DUBLIN,
FOURTH QUARTER AND FULL-YEAR 2018 FINANCIAL RESULTS |
|||||||||||||||||||||||||
(unaudited; $ in millions, except per share amounts) |
Q4 '18 |
Q4 '17 |
Q4 '18 v Q4 '17 |
Year Ended December 31, 2018 |
Year Ended December 31, 2017 |
2018 v 2017 |
|||||||||||||||||||
Total Net Revenues |
$ |
4,079.7 |
$ |
4,326.1 |
(5.7) |
% |
$ |
15,787.4 |
$ |
15,940.7 |
(1.0) |
% |
|||||||||||||
Operating (Loss) |
$ |
(5,384.1) |
$ |
(90.5) |
n.m. |
$ |
(6,247.6) |
$ |
(5,921.2) |
(5.5) |
% |
||||||||||||||
Diluted EPS - Continuing Operations |
$ |
(12.83) |
$ |
9.97 |
n.m. |
$ |
(15.26) |
$ |
(11.99) |
(27.3) |
% |
||||||||||||||
SG&A Expense |
$ |
1,193.6 |
$ |
1,266.8 |
(5.8) |
% |
$ |
4,521.8 |
$ |
5,016.7 |
(9.9) |
% |
|||||||||||||
R&D Expense |
$ |
678.1 |
$ |
408.2 |
66.1 |
% |
$ |
2,266.2 |
$ |
2,100.1 |
7.9 |
% |
|||||||||||||
Continuing Operations Tax Rate |
23.2 |
% |
956.1 |
% |
n.m. |
25.8 |
% |
64.2 |
% |
38.4 |
% |
||||||||||||||
Non-GAAP Net Revenues |
$ |
4,079.7 |
$ |
4,326.1 |
(5.7) |
% |
$ |
15,762.4 |
$ |
15,940.7 |
(1.1) |
% |
|||||||||||||
Non-GAAP Operating Income |
$ |
1,917.8 |
$ |
2,174.3 |
(11.8) |
% |
$ |
7,555.8 |
$ |
7,647.5 |
(1.2) |
% |
|||||||||||||
Non-GAAP Performance Net Income Per Share |
$ |
4.29 |
$ |
4.86 |
(11.7) |
% |
$ |
16.69 |
$ |
16.35 |
2.1 |
% |
|||||||||||||
Non-GAAP Adjusted EBITDA |
$ |
1,990.5 |
$ |
2,284.5 |
(12.9) |
% |
$ |
7,954.1 |
$ |
8,097.6 |
(1.8) |
% |
|||||||||||||
Non-GAAP SG&A Expense |
$ |
1,140.4 |
$ |
1,132.8 |
0.7 |
% |
$ |
4,354.9 |
$ |
4,554.8 |
(4.4) |
% |
|||||||||||||
Non-GAAP R&D Expense |
$ |
436.1 |
$ |
405.7 |
7.5 |
% |
$ |
1,574.5 |
$ |
1,598.8 |
(1.5) |
% |
|||||||||||||
Non-GAAP Continuing Operations Tax Rate |
14.3 |
% |
11.4 |
% |
2.9 |
% |
14.2 |
% |
12.6 |
% |
1.6 |
% |
|||||||||||||
Executive Commentary
"
"Taken together, these accomplishments and our talented colleagues give me confidence in our ability to continue producing solid results in 2019 and beyond, while also delivering innovation that will have an enduring impact on patients, customers and shareholders."
Full-Year 2018 Performance
GAAP operating loss in 2018 was
Fourth Quarter 2018 Performance
GAAP operating loss in the fourth quarter 2018 was
Operating Expenses
Total GAAP Selling, General and Administrative (SG&A) Expense was
Amortization, Tax and Capitalization
Amortization expense for the fourth quarter 2018 was
Impairments
In the fourth quarter of 2018,
FOURTH QUARTER 2018 BUSINESS SEGMENT RESULTS
U.S. Specialized Therapeutics
U.S. Specialized Therapeutics net revenues were
Medical Aesthetics
Neurosciences & Urology
Eye Care
U.S. General Medicine
U.S. General Medicine net revenues in the fourth quarter of 2018 were
Central Nervous System
Gastrointestinal,
International
International net revenues in the fourth quarter of 2018 were
Facial Aesthetics
Eye Care
Botox® Therapeutic
NEW SHARE REPURCHASE PROGRAM
These actions reflect the Company's conviction in its strategy and strong future cash flow position, allowing for periodic return of cash to shareholders through dividends and share buybacks while maintaining investment grade ratings and continuing its strategy to pay down debt.
PIPELINE UPDATE
Allergan R&D continues to advance its pipeline. Key 2018 late stage clinical achievements and anticipated milestones include:
FIRST QUARTER AND FULL YEAR 2019 GUIDANCE |
||
Twelve Months Ending December 31, 2019 |
||
GAAP |
NON-GAAP |
|
Total Net Revenues |
$15.000 - $15.300 billion |
$15.000 - $15.300 billion |
Gross Margin (as a % of revenues) |
85.0% - 85.5% |
85.0% - 85.5% |
SG&A Expense |
$4.1 - $4.3 billion |
$4.1 - $4.3 billion |
R&D Expense |
$1.8 - $1.9 billion |
$1.6 - $1.7 billion |
Net Interest Expense/Other Income (Expense) |
~ $775.0 million |
~ $800.0 million |
Tax Rate |
24.5% - 25.0% |
13.0% - 13.5% |
Net Income Per Share1 |
?$1.14 |
?$16.36 |
Average 2018 Share Count2 |
~ 332.0 million |
~ 332.0 million |
Cash Flow from Operations |
~ $5.0 - $5.5 billion |
N/A |
Three Months Ending March 31, 2019 |
||
GAAP |
NON-GAAP |
|
Total Net Revenues |
$3.400 - $3.550 billion |
$3.400 - $3.550 billion |
Net Income / (Loss) Per Share1,2 |
$(0.39) - $(0.20) |
$3.40 - $3.60 |
(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. |
FOURTH QUARTER AND FULL-YEAR 2018 CONFERENCE CALL AND WEBCAST DETAILS
To access the webcast, please visit
Allergan Contacts: |
|
Investors: |
|
Manisha Narasimhan, PhD |
(862) 261-7162 |
Christine Chiou |
(862) 261-7396 |
Media: |
|
Amy Rose |
(862) 289-3072 |
About
With commercial operations in approximately 100 countries,
For more information, visit
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
The following presents Allergan plc's statement of operations for the three and twelve months ended December 31, 2018 and 2017: |
|||||||||||||||||
Table 1 |
|||||||||||||||||
ALLERGAN PLC |
|||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||||
(Unaudited; in millions, except per share amounts) |
|||||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||||
December 31 |
December 31 |
||||||||||||||||
2018 |
2017 |
2018 |
2017 |
||||||||||||||
Net revenues |
$ |
4,079.7 |
$ |
4,326.1 |
$ |
15,787.4 |
$ |
15,940.7 |
|||||||||
Operating expenses: |
