for a successful 2019 and beyond."
First Quarter 2019 Results
GAAP operating loss in the first quarter of 2019 was
$2.31 billion, including the impact
of impairments. Non-GAAP operating income in the first quarter of
2019 was $1.63 billion, a decrease of
7.6 percent versus the prior year quarter, impacted by lower
operating margin and revenues due to the impact of divestitures,
products that lost exclusivity and declines in textured breast
implants and RESTASIS®. GAAP cash flow from operations
for the first quarter of 2019 totaled $1.23
billion.
Operating Expenses
Total GAAP Selling, General and Administrative (SG&A)
Expense was $1.11 billion for the
first quarter 2019, an increase of 1.5 percent from the prior year
quarter. Total non-GAAP SG&A expense was $1.10 billion for the first quarter 2019, an
increase of 4.5 percent from the prior year quarter, primarily
related to an increase in selling and marketing spending in Medical
Aesthetics. GAAP R&D investment for the first quarter of 2019
was $435.0 million, compared to
$474.7 million in the first quarter
of 2018. Non-GAAP R&D investment for the first quarter 2019 was
$397.9 million, an increase of 11.8
percent compared to the prior year quarter, due to increased direct
project spend to support pipeline advancement.
Amortization, Tax and Capitalization
Amortization expense for the first quarter 2019 was $1.40 billion, compared to $1.70 billion in the first quarter of 2018. The
Company's GAAP tax rate was 2.8 percent in the first quarter 2019.
The Company's non-GAAP adjusted tax rate was 12.8 percent in the
first quarter 2019. As of March 31,
2019, Allergan had cash and marketable securities of
$1.78 billion and outstanding
indebtedness of $23.53 billion.
Asset Sales & Impairments, Net and In-Process R&D
Impairments
Allergan recorded a goodwill impairment of $2.47 billion in the three months ended
March 31, 2019, primarily related to
the failure of rapastinel in clinical trials for major depressive
disorder, which resulted in a lower fair value of the General
Medicine reporting unit compared to the fair value as of
December 31, 2018. The Company
excludes asset sales and impairments, net and in-process research
and development impairments from its Non-GAAP performance net
income attributable to shareholders as well as Adjusted EBITDA and
Non-GAAP Operating Income.
FIRST QUARTER 2019 BUSINESS SEGMENT RESULTS
U.S. Specialized Therapeutics
U.S. Specialized Therapeutics net revenues were $1.54 billion in the first quarter of 2019, a
decrease of 2.3 percent versus the prior year quarter. Demand
growth in BOTOX® Therapeutic, BOTOX® Cosmetic
and JUVÉDERM® Collection was partially offset by a
decline in CoolSculpting® sales compared to the
prior year quarter, lower RESTASIS® revenues due to
lower net pricing, as well as the divestiture of the Company's
Medical Dermatology business on September
20, 2018. Segment gross margin for the first quarter of 2019
was 92.2 percent. Segment contribution for the first quarter 2019
was $1.01 billion.
Medical Aesthetics
- Facial Aesthetics
-
- BOTOX® Cosmetic net revenues in the first quarter of
2019 were $229.5 million, an increase
of 16.7 percent from the prior year quarter.
- JUVÉDERM® Collection (defined as
JUVÉDERM®, VOLUMA® and other fillers) net
revenues in the first quarter of 2019 were $129.7 million, an increase of 5.6 percent versus
the prior year quarter.
- Regenerative Medicine
-
- ALLODERM® net revenues in the first quarter of 2019
were $95.0 million, a decrease of 4.5
percent versus the prior year quarter.
- Body Contouring
-
- CoolSculpting® net revenues (including both
CoolSculpting® Systems/Applicators and Consumables) in
the first quarter of 2019 were $62.9
million, a decrease of 27.8 percent from the prior year
quarter.
Neurosciences & Urology
- BOTOX® Therapeutic net revenues in the first quarter
of 2019 were $397.6 million, an
increase of 5.8 percent versus the prior year quarter.
Eye Care
- RESTASIS® net revenues in the first quarter of 2019
were $231.7 million, a decrease of
9.4 percent versus the prior year quarter.
- ALPHAGAN®/COMBIGAN® net revenues in the
first quarter of 2019 were $83.0
million, a decrease of 1.4 percent versus the prior year
quarter.
- OZURDEX® net revenues in the first quarter of 2019
were $30.3 million, an increase of
18.8 percent versus the prior year quarter.
U.S. General Medicine
U.S. General Medicine net revenues in the first quarter of 2019
were $1.25 billion, an increase of
2.1 percent versus the prior year quarter, primarily due to growth
in VRAYLAR® and Lo LOESTRIN®, partially
offset by lower revenues from products that lost exclusivity.
Segment gross margin for the first quarter of 2019 was 84.8
percent. Segment contribution for the first quarter 2019 was
$805.1 million.
Central Nervous System
- VRAYLAR® net revenues were $143.7 million in the first quarter of 2019, an
increase of 70.3 percent from the prior year quarter.
- VIIBRYD®/FETZIMA® net revenues in the
first quarter of 2019 were $85.0
million, an increase of 18.5 percent from the prior year
quarter.
Gastrointestinal, Women's Health & Diversified
Brands
- LINZESS® net revenues in the first quarter of 2019
were $161.3 million, an increase of
1.3 percent versus the prior year quarter.
- Lo LOESTRIN® net revenues in the first quarter of
2019 were $125.8 million, an increase
of 9.8 percent versus the prior year quarter.
- BYSTOLIC®/BYVALSON® net revenues in the
first quarter of 2019 were $128.3
million, a decrease of 3.4 percent from the prior year
quarter.
International
International net revenues in the first quarter of 2019 were
$801.5 million, an increase of 1.3
percent versus the prior year quarter excluding foreign exchange
impact, driven by growth in Facial Aesthetics partially impacted by
regulatory changes for textured breast implants in certain
international markets as well as lower glaucoma and eye drop
revenues due to trade buying patterns. Segment gross margin for the
first quarter of 2019 was 86.3 percent. Segment contribution was
$428.5 million.
Facial Aesthetics
- BOTOX® Cosmetic net revenues in the first quarter of
2019 were $147.4 million, an increase
of 8.5 percent versus the prior year quarter excluding foreign
exchange impact.
- JUVÉDERM® Collection net revenues in the first
quarter of 2019 were $157.8 million,
an increase of 18.3 percent versus the prior year quarter excluding
foreign exchange impact.
Eye Care
- LUMIGAN®/GANFORT® net revenues in the
first quarter of 2019 were $85.1
million, a decrease of 7.8 percent versus the prior year
quarter excluding foreign exchange impact.
- OZURDEX® net revenues in the first quarter of 2019
were $63.1 million, an increase of
6.7 percent versus the prior year quarter excluding foreign
exchange impact.
Botox® Therapeutic
- BOTOX® Therapeutic net revenues in the first quarter
of 2019 were $93.9 million, an
increase of 6.7 percent versus the prior year quarter excluding
foreign exchange impact.
PIPELINE UPDATE
Allergan R&D continues to advance its pipeline. During the
first quarter of 2019, the Company's key late-stage clinical
developments included (most recent listed first):
- Allergan and Molecular Partners announced topline safety
results from the MAPLE study of abicipar for the treatment of
neovascular age-related macular degeneration. The study used a
modified manufacturing process and demonstrated decreased
intraocular inflammation of 8.9 percent compared to greater than 15
percent in previous Phase 3 clinical trials. Allergan expects to
submit a Biologics License Application (BLA) for abicipar with the
U.S. Food and Drug Administration (FDA) in the first half of
2019.
- Allergan announced the FDA approved the company's supplemental
New Drug Application (sNDA) for
AVYCAZ® (ceftazidime and avibactam), expanding
the label to include children and infants (patients three months
and older) for the treatment of complicated intra-abdominal
infections in combination with metronidazole and of complicated
urinary tract infections.
- The FDA accepted Allergan's New Drug Application (NDA) for
ubrogepant for the acute treatment of migraine. The NDA filing is
based on positive results from two Phase 3 clinical trials
demonstrating the efficacy, safety and tolerability of ubrogepant,
an oral CGRP receptor antagonist, as well as two additional
positive safety studies. A 10-month review period has been assigned
with a Prescription Drug User Fee Act (PDUFA) date in the fourth
quarter of 2019.
- The FDA accepted Allergan's supplemental biologics license
applications (sBLAs) to expand the
BOTOX® (onabotulinumtoxinA) label for the treatment
of pediatric patients ages two years and older with upper and lower
limb spasticity. The pediatric upper limb spasticity
indication has been designated a 6-month Priority Review with a
PDUFA date expected in the second quarter of 2019. The
pediatric lower limb spasticity indication will undergo a standard
10-month review with a PDUFA date expected in the fourth quarter of
2019.
- Allergan announced topline results from three Phase 3 studies
of rapastinel as an adjunctive treatment of Major Depressive
Disorder. In all three pivotal acute studies, rapastinel did not
meet primary and key secondary endpoints. Additionally, an interim
analysis of a relapse prevention study of rapastinel suggested the
primary and key secondary endpoints would not be met.
- Allergan reported positive topline results from two Phase 3
clinical trials of Bimatoprost SR, a first-in-class
sustained-release, biodegradable implant for the reduction of
intraocular pressure in patients with open-angle glaucoma or ocular
hypertension. Allergan anticipates submitting an NDA to
the FDA in the first half of 2019.
In addition to first quarter 2019 pipeline developments,
Allergan anticipates a regulatory decision from the FDA in
May 2019 for the Company's sNDA for
VRAYLAR® (cariprazine) seeking to expand the indication
to include the treatment of depressive episodes associated with
bipolar I disorder (bipolar depression) in adults.