|||||||||||||||||
Cost of sales (excludes amortization and impairment of |
590.0 |
580.9 |
2,191.4 |
2,168.0 |
|||||||||||||
Research and development |
678.1 |
408.2 |
2,266.2 |
2,100.1 |
|||||||||||||
Selling, general and administrative |
1,193.6 |
1,266.8 |
4,521.8 |
5,016.7 |
|||||||||||||
Amortization |
1,569.1 |
1,922.2 |
6,552.3 |
7,197.1 |
|||||||||||||
In-process research and development impairments |
6.6 |
207.0 |
804.6 |
1,452.3 |
|||||||||||||
Goodwill and other impairments and asset sales, net |
5,426.4 |
31.5 |
5,698.7 |
3,927.7 |
|||||||||||||
Total operating expenses |
9,463.8 |
4,416.6 |
22,035.0 |
21,861.9 |
|||||||||||||
Operating (loss) |
(5,384.1) |
(90.5) |
(6,247.6) |
(5,921.2) |
|||||||||||||
Non-operating income (expense): |
|||||||||||||||||
Interest income |
11.6 |
14.7 |
45.2 |
67.7 |
|||||||||||||
Interest (expense) |
(210.2) |
(263.3) |
(911.2) |
(1,095.6) |
|||||||||||||
Other income (expense), net |
(9.9) |
(70.7) |
256.7 |
(3,437.3) |
|||||||||||||
Total other income (expense), net |
(208.5) |
(319.3) |
(609.3) |
(4,465.2) |
|||||||||||||
(Loss) before income taxes and noncontrolling interest |
(5,592.6) |
(409.8) |
(6,856.9) |
(10,386.4) |
|||||||||||||
(Benefit) for income taxes |
(1,296.7) |
(3,918.3) |
(1,770.7) |
(6,670.4) |
|||||||||||||
(Loss) from continuing operations, net of tax |
(4,295.9) |
3,508.5 |
(5,086.2) |
(3,716.0) |
|||||||||||||
(Loss) from discontinued operations, net of tax |
- |
(385.3) |
- |
(402.9) |
|||||||||||||
Net (loss) / income |
(4,295.9) |
3,123.2 |
(5,086.2) |
(4,118.9) |
|||||||||||||
(Income) attributable to noncontrolling interest |
(4.0) |
(1.9) |
(10.2) |
(6.6) |
|||||||||||||
Net (loss) /income attributable to shareholders |
(4,299.9) |
3,121.3 |
(5,096.4) |
(4,125.5) |
|||||||||||||
Dividends on preferred shares |
- |
69.6 |
46.4 |
278.4 |
|||||||||||||
Net (loss) / income attributable to ordinary shareholders |
$ |
(4,299.9) |
$ |
3,051.7 |
$ |
(5,142.8) |
$ |
(4,403.9) |
|||||||||
(Loss) / income per share attributable to ordinary shareholders - basic: |
|||||||||||||||||
Continuing operations |
$ |
(12.83) |
$ |
10.37 |
$ |
(15.26) |
$ |
(11.99) |
|||||||||
Discontinued operations |
- |
(1.16) |
- |
(1.20) |
|||||||||||||
Net (loss) / income per share - basic |
$ |
(12.83) |
$ |
9.21 |
$ |
(15.26) |
$ |
(13.19) |
|||||||||
(Loss) /income per share attributable to ordinary shareholders - diluted: |
|||||||||||||||||
Continuing operations |
$ |
(12.83) |
$ |
9.97 |
$ |
(15.26) |
$ |
(11.99) |
|||||||||
Discontinued operations |
- |
(1.09) |
- |
(1.20) |
|||||||||||||
Net (loss) /income per share - diluted |
$ |
(12.83) |
$ |
8.88 |
$ |
(15.26) |
$ |
(13.19) |
|||||||||
Dividends per ordinary share |
$ |
0.72 |
$ |
0.70 |
$ |
2.88 |
$ |
2.80 |
|||||||||
Weighted average shares outstanding: |
|||||||||||||||||
Basic |
335.1 |
331.3 |
337.0 |
333.8 |
|||||||||||||
Diluted |
335.1 |
351.6 |
337.0 |
333.8 |
The following table details Allergan plc's product revenue for significant promoted products globally, within the U.S., and international for the three and twelve months ended December 31, 2018 and 2017. |
||||||||||||||||||||||||||||||||||||||||||||||||
ALLERGAN PLC |
||||||||||||||||||||||||||||||||||||||||||||||||
NET REVENUES TOP GLOBAL PRODUCTS |
||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited; in millions) |
||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, 2018 |
Three Months Ended December 31, 2017 |
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® |
$ |
691.4 |
$ |
- |
$ |
254.5 |
$ |
- |
$ |
945.9 |
$ |
612.4 |
$ |
- |
$ |
251.9 |
$ |
- |
$ |
864.3 |
$ |
81.6 |
9.4 |
% |
||||||||||||||||||||||||
Restasis® |
325.0 |
- |
16.6 |
- |
341.6 |
400.3 |
- |
14.6 |
- |
414.9 |
(73.3) |
(17.7) |
% |
|||||||||||||||||||||||||||||||||||
Juvederm® Collection |
158.4 |
- |
174.0 |
- |
332.4 |
139.5 |
- |
154.7 |
- |
294.2 |
38.2 |
13.0 |
% |
|||||||||||||||||||||||||||||||||||
Linzess®/Constella® |
- |
205.2 |
6.4 |
- |
211.6 |
- |
194.8 |
5.8 |
- |
200.6 |
11.0 |
5.5 |
% |
|||||||||||||||||||||||||||||||||||
Lumigan®/Ganfort® |
74.0 |
- |
96.9 |
- |
170.9 |
80.9 |
- |
99.7 |
- |
180.6 |
(9.7) |
(5.4) |
% |
|||||||||||||||||||||||||||||||||||
Bystolic® /Byvalson® |
- |
151.7 |
0.4 |
- |
152.1 |
- |
157.5 |
0.6 |
- |
158.1 |
(6.0) |
(3.8) |
% |
|||||||||||||||||||||||||||||||||||
Vraylar® |
- |
150.5 |
- |
- |
150.5 |
- |
87.7 |
- |
- |
87.7 |
62.8 |
71.6 |
% |
|||||||||||||||||||||||||||||||||||
Alphagan®/Combigan® |
97.7 |
- |
46.7 |
- |
144.4 |
101.8 |
- |
46.7 |
- |
148.5 |
(4.1) |
(2.8) |
% |
|||||||||||||||||||||||||||||||||||
Lo Loestrin® |
- |
143.8 |
- |
- |
143.8 |
- |
126.5 |
- |
- |
126.5 |
17.3 |
13.7 |
% |
|||||||||||||||||||||||||||||||||||
Eye Drops |
47.9 |
- |
71.7 |
- |
119.6 |
47.3 |
- |
73.8 |
- |
121.1 |
(1.5) |
(1.2) |
% |
|||||||||||||||||||||||||||||||||||
Viibryd®/Fetzima® |
- |
95.5 |
2.3 |
- |
97.8 |
- |
89.0 |
1.0 |
- |
90.0 |
7.8 |
8.7 |
% |
|||||||||||||||||||||||||||||||||||
Alloderm® |
94.9 |
- |
2.5 |
- |
97.4 |
97.9 |
- |
2.5 |
- |
100.4 |
(3.0) |
(3.0) |
% |
|||||||||||||||||||||||||||||||||||
Breast Implants |
68.2 |
- |
10.5 |
- |
78.7 |
69.0 |
- |
40.1 |
- |
109.1 |
(30.4) |