SECOND QUARTER AND FULL YEAR 2019 GUIDANCE
|
Previous
Guidance
|
|
Current
Guidance
|
|
Twelve Months
Ending December 31, 2019
|
|
Twelve Months
Ending December 31, 2019
|
|
GAAP
|
NON-GAAP
|
|
GAAP
|
NON-GAAP
|
|
|
|
|
|
|
Total Net
Revenues
|
$15.000 - $15.300
billion
|
$15.000 - $15.300
billion
|
|
$15.125 - $15.425
billion
|
$15.100 - $15.400
billion
|
Gross Margin (as a
% of revenues)
|
85.0% -
85.5%
|
85.0% -
85.5%
|
|
85.0% -
85.5%
|
85.0% -
85.5%
|
SG&A
Expense
|
$4.1 - $4.3
billion
|
$4.1 - $4.3
billion
|
|
$4.1 - $4.3
billion
|
$4.1 - $4.3
billion
|
R&D
Expense
|
$1.8 - $1.9
billion
|
$1.6 - $1.7
billion
|
|
$1.8 - $1.9
billion
|
$1.6 - $1.7
billion
|
Net Interest
Expense/Other Income (Expense)
|
~ $775.0
million
|
~ $800.0
million
|
|
~ $775.0
million
|
~ $800.0
million
|
Tax
Rate
|
24.5% -
25.0%
|
13.0% -
13.5%
|
|
~ 1.0%
|
13.0% -
13.5%
|
Net Income /
(Loss) Per Share1
|
≥ $1.14
|
≥ $16.36
|
|
>
($5.70)
|
>
$16.55
|
Average 2019 Share
Count2
|
~ 332.0
million
|
~ 332.0
million
|
|
~ 329.0
million
|
~ 332.0
million
|
Cash Flow from
Operations
|
~ $5.0 - $5.5
billion
|
n.a.
|
|
~ $5.0 - $5.5
billion
|
n.a.
|
|
|
|
|
Three Months
Ending June 30, 2019
|
|
|
|
|
GAAP
|
NON-GAAP
|
|
|
|
|
|
|
Total Net
Revenues
|
|
|
|
$3.875 - $4.025
billion
|
$3.850 - $4.000
billion
|
Net Income Per
Share1
|
|
|
|
$0.50 -
$0.70
|
$4.20 -
$4.40
|
|
|
|
|
|
|
(1) GAAP
represents EPS for ordinary shareholders. GAAP income per share
includes the impact of amortization of approximately $5.6 billion.
Non-GAAP represents performance net income per
share.
|
(2) GAAP EPS
shares do not include dilution of shares when earnings are a net
loss. As such, the dilution impact of outstanding equity awards is
not included in the forecasted shares.
|
FIRST QUARTER 2019 CONFERENCE CALL AND WEBCAST
DETAILS
Allergan will host a conference call and webcast today,
Tuesday, May 7, at 8:30 a.m. Eastern Time to discuss its first
quarter 2019 results. The dial-in number to access the call is
U.S./Canada (877) 251-7980,
International (706) 643-1573, and the conference ID is
7466378. A replay of the conference call will also be
available beginning approximately two hours after the call's
conclusion and will remain available through 11:30 p.m. Eastern Time on June 7, 2019. The replay may be accessed by
dialing (855) 859-2056 or (404) 537-3406 and entering the
conference ID 7466378.
To access the webcast, please visit Allergan's Investor
Relations website at
https://www.allergan.com/investors/events-presentations. A replay
of the webcast will also be available on Allergan's Investor
Relations website.
Allergan
Contacts:
|
|
Investors:
|
|
Manisha Narasimhan,
PhD
|
(862)
261-7162
|
Christine
Chiou
|
(862)
261-7396
|
|
|
Media:
|
|
Amy Rose
|
(862)
289-3072
|
Lisa Brown
|
(862)
261-7320
|
About Allergan plc
Allergan plc (NYSE: AGN), headquartered in Dublin, Ireland, is a global pharmaceutical
leader focused on developing, manufacturing and commercializing
branded pharmaceutical, device, biologic, surgical and regenerative
medicine products for patients around the world. Allergan markets a
portfolio of leading brands and best-in-class products primarily
focused on four key therapeutic areas including medical aesthetics,
eye care, central nervous system and gastroenterology. As part of
its approach to delivering innovation for better patient care,
Allergan has built one of the broadest pharmaceutical and device
research and development pipelines in the industry.
With colleagues and commercial operations located in
approximately 100 countries, Allergan is committed to working with
physicians, healthcare providers and patients to deliver innovative
and meaningful treatments that help people around the world live
longer, healthier lives every day.
For more information, visit Allergan's website
at www.Allergan.com.
Forward-Looking Statement
Statements contained in this press release that refer to future
events or other non-historical facts are forward-looking statements
that reflect Allergan's current perspective on existing trends and
information as of the date of this release. Actual results may
differ materially from Allergan's current expectations depending
upon a number of factors affecting Allergan's business. These
factors include, among others, the difficulty of predicting the
timing or outcome of FDA approvals or actions, if any; the impact
of competitive products and pricing; market acceptance of and
continued demand for Allergan's products; the impact of uncertainty
around timing of generic entry related to key products, including
RESTASIS®, on our financial results; risks associated
with divestitures, acquisitions, mergers and joint ventures; risks
related to impairments; uncertainty associated with financial
projections, projected debt reduction, projected cost reductions,
projected synergies, restructurings, increased costs, and adverse
tax consequences; difficulties or delays in manufacturing; and
other risks and uncertainties detailed in Allergan's periodic
public filings with the Securities and Exchange Commission,
including but not limited to Allergan's Annual Report on Form 10-K
for the year ended December 31, 2018.
Except as expressly required by law, Allergan disclaims any intent
or obligation to update these forward-looking statements.
The following
presents Allergan plc's statement of operations for the three
months ended March 31, 2019 and 2018:
|
Table
1
|
ALLERGAN
PLC
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited; in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31
|
|
|
2019
|
|
2018
|
Net
revenues
|
|
$
|
3,597.1
|
|
$
|
3,672.1
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Cost of sales
(excludes amortization and impairment of acquired intangibles
including product rights)
|
|
|
497.8
|
|
|
522.8
|
Research and
development
|
|
|
435.0
|
|
|
474.7
|
Selling, general and
administrative
|
|
|
1,112.3
|
|
|
1,095.9
|
Amortization
|
|
|
1,399.4
|
|
|
1,697.6
|
In-process research
and development impairments
|
|
|
-
|
|
|
522.0
|
Goodwill and other
asset impairments / sales, net
|
|
|
2,461.8
|
|
|
13.1
|
Total operating
expenses
|
|
|
5,906.3
|
|
|
4,326.1
|
Operating
(loss)
|
|
|
(2,309.2)
|
|
|
(654.0)
|
|
|
|
|
|
|
|
Non-operating income
(expense):
|
|
|
|
|
|
|
Interest
income
|
|
|
21.3
|
|
|
17.3
|
Interest
(expense)
|
|
|
(201.8)
|
|
|
(250.6)
|
Other income
(expense), net
|
|
|
13.8
|
|
|
(78.8)
|
Total other income
(expense), net
|
|
|
(166.7)
|
|
|
(312.1)
|
(Loss) before income
taxes and noncontrolling interest
|
|
|
(2,475.9)
|
|
|
(966.1)
|
(Benefit) for income
taxes
|
|
|
(68.6)
|
|
|
(682.2)
|
Net (loss)
|
|
|
(2,407.3)
|
|
|
(283.9)
|
(Income) attributable
to noncontrolling interest
|
|
|
(0.7)
|
|
|
(2.2)
|
Net (loss)
attributable to shareholders
|
|
|
(2,408.0)
|
|
|
(286.1)
|
Dividends on
preferred shares
|
|
|
-
|
|
|
46.4
|
Net (loss)
attributable to ordinary shareholders
|
|
$
|
(2,408.0)
|
|
$
|
(332.5)
|
|
|
|
|
|
|
|
(Loss) per share
attributable to ordinary shareholders:
|
|
|
|
|
|
|
Net (loss) per share
- basic
|
|
$
|
(7.25)
|
|
$
|
(0.99)
|
Net (loss) per share
- diluted
|
|
|
(7.25)
|
|
|
(0.99)
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
332.0
|
|
|
334.6
|
Diluted
|
|
|
332.0
|
|
|
334.6
|
The following table
details Allergan plc's product revenue for significant promoted
products globally, within the U.S., and international for the three
months ended March 31, 2019 and 2018.