(27.9) |
% |
|||||||||||||||||||||||||||||||||||
Coolsculpting® Consumables |
54.5 |
- |
23.4 |
- |
77.9 |
51.9 |
- |
15.3 |
- |
67.2 |
10.7 |
15.9 |
% |
|||||||||||||||||||||||||||||||||||
Zenpep® |
- |
66.8 |
0.4 |
- |
67.2 |
- |
58.5 |
- |
- |
58.5 |
8.7 |
14.9 |
% |
|||||||||||||||||||||||||||||||||||
Ozurdex ® |
29.3 |
- |
29.6 |
- |
58.9 |
26.4 |
- |
60.9 |
- |
87.3 |
(28.4) |
(32.5) |
% |
|||||||||||||||||||||||||||||||||||
Carafate ® /Sulcrate ® |
- |
54.1 |
0.7 |
- |
54.8 |
- |
59.2 |
0.8 |
- |
60.0 |
(5.2) |
(8.7) |
% |
|||||||||||||||||||||||||||||||||||
Armour Thyroid |
- |
53.4 |
- |
- |
53.4 |
- |
51.3 |
- |
- |
51.3 |
2.1 |
4.1 |
% |
|||||||||||||||||||||||||||||||||||
Viberzi® |
- |
48.9 |
0.6 |
- |
49.5 |
- |
42.9 |
0.2 |
- |
43.1 |
6.4 |
14.8 |
% |
|||||||||||||||||||||||||||||||||||
Coolsculpting® Systems & Add On Applicators |
26.8 |
- |
21.5 |
- |
48.3 |
42.5 |
- |
11.7 |
- |
54.2 |
(5.9) |
(10.9) |
% |
|||||||||||||||||||||||||||||||||||
Skin Care |
40.4 |
- |
3.6 |
- |
44.0 |
40.6 |
- |
4.4 |
- |
45.0 |
(1.0) |
(2.2) |
% |
|||||||||||||||||||||||||||||||||||
Canasa®/Salofalk® |
- |
38.8 |
4.5 |
- |
43.3 |
- |
47.0 |
5.0 |
- |
52.0 |
(8.7) |
(16.7) |
% |
|||||||||||||||||||||||||||||||||||
Asacol®/Delzicol® |
- |
27.9 |
10.7 |
- |
38.6 |
- |
42.8 |
13.4 |
- |
56.2 |
(17.6) |
(31.3) |
% |
|||||||||||||||||||||||||||||||||||
Saphris® |
- |
36.8 |
- |
- |
36.8 |
- |
37.7 |
- |
- |
37.7 |
(0.9) |
(2.4) |
% |
|||||||||||||||||||||||||||||||||||
Teflaro® |
- |
30.0 |
- |
- |
30.0 |
- |
29.2 |
- |
- |
29.2 |
0.8 |
2.7 |
% |
|||||||||||||||||||||||||||||||||||
Avycaz® |
- |
24.6 |
- |
- |
24.6 |
- |
18.5 |
- |
- |
18.5 |
6.1 |
33.0 |
% |
|||||||||||||||||||||||||||||||||||
Savella® |
- |
23.6 |
- |
- |
23.6 |
- |
23.9 |
- |
- |
23.9 |
(0.3) |
(1.3) |
% |
|||||||||||||||||||||||||||||||||||
Namzaric® |
- |
22.6 |
- |
- |
22.6 |
- |
36.8 |
- |
- |
36.8 |
(14.2) |
(38.6) |
% |
|||||||||||||||||||||||||||||||||||
Rapaflo® |
18.9 |
- |
1.8 |
- |
20.7 |
28.2 |
- |
1.8 |
- |
30.0 |
(9.3) |
(31.0) |
% |
|||||||||||||||||||||||||||||||||||
Dalvance® |
- |
17.3 |
1.0 |
- |
18.3 |
- |
13.0 |
1.2 |
- |
14.2 |
4.1 |
28.9 |
% |
|||||||||||||||||||||||||||||||||||
Estrace® Cream |
- |
14.7 |
- |
- |
14.7 |
- |
101.5 |
- |
- |
101.5 |
(86.8) |
(85.5) |
% |
|||||||||||||||||||||||||||||||||||
Liletta® |
- |
14.6 |
- |
- |
14.6 |
- |
14.5 |
- |
- |
14.5 |
0.1 |
0.7 |
% |
|||||||||||||||||||||||||||||||||||
Namenda® |
- |
10.7 |
- |
- |
10.7 |
- |
97.8 |
- |
- |
97.8 |
(87.1) |
(89.1) |
% |
|||||||||||||||||||||||||||||||||||
Kybella® /Belkyra® |
7.2 |
- |
1.0 |
- |
8.2 |
12.1 |
- |
1.7 |
- |
13.8 |
(5.6) |
(40.6) |
% |
|||||||||||||||||||||||||||||||||||
Minastrin® 24 |
- |
2.9 |
- |
- |
2.9 |
- |
5.3 |
- |
- |
5.3 |
(2.4) |
(45.3) |
% |
|||||||||||||||||||||||||||||||||||
Aczone® |
0.6 |
- |
0.1 |
- |
0.7 |
38.0 |
- |
0.2 |
- |
38.2 |
(37.5) |
(98.2) |
% |
|||||||||||||||||||||||||||||||||||
Tazorac® |
0.3 |
- |
0.1 |
- |
0.4 |
14.1 |
- |
0.2 |
- |
14.3 |
(13.9) |
(97.2) |
% |
|||||||||||||||||||||||||||||||||||
Other Products Revenues |
73.3 |
163.5 |
88.7 |
2.8 |
328.3 |
78.9 |
189.9 |
107.7 |
3.1 |
379.6 |
(51.3) |
(13.5) |
% |
|||||||||||||||||||||||||||||||||||
Total Net Revenues |
$ |
1,808.8 |
$ |
1,397.9 |
$ |
870.2 |
$ |
2.8 |
4,079.7 |
$ |
1,881.8 |
$ |
1,525.3 |
$ |
915.9 |
$ |
3.1 |
4,326.1 |
$ |
(246.4) |
(5.7) |
% |
||||||||||||||||||||||||||
Year Ended December 31, 2018 |
Year Ended December 31, 2017 |
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® |
$ |
2,545.8 |
$ |
- |
$ |
1,031.6 |
$ |
- |
$ |
3,577.4 |
$ |
2,254.4 |
$ |
- |
$ |
914.5 |
$ |
- |
$ |
3,168.9 |
$ |
408.5 |
12.9 |
% |
||||||||||||||||||||||||
Restasis® |
1,197.0 |
- |
64.5 |
- |
1,261.5 |
1,412.3 |
- |
61.3 |
- |
1,473.6 |
(212.1) |
(14.4) |
% |
|||||||||||||||||||||||||||||||||||
Juvederm® Collection |
548.2 |
- |
614.8 |
- |
1,163.0 |
501.1 |
- |
540.7 |
- |
1,041.8 |
121.2 |
11.6 |
% |
|||||||||||||||||||||||||||||||||||
Linzess®/Constella® |
- |
761.1 |
24.1 |
- |
785.2 |
- |
701.1 |
21.9 |
- |
723.0 |
62.2 |
8.6 |
% |
|||||||||||||||||||||||||||||||||||
Lumigan®/Ganfort® |
291.8 |
- |
392.6 |
- |
684.4 |
317.5 |
- |
371.5 |
- |
689.0 |
(4.6) |
(0.7) |
% |
|||||||||||||||||||||||||||||||||||
Bystolic® /Byvalson® |
- |
583.8 |
2.0 |
- |
585.8 |
- |
612.2 |
2.2 |
- |
614.4 |
(28.6) |
(4.7) |
% |
|||||||||||||||||||||||||||||||||||
Alphagan®/Combigan® |
375.4 |
- |
176.0 |
- |
551.4 |
377.3 |
- |
175.1 |
- |
552.4 |
(1.0) |
(0.2) |
% |
|||||||||||||||||||||||||||||||||||
Lo Loestrin® |
- |
527.7 |
- |
- |
527.7 |
- |
459.3 |
- |
- |
459.3 |
68.4 |
14.9 |
% |
|||||||||||||||||||||||||||||||||||
Vraylar® |
- |
487.1 |
- |
- |
487.1 |
- |
287.8 |
- |
- |
287.8 |
199.3 |
69.2 |
% |
|||||||||||||||||||||||||||||||||||
Eye Drops |
202.7 |
- |
279.7 |
- |
482.4 |
199.5 |
- |
281.0 |
- |
480.5 |
1.9 |
0.4 |
% |
|||||||||||||||||||||||||||||||||||
Alloderm® |
407.3 |
- |
8.0 |
- |
415.3 |
321.2 |
- |
7.5 |
- |
328.7 |
86.6 |
26.3 |
% |
|||||||||||||||||||||||||||||||||||
Viibryd®/Fetzima® |
- |
342.4 |
7.2 |
- |
349.6 |
- |
333.2 |
3.1 |
- |
336.3 |
13.3 |
4.0 |
% |
|||||||||||||||||||||||||||||||||||
Breast Implants |
263.0 |
- |