|
|
|
|
ALLERGAN
PLC
|
|
NET REVENUES TOP
GLOBAL PRODUCTS
|
|
(Unaudited; in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2019
|
|
|
Three Months Ended
March 31, 2018
|
|
|
Movement
|
|
|
|
US
Specialized
Therapeutics
|
|
|
US
General
Medicine
|
|
|
International
|
|
|
Corporate
|
|
|
Total
|
|
|
US
Specialized
Therapeutics
|
|
|
US
General
Medicine
|
|
|
International
|
|
|
Corporate
|
|
|
Total
|
|
|
Total
Change
|
|
|
Total
Change
Percentage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Botox®
|
|
$
|
627.1
|
|
|
$
|
-
|
|
|
$
|
241.3
|
|
|
$
|
-
|
|
|
$
|
868.4
|
|
|
$
|
572.5
|
|
|
$
|
-
|
|
|
$
|
244.8
|
|
|
$
|
-
|
|
|
$
|
817.3
|
|
|
$
|
51.1
|
|
|
|
6.3
|
%
|
Restasis®
|
|
|
231.7
|
|
|
|
-
|
|
|
|
10.4
|
|
|
|
-
|
|
|
|
242.1
|
|
|
|
255.8
|
|
|
|
-
|
|
|
|
18.3
|
|
|
|
-
|
|
|
|
274.1
|
|
|
|
(32.0)
|
|
|
|
(11.7)
|
%
|
Juvederm®
Collection
|
|
|
129.7
|
|
|
|
-
|
|
|
|
157.8
|
|
|
|
-
|
|
|
|
287.5
|
|
|
|
122.8
|
|
|
|
-
|
|
|
|
146.1
|
|
|
|
-
|
|
|
|
268.9
|
|
|
|
18.6
|
|
|
|
6.9
|
%
|
Lumigan®/Ganfort®
|
|
|
57.7
|
|
|
|
-
|
|
|
|
85.1
|
|
|
|
-
|
|
|
|
142.8
|
|
|
|
66.8
|
|
|
|
-
|
|
|
|
100.4
|
|
|
|
-
|
|
|
|
167.2
|
|
|
|
(24.4)
|
|
|
|
(14.6)
|
%
|
Linzess®/Constella®
|
|
|
-
|
|
|
|
161.3
|
|
|
|
5.5
|
|
|
|
-
|
|
|
|
166.8
|
|
|
|
-
|
|
|
|
159.3
|
|
|
|
5.6
|
|
|
|
-
|
|
|
|
164.9
|
|
|
|
1.9
|
|
|
|
1.2
|
%
|
Bystolic®
/Byvalson®
|
|
|
-
|
|
|
|
128.3
|
|
|
|
0.4
|
|
|
|
-
|
|
|
|
128.7
|
|
|
|
-
|
|
|
|
132.8
|
|
|
|
0.5
|
|
|
|
-
|
|
|
|
133.3
|
|
|
|
(4.6)
|
|
|
|
(3.5)
|
%
|
Alphagan®/Combigan®
|
|
|
83.0
|
|
|
|
-
|
|
|
|
37.6
|
|
|
|
-
|
|
|
|
120.6
|
|
|
|
84.2
|
|
|
|
-
|
|
|
|
44.2
|
|
|
|
-
|
|
|
|
128.4
|
|
|
|
(7.8)
|
|
|
|
(6.1)
|
%
|
Lo
Loestrin®
|
|
|
-
|
|
|
|
125.8
|
|
|
|
-
|
|
|
|
-
|
|
|
|
125.8
|
|
|
|
-
|
|
|
|
114.6
|
|
|
|
-
|
|
|
|
-
|
|
|
|
114.6
|
|
|
|
11.2
|
|
|
|
9.8
|
%
|
Breast
Implants
|
|
|
61.2
|
|
|
|
-
|
|
|
|
11.2
|
|
|
|
-
|
|
|
|
72.4
|
|
|
|
60.7
|
|
|
|
-
|
|
|
|
44.1
|
|
|
|
-
|
|
|
|
104.8
|
|
|
|
(32.4)
|
|
|
|
(30.9)
|
%
|
Viibryd®/Fetzima®
|
|
|
-
|
|
|
|
85.0
|
|
|
|
2.1
|
|
|
|
-
|
|
|
|
87.1
|
|
|
|
-
|
|
|
|
71.7
|
|
|
|
1.5
|
|
|
|
-
|
|
|
|
73.2
|
|
|
|
13.9
|
|
|
|
19.0
|
%
|
Eye Drops
|
|
|
49.4
|
|
|
|
-
|
|
|
|
55.4
|
|
|
|
-
|
|
|
|
104.8
|
|
|
|
46.2
|
|
|
|
-
|
|
|
|
68.8
|
|
|
|
-
|
|
|
|
115.0
|
|
|
|
(10.2)
|
|
|
|
(8.9)
|
%
|
Asacol®/Delzicol®
|
|
|
-
|
|
|
|
24.7
|
|
|
|
10.3
|
|
|
|
-
|
|
|
|
35.0
|
|
|
|
-
|
|
|
|
38.2
|
|
|
|
11.7
|
|
|
|
-
|
|
|
|
49.9
|
|
|
|
(14.9)
|
|
|
|
(29.9)
|
%
|
Coolsculpting®
Consumables
|
|
|
47.8
|
|
|
|
-
|
|
|
|
17.8
|
|
|
|
-
|
|
|
|
65.6
|
|
|
|
53.4
|
|
|
|
-
|
|
|
|
8.1
|
|
|
|
-
|
|
|
|
61.5
|
|
|
|
4.1
|
|
|
|
6.7
|
%
|
Coolsculpting® Systems
& Add On Applicators
|
|
|
15.1
|
|
|
|
-
|
|
|
|
10.6
|
|
|
|
-
|
|
|
|
25.7
|
|
|
|
33.7
|
|
|
|
-
|
|
|
|
1.1
|
|
|
|
-
|
|
|
|
34.8
|
|
|
|
(9.1)
|
|
|
|
(26.1)
|
%
|
Ozurdex ®
|
|
|
30.3
|
|
|
|
-
|
|
|
|
63.1
|
|
|
|
-
|
|
|
|
93.4
|
|
|
|
25.5
|
|
|
|
-
|
|
|
|
64.4
|
|
|
|
-
|
|
|
|
89.9
|
|
|
|
3.5
|
|
|
|
3.9
|
%
|
Carafate ® /Sulcrate
®
|
|
|
-
|
|
|
|
54.3
|
|
|
|
0.6
|
|
|
|
-
|
|
|
|
54.9
|
|
|
|
-
|
|
|
|
56.0
|
|
|
|
0.7
|
|
|
|
-
|
|
|
|
56.7
|
|
|
|
(1.8)
|
|
|
|
(3.2)
|
%
|
Aczone®
|
|
|
1.6
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1.6
|
|
|
|
16.0
|
|
|
|
-
|
|
|
|
0.1
|
|
|
|
-
|
|
|
|
16.1
|
|
|
|
(14.5)
|
|
|
|
(90.1)
|
%
|
Zenpep®
|
|
|
-
|
|
|
|
63.0
|
|
|
|
-
|
|
|
|
-
|
|
|
|
63.0
|
|
|
|
-
|
|
|
|
52.9
|
|
|
|
-
|
|
|
|
-
|
|
|
|
52.9
|
|
|
|
10.1
|
|
|
|
19.1
|
%
|
Canasa®/Salofalk®
|
|
|
-
|
|
|
|
10.2
|
|
|
|
3.6
|
|
|
|
-
|
|
|
|
13.8
|
|
|
|
-
|
|
|
|
38.6
|
|
|
|
4.2
|
|
|
|
-
|
|
|
|
42.8
|
|
|
|
(29.0)
|
|
|
|
(67.8)
|
%
|
Vraylar®
|
|
|
-
|
|
|
|
143.7
|
|
|
|
-
|
|
|
|
-
|
|
|
|
143.7
|
|
|
|
-
|
|
|
|
84.4
|
|
|
|
-
|
|
|
|
-
|
|
|
|
84.4
|
|
|
|
59.3
|
|
|
|
70.3
|
%
|
Saphris®
|
|
|
-
|
|
|
|
31.9
|
|
|
|
-
|
|
|
|
-
|
|
|
|
31.9
|
|
|
|
-
|
|
|
|
32.7
|
|
|
|
-
|
|
|
|
-
|
|
|
|
32.7
|
|
|
|
(0.8)
|
|
|
|
(2.4)
|
%
|
Viberzi®
|
|
|
-
|
|
|
|
37.2
|
|
|
|
0.3
|
|
|
|
-
|
|
|
|
37.5
|
|
|
|
-
|
|
|
|
35.9
|
|
|
|
0.1
|
|
|
|
-
|
|
|
|
36.0
|
|
|
|
1.5
|
|
|
|
4.2
|
%
|
Teflaro®
|
|
|
-
|
|
|
|
33.5
|
|
|
|
0.2
|
|
|
|
-
|
|
|
|
33.7
|
|
|
|
-
|
|
|
|
32.2
|
|
|
|
-
|
|
|
|
-
|
|
|
|
32.2
|
|
|
|
1.5
|
|
|
|
4.7
|
%
|
Namzaric®
|
|
|
-
|
|
|
|
23.4
|
|
|
|
-
|
|
|
|
-
|
|
|
|
23.4
|
|
|
|
-
|
|
|
|
33.4
|
|
|
|
-
|
|
|
|
-
|
|
|
|
33.4
|
|
|
|
(10.0)
|
|
|
|
(29.9)
|
%
|
Rapaflo®
|
|
|
11.8
|
|
|
|
-
|
|
|
|
0.6
|
|
|
|
-
|
|
|
|
12.4
|
|
|
|
22.8
|
|
|
|
-
|
|
|
|
1.2
|
|
|
|
-
|
|
|
|
24.0
|
|
|
|
(11.6)
|
|
|
|
(48.3)
|
%
|
Skin Care
|
|
|
34.7
|
|
|
|
-
|
|
|
|
2.7
|
|
|
|
-
|
|
|
|
37.4
|
|
|
|
31.9
|
|
|
|
-
|
|
|
|
3.8
|
|
|
|
-
|
|
|
|
35.7
|
|
|
|
1.7
|
|
|
|
4.8
|
%
|
Kybella®
/Belkyra®
|
|
|
7.3
|
|
|
|
-
|
|
|
|
1.6
|
|
|
|
-
|
|
|
|
8.9
|
|
|
|
8.2
|
|
|
|
-
|
|
|
|
1.4
|
|
|
|
-
|
|
|
|
9.6
|
|
|
|
(0.7)
|
|
|
|
(7.3)
|
%
|
Alloderm®
|
|
|
95.0
|
|
|
|
-
|
|
|
|
1.6
|
|
|
|
-
|
|
|
|
96.6
|
|
|
|
99.5
|
|
|
|
-
|
|
|
|
2.2
|
|
|
|
-
|
|
|
|
101.7
|
|
|
|
(5.1)
|
|
|
|
(5.0)
|
%
|
Dalvance®
|
|
|
-
|
|
|
|
12.0
|
|
|
|
-
|
|
|
|
-
|
|
|
|
12.0
|
|
|
|
-
|
|
|
|
11.9
|
|
|
|
-
|
|
|
|
-
|
|
|
|
11.9
|
|
|
|
0.1
|
|
|
|
0.8
|
%
|
Avycaz®
|
|
|
-
|
|
|
|
29.7
|
|
|
|
-
|
|
|
|
-
|
|
|
|
29.7
|
|
|
|
-
|
|
|
|
21.8
|
|
|
|
-
|
|
|
|
-
|
|
|
|
21.8
|
|
|
|
7.9
|
|
|
|
36.2
|
%
|
Liletta®
|
|
|
-
|
|
|
|
14.8
|
|
|
|
-
|
|
|
|
-
|
|
|
|
14.8
|
|
|
|
-
|
|
|
|
8.1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8.1
|
|
|
|
6.7
|
|
|
|
82.7
|
%
|
Namenda®
|
|
|
-
|
|
|
|
9.5
|
|
|
|
-
|
|
|
|
-
|
|
|
|
9.5
|
|
|
|
-
|
|
|
|
40.6
|
|
|
|
-
|
|
|
|
-
|
|
|
|
40.6
|
|
|
|
(31.1)
|
|
|
|
(76.6)
|
%
|
Armour
Thyroid
|
|
|
-
|
|
|
|
50.0
|
|
|
|
-
|
|
|
|
-
|
|
|
|
50.0
|
|
|
|
-
|
|
|
|
48.2
|
|
|
|
-
|
|
|
|
-
|
|
|
|
48.2
|
|
|
|
1.8
|
|
|
|
3.7
|
%
|
Savella®
|
|
|
-
|
|
|
|
20.7
|
|
|
|
-
|
|
|
|
-
|
|
|
|
20.7
|
|
|
|
-
|
|
|
|
19.9
|
|
|
|
-
|
|
|
|
-
|
|
|
|
19.9
|
|
|
|
0.8
|
|
|
|
4.0
|
%
|
Other Products
Revenues
|
|
|
59.5
|
|
|
|
190.9
|
|
|
|
81.7
|
|
|
|
2.8
|
|
|
|
334.9
|
|
|
|
78.6
|
|
|
|
190.5
|
|
|
|
90.7
|
|
|
|
5.8
|
|
|
|
365.6
|
|
|
|
(30.7)
|
|
|
|
(8.4)
|
%
|
Total Net
Revenues
|
|
$
|
1,542.9
|
|
|
$
|
1,249.9
|
|
|
$
|
801.5
|
|
|
$
|
2.8
|
|
|
|
3,597.1
|
|
|
$
|
1,578.6
|
|
|
$
|
1,223.7
|
|
|
$
|
864.0
|
|
|
$
|
5.8
|
|
|
|
3,672.1
|
|
|
$
|
(75.0)
|
|
|
|
(2.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Botox® is comprised of the
following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Botox®
Therapeutics
|
|
|
397.6
|
|
|
|
-
|
|
|
|
93.9
|
|
|
|
-
|
|
|
|
491.5
|
|
|
|
375.8
|
|
|
|
-
|
|
|
|
96.2
|
|
|
|
-
|
|
|
|
472.0
|
|
|
|
19.5
|
|
|
|
4.1
|
%
|
Botox®
Cosmetics
|
|
|
229.5
|
|
|
|
-
|
|
|
|
147.4
|
|
|
|
-
|
|
|
|
376.9
|
|
|
|
196.7
|
|
|
|
-
|
|
|
|
148.6
|
|
|
|
-
|
|
|
|
345.3
|
|
|
|
31.6
|
|
|
|
9.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table
presents Allergan plc's Condensed Consolidated Balance Sheets as of
March 31, 2019 and December 31, 2018.
|
|
Table
3
|
|
ALLERGAN
PLC
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited; in
millions)
|
|
|
|
March
31
|
|
|
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
788.5
|
|
|
$
|
880.4
|
|
Marketable
securities
|
|
|
995.2
|
|
|
|
1,026.9
|
|
Accounts receivable,
net
|
|
|
2,731.2
|
|
|
|
2,868.1
|
|
Inventories
|
|
|
943.2
|
|
|
|
846.9
|
|
Prepaid expenses and
other current assets
|
|
|
785.5
|
|
|
|
819.1
|
|
Assets held for
sale
|
|
|
942.9
|
|
|
|
916.2
|
|
Property, plant and
equipment, net
|
|
|
1,781.1
|
|
|
|
1,787.0
|
|
Investments and other
assets
|
|
|
3,012.1
|
|
|
|
3,034.3
|
|
Right of use asset -
operating leases
|
|
|
455.4
|
|
|
|
-
|
|
Product rights and
other intangibles
|
|
|
42,264.6
|
|
|
|
43,695.4
|
|
Goodwill
|
|
|
43,336.6
|
|
|
|
45,913.3
|
|
Total
assets
|
|
$
|
98,036.3
|
|
|
$
|
101,787.6
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Equity
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
$
|
4,761.3
|
|
|
$
|
4,859.6
|
|
Lease
liability
|
|
|
531.3
|
|
|
$
|
-
|
|
Current and long-term
debt and capital leases
|
|
|
23,525.9
|
|
|
|
23,797.7
|
|
Deferred income taxes
and other liabilities
|
|
|
7,658.2
|
|
|
|
7,999.3
|
|
Total
equity
|
|
|
61,559.6
|
|
|
|
65,131.0
|
|
Total liabilities and
equity
|
|
$
|
98,036.3
|
|
|
$
|
101,787.6
|
|
The following table
presents Allergan plc's Consolidated Statements of Cash Flows for
the three months ended March 31, 2019 and 2018.
|
Table
4
|
|
|
ALLERGAN
PLC
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited; in
millions)
|
|
|
Three Months Ended March
31,
|
|
|
|
|
2019
|
|
|
2018
|
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
|
|
|
Net (loss) /
income
|
|
$
|
(2,407.3)
|
|
|
$
|
(283.9)
|
|
|
Reconciliation to net
cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
47.5
|
|
|
|
56.1
|
|
|
Amortization
|
|
|
1,399.4
|
|
|
|
1,697.6
|
|
|
Provision for
inventory reserve
|
|
|
18.8
|
|
|
|
14.2
|
|
|
Share-based
compensation
|
|
|
52.3
|
|
|
|
72.5
|
|
|
Deferred income tax
benefit
|
|
|
(229.7)
|
|
|
|
(1,026.4)
|
|
|
In-process research
and development impairments
|
|
|
-
|
|
|
|
522.0
|
|
|
Goodwill and other
impairments and asset sales, net
|
|
|
2,461.8
|
|
|
|
13.1
|
|
|
Loss on forward sale
of Teva shares
|
|
|
-
|
|
|
|
77.7
|
|
|
Non-cash
extinguishment of debt
|
|
|
0.3
|
|
|
|
-
|
|
|
Amortization of
deferred financing costs
|
|
|
4.6
|
|
|
|
6.3
|
|
|
Non-cash lease
expense
|
|
|
30.1
|
|
|
|
-
|
|
|
Contingent
consideration adjustments,
including
accretion
|
|
|
18.7
|
|
|
|
5.3
|
|
|
Other, net
|
|
|
(10.3)
|
|
|
|
6.5
|
|
|
Changes in assets and
liabilities (net of effects
of
acquisitions):
|
|
|
|
|
|
|
|
|
|
Decrease / (increase)
in accounts receivable, net
|
|
|
132.4
|
|
|
|
259.1
|
|
|
Decrease / (increase)
in inventories
|
|
|
(128.3)
|
|
|
|
(52.7)
|
|
|
Decrease / (increase)
in prepaid expenses
and other current
assets
|
|
|
36.2
|
|
|
|
(0.6)
|
|
|
Increase / (decrease)
in accounts payable
and accrued
expenses
|
|
|
(199.8)
|
|
|
|
(231.6)
|
|
|
Increase / (decrease)
in income and other
taxes
payable
|
|
|
60.0
|
|
|
|
336.6
|
|
|
Increase / (decrease)
in other assets and liabilities
|
|
|
(52.7)
|
|
|
|
(13.5)
|
|
|
Net cash provided by
operating activities
|
|
|
1,234.0
|
|
|
|
1,458.3
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
|
|
(64.8)
|
|
|
|
(46.4)
|
|
|
Additions to product
rights and other intangibles
|
|
|
(7.5)
|
|
|
|
-
|
|
|
Additions to
investments
|
|
|
(538.2)
|
|
|
|
(1,455.9)
|
|
|
Proceeds from sale of
investments and other assets
|
|
|
569.1
|
|
|
|
4,889.5
|
|
|
Payments to settle
Teva related matters
|
|
|
-
|
|
|
|
(466.0)
|
|
|
Proceeds from sales
of property, plant and equipment
|
|
|
17.2
|
|
|
|
11.1
|
|
|
Acquisitions of
businesses, net of cash acquired
|
|
|
(80.6)
|
|
|
|
-
|
|
|
Net cash (used in)
investing activities
|
|
|
(104.8)
|
|
|
|
2,932.3
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from
borrowings on long-term indebtedness, including credit
facility
|
|
|
-
|
|
|
|
709.0
|
|
|
Proceeds from Forward
Sale of Teva securities
|
|
|
-
|
|
|
|
372.3
|
|
|
Payments on debt,
including capital lease obligations
|
|
|
(159.4)
|
|
|
|
(4,322.1)
|
|
|
Proceeds from stock
plans
|
|
|
9.7
|
|
|
|
35.5
|
|
|
Other financing,
including contingent consideration
|
|
|
(2.0)
|
|
|
|
(9.3)
|
|
|
Payments to settle
Teva related matters
|
|
|
-
|
|
|
|
(234.0)
|
|
|
Repurchase of
ordinary shares
|
|
|
(829.2)
|
|
|
|
(1,439.6)
|
|
|
Dividends
|
|
|
(246.1)
|
|
|
|
(319.5)
|
|
|
Net cash (used in)
financing activities
|
|
|
(1,227.0)
|
|
|
|
(5,207.7)
|
|
|
Effect of currency
exchange rate changes on cash
and cash
equivalents
|
|
|
5.9
|
|
|
|
(5.3)
|
|
|
Net increase /
(decrease) in cash and cash equivalents
|
|
|
(91.9)
|
|
|
|
(822.4)
|
|
|
Cash and cash
equivalents at beginning of period
|
|
|
880.4
|
|
|
|
1,817.2
|
|
|
Cash and cash
equivalents at end of period
|
|
$
|
788.5
|
|
|
$
|
994.8
|
|
|
Non-GAAP performance
net income per share is used by management as one of the primary
metrics in evaluating the Company's performance. We believe
that Non-GAAP performance net income per share enhances the
comparability of our results between periods and provides
additional information and transparency to investors on adjustments
and other items that are not indicative of the Company's current
and future operating performance. These are the financial
measures used by our management team to evaluate our operating
performance and make day to day operating decisions. We
define non-GAAP adjustments to the reported GAAP measures as GAAP
results adjusted for the following net of tax: (i) amortization
expenses, (ii) global supply chain and operational excellence
initiatives or other restructurings of a similar nature, (iii)
acquisition, divestiture, integration and licensing charges, (iv)
accretion and fair market value adjustments on contingent
liabilities, (v) impairment/asset sales and related costs,
including the exclusion of discontinued operations, (vi) legal
settlements and (vii) other unusual charges or expenses.