130.1 |
- |
393.1 |
242.6 |
- |
156.9 |
- |
399.5 |
(6.4) |
(1.6) |
% |
|||||||||||||||||||||||||||||||||||
Coolsculpting® Consumables |
235.3 |
- |
64.2 |
- |
299.5 |
150.1 |
- |
41.6 |
- |
191.7 |
107.8 |
56.2 |
% |
|||||||||||||||||||||||||||||||||||
Ozurdex ® |
111.0 |
- |
187.7 |
- |
298.7 |
98.4 |
- |
213.4 |
- |
311.8 |
(13.1) |
(4.2) |
% |
|||||||||||||||||||||||||||||||||||
Zenpep® |
- |
237.3 |
0.4 |
- |
237.7 |
- |
212.3 |
- |
- |
212.3 |
25.4 |
12.0 |
% |
|||||||||||||||||||||||||||||||||||
Carafate ® /Sulcrate ® |
- |
217.8 |
2.8 |
- |
220.6 |
- |
235.8 |
2.9 |
- |
238.7 |
(18.1) |
(7.6) |
% |
|||||||||||||||||||||||||||||||||||
Armour Thyroid |
- |
198.8 |
- |
- |
198.8 |
- |
169.1 |
- |
- |
169.1 |
29.7 |
17.6 |
% |
|||||||||||||||||||||||||||||||||||
Canasa®/Salofalk® |
- |
169.2 |
17.6 |
- |
186.8 |
- |
162.7 |
18.3 |
- |
181.0 |
5.8 |
3.2 |
% |
|||||||||||||||||||||||||||||||||||
Viberzi® |
- |
176.5 |
1.3 |
- |
177.8 |
- |
156.6 |
0.5 |
- |
157.1 |
20.7 |
13.2 |
% |
|||||||||||||||||||||||||||||||||||
Asacol®/Delzicol® |
- |
130.8 |
45.7 |
- |
176.5 |
- |
195.5 |
50.2 |
- |
245.7 |
(69.2) |
(28.2) |
% |
|||||||||||||||||||||||||||||||||||
Coolsculpting® Systems & Add On |
126.3 |
- |
43.3 |
- |
169.6 |
106.6 |
- |
32.1 |
- |
138.7 |
30.9 |
22.3 |
% |
|||||||||||||||||||||||||||||||||||
Skin Care |
138.8 |
- |
15.2 |
- |
154.0 |
153.2 |
- |
12.0 |
- |
165.2 |
(11.2) |
(6.8) |
% |
|||||||||||||||||||||||||||||||||||
Saphris® |
- |
139.7 |
- |
- |
139.7 |
- |
155.2 |
- |
- |
155.2 |
(15.5) |
(10.0) |
% |
|||||||||||||||||||||||||||||||||||
Teflaro® |
- |
128.0 |
0.3 |
- |
128.3 |
- |
121.9 |
- |
- |
121.9 |
6.4 |
5.3 |
% |
|||||||||||||||||||||||||||||||||||
Namzaric® |
- |
115.8 |
- |
- |
115.8 |
- |
130.8 |
- |
- |
130.8 |
(15.0) |
(11.5) |
% |
|||||||||||||||||||||||||||||||||||
Avycaz® |
- |
94.6 |
- |
- |
94.6 |
- |
61.2 |
- |
- |
61.2 |
33.4 |
54.6 |
% |
|||||||||||||||||||||||||||||||||||
Rapaflo® |
81.9 |
- |
6.4 |
- |
88.3 |
108.1 |
- |
7.3 |
- |
115.4 |
(27.1) |
(23.5) |
% |
|||||||||||||||||||||||||||||||||||
Savella® |
- |
85.0 |
- |
- |
85.0 |
- |
98.2 |
- |
- |
98.2 |
(13.2) |
(13.4) |
% |
|||||||||||||||||||||||||||||||||||
Dalvance® |
- |
56.1 |
2.3 |
- |
58.4 |
- |
53.9 |
2.4 |
- |
56.3 |
2.1 |
3.7 |
% |
|||||||||||||||||||||||||||||||||||
Aczone® |
55.1 |
- |
0.4 |
- |
55.5 |
166.3 |
- |
0.5 |
- |
166.8 |
(111.3) |
(66.7) |
% |
|||||||||||||||||||||||||||||||||||
Liletta® |
- |
50.9 |
- |
- |
50.9 |
- |
37.6 |
- |
- |
37.6 |
13.3 |
35.4 |
% |
|||||||||||||||||||||||||||||||||||
Namenda® |
- |
71.0 |
- |
- |
71.0 |
- |
452.9 |
- |
- |
452.9 |
(381.9) |
(84.3) |
% |
|||||||||||||||||||||||||||||||||||
Estrace® Cream |
- |
49.0 |
- |
- |
49.0 |
- |
366.6 |
- |
- |
366.6 |
(317.6) |
(86.6) |
% |
|||||||||||||||||||||||||||||||||||
Kybella® /Belkyra® |
31.8 |
- |
6.3 |
- |
38.1 |
49.5 |
- |
6.8 |
- |
56.3 |
(18.2) |
(32.3) |
% |
|||||||||||||||||||||||||||||||||||
Tazorac® |
25.4 |
- |
0.7 |
- |
26.1 |
65.4 |
- |
0.7 |
- |
66.1 |
(40.0) |
(60.5) |
% |
|||||||||||||||||||||||||||||||||||
Minastrin® 24 |
- |
9.5 |
- |
- |
9.5 |
- |
61.4 |
- |
- |
61.4 |
(51.9) |
(84.5) |
% |
|||||||||||||||||||||||||||||||||||
Other Products Revenues |
283.5 |
690.8 |
379.5 |
39.5 |
1,393.3 |
280.1 |
730.9 |
395.1 |
21.4 |
1,427.5 |
(34.2) |
(2.4) |
% |
|||||||||||||||||||||||||||||||||||
Total Net Revenues |
$ |
6,920.3 |
$ |
5,322.9 |
$ |
3,504.7 |
$ |
39.5 |
15,787.4 |
$ |
6,803.6 |
$ |
5,796.2 |
$ |
3,319.5 |
$ |
21.4 |
15,940.7 |
$ |
(153.3) |
(1.0) |
% |
||||||||||||||||||||||||||
The following table presents Allergan plc's Condensed Consolidated Balance Sheets as of December 31, 2018 and December 31, 2017. |
||||||||
Table 3 |
||||||||
ALLERGAN PLC |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(Unaudited; in millions) |
||||||||
December 31, |
December 31, |
|||||||
2018 |
2017 |
|||||||
Assets |
||||||||
Cash and cash equivalents |
$ |
880.4 |
$ |
1,817.2 |
||||
Marketable securities |
1,026.9 |
4,632.1 |
||||||
Accounts receivable, net |
2,868.1 |
2,899.0 |
||||||
Inventories |
846.9 |
904.5 |
||||||
Prepaid expenses and other current assets |
819.1 |
1,123.9 |
||||||
Assets held for sale |
916.2 |
81.6 |
||||||
Property, plant and equipment, net |
1,787.0 |
1,785.4 |
||||||
Investments and other assets |
3,034.3 |
587.0 |
||||||
Product rights and other intangibles |
43,695.4 |
54,648.3 |
||||||
Goodwill |
45,913.3 |
49,862.9 |
||||||
Total assets |
$ |
101,787.6 |
$ |
118,341.9 |
||||
Liabilities & Equity |
||||||||
Current liabilities |
$ |
4,859.6 |
$ |
5,616.3 |
||||
Current and long-term debt and capital leases |
23,797.7 |
30,075.3 |
||||||
Deferred income taxes and other liabilities |
7,999.3 |
8,813.2 |
||||||
Total equity |
65,131.0 |
73,837.1 |
||||||
Total liabilities and equity |
$ |
101,787.6 |
$ |
118,341.9 |
The following table presents Allergan plc's Consolidated Statements of Cash Flows for the three and twelve months ended December 31, 2018 and 2017. |
|||||||||||||||||
Table 4 |
|||||||||||||||||
ALLERGAN PLC |
|||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||||||||
(Unaudited; in millions) |
|||||||||||||||||
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||||