Non-GAAP performance net income per share is not, and should not be
viewed as, a substitute for reported GAAP continuing operations
loss per share. The Company has consistently excluded
amortization and impairments of all intangible assets, including
the product rights that generate a significant portion of our
ongoing revenue. The Company's total accumulated amortization,
including impairments of currently marketed products, related to
our intangible assets as of March 31, 2019 and December 31, 2018
was $33.6 billion and $32.3 billion, respectively, and is expected
to continue to be a material non-GAAP adjustment. The
following table presents Allergan plc's GAAP to Non-GAAP
adjustments for the three months ended March 31, 2019 and
2018:
|
|
Table
5
|
|
ALLERGAN
PLC
|
|
GAAP TO NON-GAAP
ADJUSTMENTS
|
|
(Unaudited; in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2019
|
|
|
|
Net
Revenue
|
|
|
COGS
|
|
|
Research &
Development
|
|
|
Selling &
Marketing
|
|
|
General &
Administrative
|
|
|
Amortization
|
|
|
Asset sales
&
Impairments,
net
|
|
|
Interest
expense,
net
|
|
|
Other
income
(expense)
|
|
|
Income
taxes
|
|
GAAP
|
|
$
|
3,597.1
|
|
|
$
|
497.8
|
|
|
$
|
435.0
|
|
|
$
|
804.0
|
|
|
$
|
308.3
|
|
|
$
|
1,399.4
|
|
|
$
|
2,461.8
|
|
|
$
|
(180.5)
|
|
|
$
|
13.8
|
|
|
$
|
(68.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase accounting
impact on stock-based compensation for acquired awards
|
|
|
-
|
|
|
|
(0.3)
|
|
|
|
(0.4)
|
|
|
|
(0.9)
|
|
|
|
(0.3)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Severance due to
integration of acquired entities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.8)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Non-acquisition
related severance and restructuring
|
|
|
-
|
|
|
|
(4.6)
|
|
|
|
-
|
|
|
|
1.8
|
|
|
|
(0.1)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Costs associated with
disposed businesses
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.3)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Integration charges
of acquired businesses
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.1)
|
|
|
|
-
|
|
|
|
(4.3)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Milestones and
upfront expenses for asset acquisitions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Akarna Therapeutics,
Ltd
|
|
|
-
|
|
|
|
-
|
|
|
|
(10.0)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Other
|
|
|
-
|
|
|
|
-
|
|
|
|
(24.1)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Accretion and
fair-value adjustments to contingent consideration
|
|
|
-
|
|
|
|
(16.2)
|
|
|
|
(2.5)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Non-cash amortization
of debt premium recognized in purchase accounting
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5.5)
|
|
|
|
-
|
|
|
|
-
|
|
Impairment of
goodwill
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,467.0)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Asset sales and
impairments, other
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5.2
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Litigation settlement
related charges
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(10.4)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Other
adjustments
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.8)
|
|
|
|
(1,399.4)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.3)
|
|
|
|
-
|
|
Income taxes on
pre-tax adjustments
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
186.6
|
|
Discrete income tax
events
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
68.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjusted
|
|
$
|
3,597.1
|
|
|
$
|
476.7
|
|
|
$
|
397.9
|
|
|
$
|
804.9
|
|
|
$
|
291.3
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(186.0)
|
|
|
$
|
13.5
|
|
|
$
|
186.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2018
|
|
|
|
Net
Revenue
|
|
|
COGS
|
|
|
Research &
Development
|
|
|
Selling &
Marketing
|
|
|
General &
Administrative
|
|
|
Amortization
|
|
|
Asset sales
&
Impairments,
net
|
|
|
Interest
expense,
net
|
|
|
Other
income
(expense)
|
|
|
Income
taxes
|
|
GAAP
|
|
$
|
3,672.1
|
|
|
$
|
522.8
|
|
|
$
|
474.7
|
|
|
$
|
800.0
|
|
|
$
|
295.9
|
|
|
$
|
1,697.6
|
|
|
$
|
535.1
|
|
|
$
|
(233.3)
|
|
|
$
|
(78.8)
|
|
|
$
|
(682.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase accounting
impact on stock-based compensation for acquired awards
|
|
|
-
|
|
|
|
(1.1)
|
|
|
|
(2.8)
|
|
|
|
(4.3)
|
|
|
|
(1.6)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Severance due to
integration of acquired entities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.7)
|
|
|
|
(0.5)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Non-acquisition
related severance and restructuring
|
|
|
-
|
|
|
|
(12.6)
|
|
|
|
(0.6)
|
|
|
|
(10.3)
|
|
|
|
(7.3)
|
|
|
|
-
|
|
|
|
(13.6)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Costs associated with
disposed businesses
|
|
|
-
|
|
|
|
(0.5)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2.6)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Integration charges
of acquired businesses
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.2)
|
|
|
|
(0.2)
|
|
|
|
(10.7)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Milestones and
upfront expenses for asset acquisitions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chase Pharmaceuticals
Corporation
|
|
|
-
|
|
|
|
-
|
|
|
|
(75.0)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Repros Therapeutics,
Inc.
|
|
|
-
|
|
|
|
-
|
|
|
|
(33.2)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Other
|
|
|
-
|
|
|
|
-
|
|
|
|
(5.2)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Accretion and
fair-value adjustments to contingent consideration
|
|
|
-
|
|
|
|
(3.4)
|
|
|
|
(1.9)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Non-cash amortization
of debt premium recognized in purchase accounting
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4.8)
|
|
|
|
-
|
|
|
|
-
|
|
Impairment of RORgt
IPR&D product
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(522.0)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Asset sales and
impairments, other
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.5
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Loss on Teva
shares
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
77.7
|
|
|
|
-
|
|
Litigation settlement
related charges
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(10.3)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Other
adjustments
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1.3
|
|
|
|
(1,697.6)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Income taxes on
pre-tax adjustments
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
437.8
|
|
Discrete income tax
events
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
459.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjusted
|
|
$
|
3,672.1
|
|
|
$
|
505.2
|
|
|
$
|
355.8
|
|
|
$
|
784.5
|
|
|
$
|
264.2
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(238.1)
|
|
|
$
|
(1.1)
|
|
|
$
|
215.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The non-GAAP income
tax expense is determined based on our pre-tax income, adjusted for
non-GAAP items on a jurisdiction by jurisdiction basis. The
non-GAAP effective tax rate in the three months ended March 31,
2019 was impacted by U.S. income taxed at rates higher than the
Irish statutory rate, partially offset by income earned in
jurisdictions with tax rates lower than the Irish statutory
rate.
The non-GAAP
effective tax rate for the three months ended March 31, 2019
excludes a net discrete tax benefit of approximately $68.4 million
related to the recognition of an outside basis difference offset by
share-based compensation and other individually insignificant
items.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table
presents a reconciliation of Allergan plc's reported net (loss) /
income from continuing operations
attributable to shareholders and diluted earnings per share to
non-GAAP performance net income and non-GAAP
performance net income per share for the three months ended March
31, 2019 and 2018:
|
Table
6
|
ALLERGAN
PLC
|
RECONCILIATION
TABLE
|
(Unaudited; in
millions except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March
31,
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP to Non-GAAP
Performance net income calculation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP (loss) / income
from continuing operations attributable to shareholders
|
$
|
(2,408.0)
|
|
|
$
|
(286.1)
|
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
Amortization
|
|
1,399.4
|
|
|
|
1,697.6
|
|
|
Acquisition,
divestiture and licensing (income) / charges
|
|
36.5
|
|
|
|
210.2
|
|
|
Accretion and
fair-value adjustments to contingent consideration
|
|
18.7
|
|
|
|
5.3
|
|
|
Goodwill and other
impairments and asset sales, net and related costs
|
|
2,461.8
|
|
|
|
535.1
|
|
|
Other
|
|
-
|
|
|
|
-
|
|
|
Non-acquisition
restructurings, including Global Supply Chain
initiatives
|
|
2.9
|
|
|
|
30.8
|
|
|
Legal
settlements
|
|
10.4
|
|
|
|
10.3
|
|
|
Income taxes on items
above and other discrete income tax adjustments
|
|
(255.0)
|
|
|
|
(897.4)
|
|
|
Non-GAAP performance
net income attributable to shareholders
|
$
|
1,266.7
|
|
|
$
|
1,305.8
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) /
income per share from continuing operations attributable to
shareholders- GAAP
|
$
|
(7.25)
|
|
|
$
|
(0.86)
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP performance
net income per share attributable to shareholders
|
$
|
3.79
|
|
|
$
|
3.74
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average
ordinary shares outstanding
|
|
332.0
|
|
|
|
334.6
|
|
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
Dilutive
shares
|
|
2.4
|
|
|
|
14.1
|
|
|
Diluted weighted
average ordinary shares outstanding
|
|
334.4
|
|
|
|
348.7
|
|
|
|
|
We define adjusted
EBITDA as an amount equal to consolidated net income / (loss) from
continuing operations attributable to shareholders for such period
adjusted for the following: (i) interest expense, (ii) interest
income, (iii) (benefit) for income taxes, (iv) depreciation and
amortization expenses, (v) share-based compensation expense, (vi)
asset impairment charges and losses / (gains) and expenses
associated with the sale of assets, including the exclusion of
discontinued operations, (vii) business restructuring charges
associated with Allergan's global supply chain and operational
excellence initiatives or other restructurings of a similar nature,
(viii) costs and charges associated with the acquisition and
divestitures of businesses and assets including, but not limited
to, milestone payments, integration charges, other charges
associated with the revaluation of assets or liabilities and
charges associated with the revaluation of acquisition related
contingent liabilities that are based in whole or in part on future
estimated cash flows, (ix) litigation charges and settlements and
(x) other unusual charges or expenses. We define non-GAAP operating
income as adjusted EBITDA including depreciation and certain
share-based compensation charges and excluding dividend income,
fair value accounting results included within other income
(expense), net and other-than-temporary investment impairments
included within other income (expense), net.
The following table
presents a reconciliation of Allergan plc's reported net (loss)
from continuing operations attributable to shareholders for the
three months ended March 31, 2019 and 2018 to adjusted EBITDA and
Non-GAAP Operating Income:
|
Table
7
|
ALLERGAN
PLC
|
ADJUSTED EBITDA
and NON-GAAP OPERATING INCOME, RECONCILIATION TABLE
|
(Unaudited; in
millions)
|
|
|
Three Months Ended
|
|
|
|
March
31,
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP (loss) / income
from continuing operations attributable to shareholders
|
$
|
(2,408.0)
|
|
|
$
|
(286.1)
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
201.8
|
|
|
|
250.6
|
|
|
Interest
income
|
|
(21.3)
|
|
|
|
(17.3)
|
|
|
(Benefit) for income
taxes
|
|
(68.6)
|
|
|
|
(682.2)
|
|
|
Depreciation
|
|
47.5
|
|
|
|
56.1
|
|
|
Amortization
|
|
1,399.4
|
|
|
|
1,697.6
|
|
|
EBITDA
|
$
|
(849.2)
|
|
|
$
|
1,018.7
|
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
Acquisition,
divestiture and licensing charges
|
|
40.1
|
|
|
|
197.0
|
|
|
Goodwill and other
impairments and asset sales, net and related costs
|
|
2,461.8
|
|
|
|
535.1
|
|
|
Other
|
|
-
|
|
|
|
-
|
|
|
Non-acquisition
restructurings, including Global Supply Chain initiatives,
excluding
depreciation
|
|
2.9
|
|
|
|
30.8
|
|
|
Legal
settlements
|
|
10.4
|
|
|
|
10.3
|
|
|
Accretion and
fair-value adjustments to contingent consideration
|
|
18.7
|
|
|
|
5.3
|
|
|
Share-based
compensation including cash settlements
|
|
52.3
|
|
|
|
72.5
|
|
|
Adjusted
EBITDA
|
$
|
1,737.0
|
|
|
$
|
1,869.7
|
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
(47.5)
|
|
|
|
(56.1)
|
|
|
Other income (expense)
related to fair value accounting
|
|
(13.5)
|
|
|
|
-
|
|
|
Share-based
compensation not related to restructuring charges and purchase
accounting impact on stock-based compensation for acquired
awards
|
|
(50.4)
|
|
|
|
(54.5)
|
|
|
Non-GAAP Operating
Income
|
$
|
1,625.6
|
|
|
$
|
1,759.1
|
|
|
The following table
details Allergan plc's segment contribution reconciled to the
non-GAAP contribution for the same financial statement line items
for the three months ended March 31, 2019 and 2018. Included within
our corporate function are shared costs, including above site and
unallocated costs associated with running our global manufacturing
facilities, corporate general and administrative expenses and
corporate initiatives.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
8
|
|
ALLERGAN
PLC
|
|
Segment
Contribution to Non-GAAP Allergan plc Contribution
|
|
(Unaudited; $ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2019
|
|
|
Three Months Ended
March 31, 2018
|
|
|
US Specialized
Therapeutics
Segment
|
|
|
US General
Medicine Segment
|
|
|
International
Segment
|
|
|
Corporate
|
|
|
Total
|
|
|
US Specialized
Therapeutics
Segment
|
|
|
US General
Medicine Segment
|
|
|
International
Segment
|
|
|
Corporate
|
|
|
Total
|
|
Net
revenues
|
$
|
1,542.9
|
|
|
$
|
1,249.9
|
|
|
$
|
801.5
|
|
|
$
|
2.8
|
|
|
$
|
3,597.1
|
|
|
$
|
1,578.6
|
|
|
$
|
1,223.7
|
|
|
$
|
864.0
|
|
|
$
|
5.8
|
|
|
$
|
3,672.1
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales(1)
|
|
120.1
|
|
|
|
190.5
|
|
|
|
109.7
|
|
|
|
56.4
|
|
|
|
476.7
|
|
|
|
134.2
|
|
|
|
182.6
|
|
|
|
120.9
|
|
|
|
67.5
|
|
|
|
505.2
|
|
Selling and
marketing
|
|
356.8
|
|
|
|
210.5
|
|
|
|
237.6
|
|
|
|
-
|
|
|
|
804.9
|
|
|
|
313.2
|
|
|
|
225.5
|
|
|
|
245.7
|
|
|
|
0.1
|
|
|
|
784.5
|
|
General and
administrative
|
|
54.6
|
|
|
|
43.8
|
|
|
|
25.7
|
|
|
|
167.2
|
|
|
|
291.3
|
|
|
|
50.2
|
|
|
|
38.9
|
|
|
|
31.4
|
|
|
|
143.7
|
|
|
|
264.2
|
|
Segment
contribution
|
$
|
1,011.4
|
|
|
$
|
805.1
|
|
|
$
|
428.5
|
|
|
$
|
(220.8)
|
|
|
$
|
2,024.2
|
|
|
$
|
1,081.0
|
|
|
$
|
776.7
|
|
|
$
|
466.0
|
|
|
$
|
(205.5)
|
|
|
$
|
2,118.2
|
|
Segment
margin
|
|
65.6
|
%
|
|
|
64.4
|
%
|
|
|
53.5
|
%
|
|
n.m.
|
|
|
|
56.3
|
%
|
|
|
68.5
|
%
|
|
|
63.5
|
%
|
|
|
53.9
|
%
|
|
n.m.
|
|
|
|
57.7
|
%
|
Segment gross
margin(2)
|
|
92.2
|
%
|
|
|
84.8
|
%
|
|
|
86.3
|
%
|
|
n.m.
|
|
|
|
86.7
|
%
|
|
|
91.5
|
%
|
|
|
85.1
|
%
|
|
|
86.0
|
%
|
|
n.m.
|
|
|
|
86.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes
amortization and impairment of acquired intangibles including
product rights.
|
|
(2) Defined as
net revenues less segment related cost of sales as a percentage of
net revenues.
|
|
The following table
details Allergan plc's product revenue for significant promoted
products within the US Specialized
Therapeutics segment for the three months ended March 31, 2019 and
2018.