2018 |
2017 |
2018 |
2017 |
||||||||||||||
Cash Flows From Operating Activities: |
|||||||||||||||||
Net (loss) / income |
$ |
(4,295.9) |
$ |
3,123.2 |
$ |
(5,086.2) |
$ |
(4,118.9) |
|||||||||
Reconciliation to net cash provided by operating activities: |
|||||||||||||||||
Depreciation |
46.6 |
48.3 |
196.3 |
171.5 |
|||||||||||||
Amortization |
1,569.1 |
1,922.2 |
6,552.3 |
7,197.1 |
|||||||||||||
Provision for inventory reserve |
21.5 |
24.9 |
96.4 |
102.2 |
|||||||||||||
Share-based compensation |
54.6 |
72.5 |
239.8 |
293.3 |
|||||||||||||
Deferred income tax benefit |
107.1 |
(4,577.8) |
(1,255.7) |
(7,783.1) |
|||||||||||||
In-process research and development impairments |
6.6 |
207.0 |
804.6 |
1,452.3 |
|||||||||||||
Goodwill and other impairments and asset sales, net |
5,426.4 |
31.5 |
5,698.7 |
3,927.7 |
|||||||||||||
Net income impact of determining that the loss on investment of Teva securities is other-than-temporary |
- |
- |
- |
3,273.5 |
|||||||||||||
Charge to settle Teva related matters, net of tax |
- |
387.4 |
- |
387.4 |
|||||||||||||
Loss on forward sale of Teva shares |
- |
62.9 |
- |
62.9 |
|||||||||||||
Gain on sale of Teva shares, net |
- |
- |
(60.9) |
- |
|||||||||||||
Amortization of inventory step up |
- |
5.5 |
- |
131.7 |
|||||||||||||
Gain on sale of businesses |
- |
- |
(182.6) |
- |
|||||||||||||
Non-cash extinguishment of debt |
12.6 |
(7.5) |
30.0 |
(15.7) |
|||||||||||||
Cash charge related to extinguishment of debt |
(27.4) |
35.1 |
(45.6) |
205.6 |
|||||||||||||
Amortization of deferred financing costs |
5.2 |
8.2 |
22.6 |
27.8 |
|||||||||||||
Contingent consideration adjustments, including accretion |
6.6 |
(81.6) |
(106.5) |
(133.2) |
|||||||||||||
Other, net |
28.5 |
(18.8) |
29.0 |
(37.0) |
|||||||||||||
Changes in assets and liabilities (net of effects of acquisitions): |
|||||||||||||||||
Decrease / (increase) in accounts receivable, net |
(54.0) |
(49.8) |
(37.0) |
(188.3) |
|||||||||||||
Decrease / (increase) in inventories |
(9.5) |
(37.1) |
(145.7) |
(144.8) |
|||||||||||||
Decrease / (increase) in prepaid expenses and other current assets |
9.7 |
(17.9) |
4.3 |
27.9 |
|||||||||||||
Increase / (decrease) in accounts payable and accrued expenses |
197.7 |
452.2 |
151.6 |
95.9 |
|||||||||||||
Increase / (decrease) in income and other taxes payable |
(1,607.1) |
468.0 |
(1,191.6) |
1,114.1 |
|||||||||||||
Increase / (decrease) in other assets and liabilities |
0.3 |
25.1 |
(73.7) |
29.1 |
|||||||||||||
Net cash provided by operating activities |
1,498.6 |
2,083.5 |
5,640.1 |
6,079.0 |
|||||||||||||
Cash Flows From Investing Activities: |
|||||||||||||||||
Additions to property, plant and equipment |
(88.4) |
(115.9) |
(253.5) |
(349.9) |
|||||||||||||
Additions to product rights and other intangibles |
- |
(10.0) |
- |
(614.3) |
|||||||||||||
Additions to investments |
(1,015.3) |
(1,350.0) |
(2,471.7) |
(9,783.8) |
|||||||||||||
Proceeds from sale of investments and other assets |
58.0 |
678.9 |
6,259.3 |
15,153.3 |
|||||||||||||
Payments to settle Teva related matters |
- |
- |
(466.0) |
- |
|||||||||||||
Proceeds from sales of property, plant and equipment |
5.8 |
1.3 |
30.4 |
7.1 |
|||||||||||||
Acquisitions of businesses, net of cash acquired |
- |
- |
- |
(5,290.4) |
|||||||||||||
Net cash (used in) investing activities |
(1,039.9) |
(795.7) |
3,098.5 |
(878.0) |
|||||||||||||
Cash Flows From Financing Activities: |
|||||||||||||||||
Proceeds from borrowings on long-term indebtedness, including credit facility |
1,939.8 |
525.0 |
2,657.0 |
3,550.0 |
|||||||||||||
Proceeds from Forward Sale of Teva securities |
- |
- |
465.5 |
- |
|||||||||||||
Debt issuance and other financing costs |
(10.4) |
(3.1) |
(10.4) |
(20.6) |
|||||||||||||
Payments on debt, including capital lease obligations |
(1,688.6) |
(834.4) |
(8,804.5) |
(6,413.6) |
|||||||||||||
Cash charge related to extinguishment of debt |
- |
(35.1) |
- |
(205.6) |
|||||||||||||
Proceeds from stock plans |
4.2 |
16.2 |
102.4 |
183.4 |
|||||||||||||
Other financing, including contingent consideration |
(9.2) |
3.6 |
(30.9) |
(511.6) |
|||||||||||||
Payments to settle Teva related matters |
- |
- |
(234.0) |
- |
|||||||||||||
Repurchase of ordinary shares |
(751.9) |
(456.6) |
(2,775.4) |
(493.0) |
|||||||||||||
Dividends |
(241.7) |
(301.2) |
(1,049.8) |
(1,218.2) |
|||||||||||||
Net cash (used in) financing activities |
(757.8) |
(1,085.6) |
(9,680.1) |
(5,129.2) |
|||||||||||||
Effect of currency exchange rate changes on cash and cash equivalents |
(8.4) |
2.3 |
4.7 |
21.4 |
|||||||||||||
Net increase / (decrease) in cash and cash equivalents |
(307.5) |
204.5 |
(936.8) |
93.2 |
|||||||||||||
Cash and cash equivalents at beginning of period |
1,187.9 |
1,612.7 |
1,817.2 |
1,724.0 |
|||||||||||||
Cash and cash equivalents at end of period |
$ |
880.4 |
$ |
1,817.2 |
$ |
880.4 |
$ |
1,817.2 |
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 December 31, 2018 and December 31, 2017 was $32.3 billion and $25.8 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 and twelve months ended December 31, 2018 and 2017: |
||||||||||||||||||||||||||||||||||||||||
Table 5 |
||||||||||||||||||||||||||||||||||||||||