|
|
Table
9
|
|
ALLERGAN
PLC
|
|
US Specialized
Therapeutics Product Revenue
|
|
(Unaudited; in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
Change
|
|
|
|
2019
|
|
|
2018
|
|
|
Dollars
|
|
|
%
|
|
Total Eye
Care
|
|
$
|
465.1
|
|
|
$
|
491.1
|
|
|
$
|
(26.0)
|
|
|
|
(5.3)
|
%
|
Restasis®
|
|
|
231.7
|
|
|
|
255.8
|
|
|
|
(24.1)
|
|
|
|
(9.4)
|
%
|
Alphagan®/Combigan®
|
|
|
83.0
|
|
|
|
84.2
|
|
|
|
(1.2)
|
|
|
|
(1.4)
|
%
|
Lumigan®/Ganfort®
|
|
|
57.7
|
|
|
|
66.8
|
|
|
|
(9.1)
|
|
|
|
(13.6)
|
%
|
Ozurdex®
|
|
|
30.3
|
|
|
|
25.5
|
|
|
|
4.8
|
|
|
|
18.8
|
%
|
Eye Drops
|
|
|
49.4
|
|
|
|
46.2
|
|
|
|
3.2
|
|
|
|
6.9
|
%
|
Other Eye
Care
|
|
|
13.0
|
|
|
|
12.6
|
|
|
|
0.4
|
|
|
|
3.2
|
%
|
Total Medical
Aesthetics
|
|
|
648.2
|
|
|
|
635.6
|
|
|
|
12.6
|
|
|
|
2.0
|
%
|
Facial
Aesthetics
|
|
|
366.5
|
|
|
|
327.7
|
|
|
|
38.8
|
|
|
|
11.8
|
%
|
Botox® Cosmetics
|
|
|
229.5
|
|
|
|
196.7
|
|
|
|
32.8
|
|
|
|
16.7
|
%
|
Juvederm® Collection
|
|
|
129.7
|
|
|
|
122.8
|
|
|
|
6.9
|
|
|
|
5.6
|
%
|
Kybella®
|
|
|
7.3
|
|
|
|
8.2
|
|
|
|
(0.9)
|
|
|
|
(11.0)
|
%
|
Plastic
Surgery
|
|
|
61.2
|
|
|
|
60.7
|
|
|
|
0.5
|
|
|
|
0.8
|
%
|
Breast
Implants
|
|
|
61.2
|
|
|
|
60.7
|
|
|
|
0.5
|
|
|
|
0.8
|
%
|
Regenerative
Medicine
|
|
|
122.9
|
|
|
|
128.2
|
|
|
|
(5.3)
|
|
|
|
(4.1)
|
%
|
Alloderm®
|
|
|
95.0
|
|
|
|
99.5
|
|
|
|
(4.5)
|
|
|
|
(4.5)
|
%
|
Other Regenerative
Medicine
|
|
|
27.9
|
|
|
|
28.7
|
|
|
|
(0.8)
|
|
|
|
(2.8)
|
%
|
Body
Contouring
|
|
|
62.9
|
|
|
|
87.1
|
|
|
|
(24.2)
|
|
|
|
(27.8)
|
%
|
Coolsculpting® Systems & Add On
Applicators
|
|
|
15.1
|
|
|
|
33.7
|
|
|
|
(18.6)
|
|
|
|
(55.2)
|
%
|
Coolsculpting® Consumables
|
|
|
47.8
|
|
|
|
53.4
|
|
|
|
(5.6)
|
|
|
|
(10.5)
|
%
|
Skin
Care(3)
|
|
|
34.7
|
|
|
|
31.9
|
|
|
|
2.8
|
|
|
|
8.8
|
%
|
Total Medical
Dermatology
|
|
|
6.1
|
|
|
|
36.7
|
|
|
|
(30.6)
|
|
|
|
(83.4)
|
%
|
Aczone®
|
|
|
1.6
|
|
|
|
16.0
|
|
|
|
(14.4)
|
|
|
|
(90.0)
|
%
|
Other Medical
Dermatology(4)
|
|
|
4.5
|
|
|
|
20.7
|
|
|
|
(16.2)
|
|
|
|
(78.3)
|
%
|
Total Neuroscience
& Urology
|
|
|
409.4
|
|
|
|
398.6
|
|
|
|
10.8
|
|
|
|
2.7
|
%
|
Botox® Therapeutics(5)
|
|
|
397.6
|
|
|
|
375.8
|
|
|
|
21.8
|
|
|
|
5.8
|
%
|
Rapaflo®
|
|
|
11.8
|
|
|
|
22.8
|
|
|
|
(11.0)
|
|
|
|
(48.2)
|
%
|
Other
Revenues
|
|
|
14.1
|
|
|
|
16.6
|
|
|
|
(2.5)
|
|
|
|
(15.1)
|
%
|
Net
Revenues
|
|
$
|
1,542.9
|
|
|
$
|
1,578.6
|
|
|
$
|
(35.7)
|
|
|
|
(2.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales(1)
|
|
|
120.1
|
|
|
|
134.2
|
|
|
|
(14.1)
|
|
|
|
(10.5)
|
%
|
Selling and
marketing
|
|
|
356.8
|
|
|
|
313.2
|
|
|
|
43.6
|
|
|
|
13.9
|
%
|
General and
administrative
|
|
|
54.6
|
|
|
|
50.2
|
|
|
|
4.4
|
|
|
|
8.8
|
%
|
Segment
contribution
|
|
$
|
1,011.4
|
|
|
$
|
1,081.0
|
|
|
$
|
(69.6)
|
|
|
|
(6.4)
|
%
|
Segment
margin
|
|
|
65.6
|
%
|
|
|
68.5
|
%
|
|
|
|
|
|
|
(2.9)
|
%
|
Segment gross
margin(2)
|
|
|
92.2
|
%
|
|
|
91.5
|
%
|
|
|
|
|
|
|
0.7
|
%
|
(1) Excludes amortization and impairment of
acquired intangibles including product rights, as well as indirect
cost of sales not attributable to segment results.
|
|
(2) Defined as
net revenues less segment related cost of sales as a percentage of
net revenues.
|
|
(3) Includes
SkinMedica® and
Latisse®.
|
|
(4) Includes
Tazorac® sales of $9.4 million which
were previously disclosed separately in the three months ended
March 31, 2018.
|
|
(5) Includes
Botox® Hyperhidrosis of $17.3 million
which was previously disclosed under Medical Dermatology in the
three months ended March 31, 2018.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table
details Allergan plc's product revenue for significant promoted
products within the US General Medicine
segment for the three months ended March 31, 2019 and
2018.
|
|
Table
10
|
|
ALLERGAN
PLC
|
|
US General
Medicine Product Revenue
|
|
(Unaudited; in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
Change
|
|
|
|
2019
|
|
|
2018
|
|
|
Dollars
|
|
|
%
|
|
Total Central
Nervous System (CNS)
|
|
$
|
293.5
|
|
|
$
|
262.8
|
|
|
$
|
30.7
|
|
|
|
11.7
|
%
|
Vraylar®
|
|
|
143.7
|
|
|
|
84.4
|
|
|
|
59.3
|
|
|
|
70.3
|
%
|
Viibryd®/Fetzima®
|
|
|
85.0
|
|
|
|
71.7
|
|
|
|
13.3
|
|
|
|
18.5
|
%
|
Saphris®
|
|
|
31.9
|
|
|
|
32.7
|
|
|
|
(0.8)
|
|
|
|
(2.4)
|
%
|
Namzaric®
|
|
|
23.4
|
|
|
|
33.4
|
|
|
|
(10.0)
|
|
|
|
(29.9)
|
%
|
Namenda
®(3)
|
|
|
9.5
|
|
|
|
40.6
|
|
|
|
(31.1)
|
|
|
|
(76.6)
|
%
|
Total
Gastrointestinal (GI)
|
|
|
358.2
|
|
|
|
388.7
|
|
|
|
(30.5)
|
|
|
|
(7.8)
|
%
|
Linzess®
|
|
|
161.3
|
|
|
|
159.3
|
|
|
|
2.0
|
|
|
|
1.3
|
%
|
Zenpep®
|
|
|
63.0
|
|
|
|
52.9
|
|
|
|
10.1
|
|
|
|
19.1
|
%
|
Carafate®/Sulcrate®
|
|
|
54.3
|
|
|
|
56.0
|
|
|
|
(1.7)
|
|
|
|
(3.0)
|
%
|
Viberzi®
|
|
|
37.2
|
|
|
|
35.9
|
|
|
|
1.3
|
|
|
|
3.6
|
%
|
Asacol®/Delzicol®
|
|
|
24.7
|
|
|
|
38.2
|
|
|
|
(13.5)
|
|
|
|
(35.3)
|
%
|
Canasa®/Salofalk®
|
|
|
10.2
|
|
|
|
38.6
|
|
|
|
(28.4)
|
|
|
|
(73.6)
|
%
|
Other GI
|
|
|
7.5
|
|
|
|
7.8
|
|
|
|
(0.3)
|
|
|
|
(3.8)
|
%
|
Total Women's
Health
|
|
|
201.0
|
|
|
|
163.3
|
|
|
|
37.7
|
|
|
|
23.1
|
%
|
Lo
Loestrin®
|
|
|
125.8
|
|
|
|
114.6
|
|
|
|
11.2
|
|
|
|
9.8
|
%
|
Liletta®
|
|
|
14.8
|
|
|
|
8.1
|
|
|
|
6.7
|
|
|
|
82.7
|
%
|
Other Women's
Health(4)(5)
|
|
|
60.4
|
|
|
|
40.6
|
|
|
|
19.8
|
|
|
|
48.8
|
%
|
Total
Anti-Infectives
|
|
|
81.6
|
|
|
|
71.6
|
|
|
|
10.0
|
|
|
|
14.0
|
%
|
Teflaro®
|
|
|
33.5
|
|
|
|
32.2
|
|
|
|
1.3
|
|
|
|
4.0
|
%
|
Avycaz®
|
|
|
29.7
|
|
|
|
21.8
|
|
|
|
7.9
|
|
|
|
36.2
|
%
|
Dalvance®
|
|
|
12.0
|
|
|
|
11.9
|
|
|
|
0.1
|
|
|
|
0.8
|
%
|
Other
Anti-Infectives
|
|
|
6.4
|
|
|
|
5.7
|
|
|
|
0.7
|
|
|
|
12.3
|
%
|
Diversified
Brands
|
|
|
270.9
|
|
|
|
274.9
|
|
|
|
(4.0)
|
|
|
|
(1.5)
|
%
|
Bystolic® /Byvalson®
|
|
|
128.3
|
|
|
|
132.8
|
|
|
|
(4.5)
|
|
|
|
(3.4)
|
%
|
Armour
Thyroid
|
|
|
50.0
|
|
|
|
48.2
|
|
|
|
1.8
|
|
|
|
3.7
|
%
|
Savella®
|
|
|
20.7
|
|
|
|
19.9
|
|
|
|
0.8
|
|
|
|
4.0
|
%
|
Other Diversified
Brands(6)(7)
|
|
|
71.9
|
|
|
|
74.0
|
|
|
|
(2.1)
|
|
|
|
(2.8)
|
%
|
Other
Revenues
|
|
|
44.7
|
|
|
|
62.4
|
|
|
|
(17.7)
|
|
|
|
(28.4)
|
%
|
Net
revenues
|
|
$
|
1,249.9
|
|
|
$
|
1,223.7
|
|
|
$
|
26.2
|
|
|
|
2.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales(1)
|
|
|
190.5
|
|
|
|
182.6
|
|
|
|
7.9
|
|
|
|
4.3
|
%
|
Selling and
marketing
|
|
|
210.5
|
|
|
|
225.5
|
|
|
|
(15.0)
|
|
|
|
(6.7)
|
%
|
General and
administrative
|
|
|
43.8
|
|
|
|
38.9
|
|
|
|
4.9
|
|
|
|
12.6
|
%
|
Segment
contribution
|
|
$
|
805.1
|
|
|
$
|
776.7
|
|
|
$
|
28.4
|
|
|
|
3.7
|
%
|
Segment
margin
|
|
|
64.4
|
%
|
|
|
63.5
|
%
|
|
|
|
|
|
|
0.9
|
%
|
Segment gross
margin(2)
|
|
|
84.8
|
%
|
|
|
85.1
|
%
|
|
|
|
|
|
|
(0.3)
|
%
|
(1) Excludes
amortization and impairment of acquired intangibles including
product rights, as well as indirect cost of sales not attributable
to segment results.