ALLERGAN PLC |
||||||||||||||||||||||||||||||||||||||||
GAAP TO NON-GAAP ADJUSTMENTS |
||||||||||||||||||||||||||||||||||||||||
(Unaudited; in millions) |
||||||||||||||||||||||||||||||||||||||||
Three Months Ended December 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 |
$ |
4,079.7 |
$ |
590.0 |
$ |
678.1 |
$ |
841.6 |
$ |
352.0 |
$ |
1,569.1 |
$ |
5,433.0 |
$ |
(198.6) |
$ |
(9.9) |
$ |
(1,296.7) |
||||||||||||||||||||
Purchase accounting impact on stock-based compensation for acquired awards |
- |
(0.3) |
(0.6) |
(1.4) |
(0.4) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Severance due to integration of acquired entities |
- |
- |
(0.6) |
- |
(2.5) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Non-acquisition related severance and restructuring |
- |
(5.2) |
(0.1) |
(20.3) |
0.2 |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Costs associated with disposed businesses |
- |
0.5 |
- |
0.2 |
(1.3) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Integration charges of acquired businesses |
- |
(0.1) |
0.2 |
- |
(10.4) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Milestones and upfront expenses for asset acquisitions |
||||||||||||||||||||||||||||||||||||||||
Bonti, Inc. |
- |
- |
(196.6) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Editas Medicine, Inc. |
- |
- |
(25.0) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Other |
- |
- |
(16.5) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Accretion and fair-value adjustments to contingent consideration |
- |
(3.7) |
(2.9) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Non-cash amortization of debt premium recognized in purchase accounting |
- |
- |
- |
- |
- |
- |
- |
(5.5) |
- |
- |
||||||||||||||||||||||||||||||
Impairment of Kybella®intangible asset |
- |
- |
- |
- |
- |
- |
(1,643.8) |
- |
- |
- |
||||||||||||||||||||||||||||||
Impairment of TrueTear®intangible asset |
- |
- |
- |
- |
- |
- |
(187.6) |
- |
- |
- |
||||||||||||||||||||||||||||||
Impairment of Goodwill |
- |
- |
- |
- |
- |
- |
(2,841.1) |
- |
- |
- |
||||||||||||||||||||||||||||||
Impairment of Anti-Infectives held for sale, including allocated goodwill of $622 million |
- |
- |
- |
- |
- |
- |
(771.7) |
- |
- |
- |
||||||||||||||||||||||||||||||
Asset sales and impairments, other |
- |
- |
- |
- |
- |
- |
25.5 |
- |
- |
- |
||||||||||||||||||||||||||||||
Impairment of assets held for sale |
- |
- |
- |
- |
- |
- |
(14.2) |
- |
- |
- |
||||||||||||||||||||||||||||||
Gain on bond repurchases |
- |
- |
- |
- |
- |
- |
- |
- |
(13.9) |
- |
||||||||||||||||||||||||||||||
Litigation settlement related charges |
- |
- |
- |
- |
(16.4) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Other adjustments |
- |
0.1 |
0.1 |
- |
(0.9) |
(1,569.1) |
(0.1) |
(0.1) |
(2.0) |
- |
||||||||||||||||||||||||||||||
Income taxes on pre-tax adjustments |
- |
- |
- |
- |
- |
- |
- |
- |
- |
658.8 |
||||||||||||||||||||||||||||||
Discrete income tax events |
- |
- |
- |
- |
- |
- |
- |
- |
- |
879.8 |
||||||||||||||||||||||||||||||
Non-GAAP Adjusted |
$ |
4,079.7 |
$ |
581.3 |
$ |
436.1 |
$ |
820.1 |
$ |
320.3 |
$ |
- |
$ |
- |
$ |
(204.2) |
$ |
(25.8) |
$ |
241.9 |
||||||||||||||||||||
Three Months Ended December 31, 2017 |
||||||||||||||||||||||||||||||||||||||||
Net Revenue |
COGS |
Research & Development |
Selling & Marketing |
General & Administrative |
Amortization |
Asset sales & |
Interest expense, net |
Other income (expense) |
Income taxes |
|||||||||||||||||||||||||||||||
GAAP |
$ |
4,326.1 |
$ |
580.9 |
$ |
408.2 |
$ |
877.7 |
$ |
389.1 |
$ |
1,922.2 |
$ |
238.5 |
$ |
(248.6) |
$ |
(70.7) |
$ |
(3,918.3) |
||||||||||||||||||||
Impact of selling through purchase accounting mark-up on acquired inventory |
- |
(5.5) |
- |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Purchase accounting impact on stock-based compensation for acquired awards |
- |
(1.3) |
(3.8) |
(6.7) |
(3.2) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Severance due to integration of acquired entities |
- |
- |
- |
(0.8) |
(0.6) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Non-acquisition related severance and restructuring related to the December 31, 2017 restructuring program |
- |
(7.7) |
(18.2) |
(56.5) |
(23.5) |
- |
(17.7) |
- |
- |
- |
||||||||||||||||||||||||||||||
Non-acquisition related severance and restructuring |
- |
(8.7) |
0.0 |
0.4 |
0.6 |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Costs associated with disposed businesses |
- |
(2.3) |
- |
(0.1) |
(2.3) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Integration charges of acquired businesses |
- |
- |
(0.9) |
0.2 |
(18.9) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Brand related milestones and upfront expenses for asset acquisitions |
||||||||||||||||||||||||||||||||||||||||
Other |
- |
- |
(5.3) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Accretion and fair-value adjustments to contingent consideration |
- |
55.9 |
25.7 |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Non-cash amortization of debt premium recognized in purchase accounting |
- |
- |
- |
- |
- |
- |
- |
(6.4) |
- |
- |
||||||||||||||||||||||||||||||
Impairment of IPR&D products acquired in the Allergan acquisition |
- |
- |
- |
- |
- |
- |
(207.0) |
- |
- |
- |
||||||||||||||||||||||||||||||
Asset sales and impairments, other |
- |
- |
- |
- |
- |
- |
(13.8) |
- |
- |
- |
||||||||||||||||||||||||||||||
Impact of debt refinancing |
- |
- |
- |
- |
- |
- |
- |
- |
27.6 |
- |
||||||||||||||||||||||||||||||
Loss on forward sale of Teva shares |
- |
- |
- |
- |
- |
- |
- |
- |
62.9 |
- |
||||||||||||||||||||||||||||||
Litigation settlement related charges |
- |
- |
- |
- |
(22.2) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Other adjustments |
- |
- |
- |
1.0 |
(1.4) |
(1,922.2) |
- |
- |
(11.4) |
- |
||||||||||||||||||||||||||||||
Income taxes on pre-tax adjustments |
- |
- |
- |
- |
- |
- |
- |
- |
- |
567.6 |
||||||||||||||||||||||||||||||
Discrete income tax events |
- |
- |
- |
- |
- |
- |
- |
- |
- |
3,570.2 |
||||||||||||||||||||||||||||||
Non-GAAP Adjusted |
$ |
4,326.1 |
$ |
611.3 |
$ |
405.7 |
$ |
815.2 |
$ |
317.6 |
$ |
- |
$ |
- |
$ |
(255.0) |
$ |
8.4 |
$ |
219.5 |
||||||||||||||||||||
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 December 31, 2018 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 December 31, 2018 excludes a net discrete tax benefit of approximately $879.8 million related to the tax effects of integration and recognition of outside basis differences, changes in the applicable tax rates on certain temporary differences, uncertain tax positions, changes in valuation allowances and other individually insignificant items. |
||||||||||||||||||||||||||||||||||||||||
Year Ended December 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 |
$ |
15,787.4 |
$ |
2,191.4 |
$ |
2,266.2 |
$ |
3,250.6 |
$ |
1,271.2 |
$ |
6,552.3 |
$ |
6,503.3 |
$ |
(866.0) |
$ |
256.7 |
$ |
(1,770.7) |
||||||||||||||||||||
Purchase accounting impact on stock-based compensation for acquired awards |
- |
(2.1) |
(4.8) |
(8.6) |
(2.9) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Severance due to integration of acquired entities |
- |
- |
(0.6) |
(0.7) |
(3.3) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Non-acquisition related severance and restructuring |
- |
(33.7) |
(1.9) |
(38.8) |
(5.4) |
- |
(13.6) |
- |
- |
- |
||||||||||||||||||||||||||||||
Costs associated with disposed businesses |
- |
(1.0) |
- |
0.2 |
(4.1) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Integration charges of acquired businesses |
- |
(0.3) |
(0.6) |
(1.0) |
(43.5) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Milestones and upfront expenses for asset acquisitions |
||||||||||||||||||||||||||||||||||||||||
Elastagen Pty Ltd |
- |
- |
(96.1) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
AstraZeneca plc |
- |
- |
(90.0) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Merck & Co. |
- |
- |
(115.0) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Chase Pharmaceuticals Corporation |
- |
- |
(75.0) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Repros Therapeutics, Inc. |
- |
- |
(33.2) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Bonti, Inc. |
- |
- |
(196.6) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Editas Medicine, Inc. |
- |
- |
(40.0) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Other |
- |
- |
(33.0) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Accretion and fair-value adjustments to contingent consideration |
- |
111.7 |
(5.1) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Non-cash amortization of debt premium recognized in purchase accounting |
- |
- |
- |
- |
- |
- |
- |
(21.2) |
- |
- |
||||||||||||||||||||||||||||||
Impairment of Kybella®intangible asset |
- |
- |
- |
- |
- |
- |
(1,643.8) |
- |
- |
- |
||||||||||||||||||||||||||||||
Impairment of TrueTear®intangible asset |
- |
- |
- |
- |
- |
- |
(187.6) |
- |
- |
- |
||||||||||||||||||||||||||||||
Impairment of Goodwill |
- |
- |
- |
- |
- |
- |
(2,841.1) |
- |
- |
- |
||||||||||||||||||||||||||||||
Impairment of Anti-Infectives held for sale, including allocated goodwill of $622 million |
- |
- |
- |
- |
- |
- |
(771.7) |
- |
- |
- |
||||||||||||||||||||||||||||||
Impairment of IPR&D products acquired in the Allergan acquisition |
- |
- |
- |
- |
- |
- |
(236.0) |
- |
- |
- |
||||||||||||||||||||||||||||||
Impairment of IPR&D products acquired in the Vitae acquisition |
- |
- |
- |
- |
- |
- |
(40.0) |
- |
- |
- |
||||||||||||||||||||||||||||||
Impairment of assets held for sale |
- |
- |
- |
- |
- |
- |
(266.2) |
- |
- |
- |
||||||||||||||||||||||||||||||
Impairment of RORgt IPR&D product |
- |
- |
- |
- |
- |
- |
(522.0) |
- |
- |
- |
||||||||||||||||||||||||||||||
Asset sales and impairments, other |
- |
- |
- |
- |
- |
- |
18.4 |
- |
- |
- |
||||||||||||||||||||||||||||||
Gain on Teva securities |
- |
- |
- |
- |
- |
- |
- |
- |
(60.6) |
- |
||||||||||||||||||||||||||||||
Milestone component of ongoing intellectual property agreement |
(25.0) |
- |
- |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Gain on sale of divested businesses |
- |
- |
- |
- |
- |
- |
- |
- |
(182.6) |
- |
||||||||||||||||||||||||||||||
Gain on bond repurchases |
- |
- |
- |
- |
- |
- |
- |
- |
(15.6) |
- |
||||||||||||||||||||||||||||||
Litigation settlement related charges |