|
|
(2) Defined as
net revenues less segment related cost of sales as a percentage of
net revenues.
|
|
(3) Includes
Namenda XR® and
Namenda® IR.
|
|
(4) Includes
Estrace® Cream sales of $6.4 million
which were previously disclosed separately in the three months
ended March 31, 2018.
|
|
(5) Includes
Minastrin® 24 sales of $5.2 million
which were previously disclosed separately in the three months
ended March 31, 2018.
|
|
(6) Includes
Lexapro® sales of $14.7 million which
were previously disclosed separately in the three months ended
March 31, 2018.
|
|
(7) Includes
PacPharma sales of $4.4 million which were previously disclosed
separately in the three months ended March 31,
2018.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table
details Allergan plc's product revenue for significant promoted
products within the International segment
for the three months ended March 31, 2019 and 2018.
|
|
Table
11
|
|
ALLERGAN
PLC
|
|
International
Product Revenue
|
|
(Unaudited; in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
Change
|
|
|
|
2019
|
|
|
2018
|
|
|
Dollars
|
|
|
%
|
|
Total Eye
Care
|
|
$
|
291.8
|
|
|
$
|
343.7
|
|
|
$
|
(51.9)
|
|
|
|
(15.1)
|
%
|
Lumigan®/Ganfort®
|
|
|
85.1
|
|
|
|
100.4
|
|
|
|
(15.3)
|
|
|
|
(15.2)
|
%
|
Alphagan®/Combigan®
|
|
|
37.6
|
|
|
|
44.2
|
|
|
|
(6.6)
|
|
|
|
(14.9)
|
%
|
Ozurdex®
|
|
|
63.1
|
|
|
|
64.4
|
|
|
|
(1.3)
|
|
|
|
(2.0)
|
%
|
Eye
Drops(3)
|
|
|
55.4
|
|
|
|
68.8
|
|
|
|
(13.4)
|
|
|
|
(19.5)
|
%
|
Restasis®
|
|
|
10.4
|
|
|
|
18.3
|
|
|
|
(7.9)
|
|
|
|
(43.2)
|
%
|
Other Eye
Care
|
|
|
40.2
|
|
|
|
47.6
|
|
|
|
(7.4)
|
|
|
|
(15.5)
|
%
|
Total Medical
Aesthetics
|
|
|
352.8
|
|
|
|
358.5
|
|
|
|
(5.7)
|
|
|
|
(1.6)
|
%
|
Facial
Aesthetics
|
|
|
306.8
|
|
|
|
296.1
|
|
|
|
10.7
|
|
|
|
3.6
|
%
|
Botox® Cosmetics
|
|
|
147.4
|
|
|
|
148.6
|
|
|
|
(1.2)
|
|
|
|
(0.8)
|
%
|
Juvederm® Collection
|
|
|
157.8
|
|
|
|
146.1
|
|
|
|
11.7
|
|
|
|
8.0
|
%
|
Belkyra® (Kybella®)
|
|
|
1.6
|
|
|
|
1.4
|
|
|
|
0.2
|
|
|
|
14.3
|
%
|
Plastic
Surgery
|
|
|
11.6
|
|
|
|
44.5
|
|
|
|
(32.9)
|
|
|
|
(73.9)
|
%
|
Breast
Implants
|
|
|
11.2
|
|
|
|
44.1
|
|
|
|
(32.9)
|
|
|
|
(74.6)
|
%
|
Other Plastic
Surgery
|
|
|
0.4
|
|
|
|
0.4
|
|
|
|
-
|
|
|
|
0.0
|
%
|
Regenerative
Medicine
|
|
|
3.3
|
|
|
|
4.9
|
|
|
|
(1.6)
|
|
|
|
(32.7)
|
%
|
Alloderm®
|
|
|
1.6
|
|
|
|
2.2
|
|
|
|
(0.6)
|
|
|
|
(27.3)
|
%
|
Other Regenerative
Medicine
|
|
|
1.7
|
|
|
|
2.7
|
|
|
|
(1.0)
|
|
|
|
(37.0)
|
%
|
Body
Contouring
|
|
|
28.4
|
|
|
|
9.2
|
|
|
|
19.2
|
|
|
n.m.
|
|
Coolsculpting® Systems & Add On
Applicators
|
|
|
10.6
|
|
|
|
1.1
|
|
|
|
9.5
|
|
|
n.m.
|
|
Coolsculpting® Consumables
|
|
|
17.8
|
|
|
|
8.1
|
|
|
|
9.7
|
|
|
n.m.
|
|
Skin
Care
|
|
|
2.7
|
|
|
|
3.8
|
|
|
|
(1.1)
|
|
|
|
(28.9)
|
%
|
Botox® Therapeutics and
Other
|
|
|
138.8
|
|
|
|
149.7
|
|
|
|
(10.9)
|
|
|
|
(7.3)
|
%
|
Botox® Therapeutics
|
|
|
93.9
|
|
|
|
96.2
|
|
|
|
(2.3)
|
|
|
|
(2.4)
|
%
|
Asacol®/Delzicol®
|
|
|
10.3
|
|
|
|
11.7
|
|
|
|
(1.4)
|
|
|
|
(12.0)
|
%
|
Constella®
|
|
|
5.5
|
|
|
|
5.6
|
|
|
|
(0.1)
|
|
|
|
(1.8)
|
%
|
Other
Products
|
|
|
29.1
|
|
|
|
36.2
|
|
|
|
(7.1)
|
|
|
|
(19.6)
|
%
|
Other
Revenues
|
|
|
18.1
|
|
|
|
12.1
|
|
|
|
6.0
|
|
|
|
49.6
|
%
|
Net
revenues
|
|
$
|
801.5
|
|
|
$
|
864.0
|
|
|
$
|
(62.5)
|
|
|
|
(7.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales(1)
|
|
|
109.7
|
|
|
|
120.9
|
|
|
|
(11.2)
|
|
|
|
(9.3)
|
%
|
Selling and
marketing
|
|
|
237.6
|
|
|
|
245.7
|
|
|
|
(8.1)
|
|
|
|
(3.3)
|
%
|
General and
administrative
|
|
|
25.7
|
|
|
|
31.4
|
|
|
|
(5.7)
|
|
|
|
(18.2)
|
%
|
Segment
contribution
|
|
$
|
428.5
|
|
|
$
|
466.0
|
|
|
$
|
(37.5)
|
|
|
|
(8.0)
|
%
|
Segment
margin
|
|
|
53.5
|
%
|
|
|
53.9
|
%
|
|
|
|
|
|
|
(0.4)
|
%
|
Segment gross
margin(2)
|
|
|
86.3
|
%
|
|
|
86.0
|
%
|
|
|
|
|
|
|
0.3
|
%
|
(1) Excludes amortization and impairment of
acquired intangibles including product rights, as well as indirect
cost of sales not attributable to segment results.
|
|
(2) Defined as
net revenues less segment related cost of sales as a percentage of
net revenues.
|
|
(3) Includes
Optive® sales of $27.8 million which
were previously disclosed separately in the three months ended
March 31, 2018.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table
provides a reconciliation of anticipated GAAP loss / income from
continuing operations to non-GAAP
performance net income attributable to shareholders for the three
months ending June 30, 2019 and twelve months ending
December 31, 2019:
|
|
|
|
|
|
|
|
Table
12
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ending
June 30, 2019
|
|
Twelve months
ending
December 31, 2019
|
(in millions,
except per share information)
|
|
LOW
|
|
HIGH
|
|
LOW
|
GAAP income/(loss)
from continuing operations
attributable to shareholders
|
|
$
|
165.0
|
|
$
|
233.0
|
|
$
|
(1,876.0)
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
|
Amortization
|
|
|
1,400.0
|
|
|
1,400.0
|
|
|
5,600.0
|
Acquisition,
divestiture, licensing and other non-
recurring charges
|
|
|
5.0
|
|
|
5.0
|
|
|
100.0
|
Accretion and
fair-value adjustments to contingent
consideration
|
|
|
5.0
|
|
|
5.0
|
|
|
30.0
|
Impairment/asset sales
and related costs
|
|
|
-
|
|
|
-
|
|
|
2,462.0
|
Non-acquisition
restructurings, including Global
Supply Chain initiatives
|
|
|
-
|
|
|
-
|
|
|
4.0
|
Legal
settlements
|
|
|
-
|
|
|
-
|
|
|
10.0
|
Income taxes on items
above and other discrete
income tax adjustments
|
|
|
(185.0)
|
|
|
(185.0)
|
|
|
(835.0)
|
Non-GAAP performance
net income attributable to
shareholders
|
|
|
1,390.0
|
|
|
1,458.0
|
|
|
5,495.0
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) /
income per share from continuing
operations attributable to shareholders- GAAP
|
|
$
|
0.50
|
|
$
|
0.70
|
|
$
|
(5.70)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP performance
diluted net income per share
attributable to shareholders
|
|
$
|
4.20
|
|
$
|
4.40
|
|
$
|
16.55
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average
ordinary shares outstanding
|
|
|
328.0
|
|
|
328.0
|
|
|
329.0
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
|
Dilutive
shares
|
|
|
3.0
|
|
|
3.0
|
|
|
3.0
|
Diluted weighted
average ordinary shares outstanding
|
|
|
331.0
|
|
|
331.0
|
|
|
332.0
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/allergan-reports-first-quarter-2019-financial-results-300844820.html
SOURCE Allergan plc