- |
- |
- |
- |
(56.8) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Other adjustments |
- |
0.1 |
0.2 |
- |
(2.0) |
(6,552.3) |
0.3 |
(0.1) |
(5.7) |
- |
||||||||||||||||||||||||||||||
Income taxes on pre-tax adjustments |
- |
- |
- |
- |
- |
- |
- |
- |
- |
1,506.1 |
||||||||||||||||||||||||||||||
Discrete income tax events |
- |
- |
- |
- |
- |
- |
- |
- |
- |
1,213.8 |
||||||||||||||||||||||||||||||
Non-GAAP Adjusted |
$ |
15,762.4 |
$ |
2,266.1 |
$ |
1,574.5 |
$ |
3,201.7 |
$ |
1,153.2 |
$ |
- |
$ |
- |
$ |
(887.3) |
$ |
(7.8) |
$ |
949.2 |
||||||||||||||||||||
Year Ended December 31, 2017 |
||||||||||||||||||||||||||||||||||||||||
Net Revenue |
COGS |
Research & Development |
Selling & Marketing |
General & Administrative |
Amortization |
Asset sales & Impairments, net |
Interest expense, net |
Other income (expense) |
Income taxes |
|||||||||||||||||||||||||||||||
GAAP |
$ |
15,940.7 |
$ |
2,168.0 |
$ |
2,100.1 |
$ |
3,514.8 |
$ |
1,501.9 |
$ |
7,197.1 |
$ |
5,380.0 |
$ |
(1,027.9) |
$ |
(3,437.3) |
$ |
(6,670.4) |
||||||||||||||||||||
Impact of selling through purchase accounting mark-up on acquired inventory |
- |
(131.7) |
- |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Expenditures incurred with the Pfizer transaction |
- |
(2.0) |
(2.4) |
(5.6) |
(10.5) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Purchase accounting impact on stock-based compensation for acquired awards |
- |
(4.6) |
(18.3) |
(33.1) |
(49.0) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Severance due to integration of acquired entities |
- |
(0.5) |
(3.0) |
(19.5) |
(17.3) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Non-acquisition related severance and restructuring related to the December 31, 2017 announced restructuring program |
(7.7) |
(18.2) |
(56.5) |
(23.5) |
- |
(17.7) |
- |
- |
- |
|||||||||||||||||||||||||||||||
Non-acquisition related severance and restructuring |
- |
(53.8) |
(15.1) |
(24.3) |
(9.3) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Costs associated with disposed businesses |
- |
(4.9) |
- |
(0.3) |
(16.0) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Integration charges of acquired businesses |
- |
(0.6) |
(3.2) |
(4.1) |
(95.0) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Brand related milestones and upfront expenses for asset acquisitions |
||||||||||||||||||||||||||||||||||||||||
Assembly Biosciences, Inc. |
- |
- |
(50.0) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Lysosomal Therapeutics, Inc. |
- |
- |
(145.0) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Editas Medicine Inc. |
- |
- |
(90.0) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Akarna Therapeutics, Ltd. |
- |
- |
(39.6) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Heptares Therapeutics Ltd. |
- |
- |
(15.0) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Lyndra, Inc. |
- |
- |
(15.0) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Other |
- |
- |
(37.2) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Accretion and fair-value adjustments to contingent consideration |
- |
183.2 |
(50.0) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Net income impact of determining that the loss on investment of Teva securities is other-than-temporary |
- |
- |
- |
- |
- |
- |
- |
- |
3,273.5 |
- |
||||||||||||||||||||||||||||||
Non-cash amortization of debt premium recognized in purchase accounting |
- |
- |
- |
- |
- |
- |
- |
(33.2) |
- |
- |
||||||||||||||||||||||||||||||
Termination of agreement for SER-120 |
- |
- |
- |
- |
- |
- |
(147.4) |
- |
- |
- |
||||||||||||||||||||||||||||||
Impairment of Restasis intangible assets and dry eye IPR&D projects acquired in the Allergan acquisition |
- |
- |
- |
- |
- |
- |
(3,394.0) |
- |
- |
- |
||||||||||||||||||||||||||||||
Impairment of Aczone intangible assets |
- |
- |
- |
- |
- |
- |
(646.0) |
- |
- |
- |
||||||||||||||||||||||||||||||
Impairment of IPR&D products acquired in the Allergan acquisition |
- |
- |
- |
- |
- |
- |
(774.0) |
- |
- |
- |
||||||||||||||||||||||||||||||
Decrease in realization of certain R&D projects acquired in the Uteron acquisition |
- |
- |
- |
- |
- |
- |
(91.3) |
- |
- |
- |
||||||||||||||||||||||||||||||
Decrease in realization of certain R&D projects acquired in the Warner Chilcott acquisition |
- |
- |
- |
- |
- |
- |
(278.0) |
- |
- |
- |
||||||||||||||||||||||||||||||
Asset sales and impairments, other |
- |
- |
- |
- |
- |
- |
(31.6) |
- |
- |
- |
||||||||||||||||||||||||||||||
Settlement of Naurex, Inc. agreement |
- |
- |
- |
- |
- |
- |
- |
- |
(20.0) |
- |
||||||||||||||||||||||||||||||
Loss on forward sale of Teva shares |
- |
- |
- |
- |
- |
- |
- |
- |
62.9 |
- |
||||||||||||||||||||||||||||||
Impact of debt refinancing |
- |
- |
- |
- |
(12.6) |
- |
- |
- |
189.1 |
- |
||||||||||||||||||||||||||||||
Litigation settlement related charges |
- |
- |
- |
- |
(96.5) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Other adjustments |
- |
(12.5) |
0.7 |
(0.5) |
11.7 |
(7,197.1) |
- |
- |
(5.4) |
- |
||||||||||||||||||||||||||||||
Income taxes on pre-tax adjustments |
- |
- |
- |
- |
- |
- |
- |
- |
- |
3,717.9 |
||||||||||||||||||||||||||||||
Discrete income tax events |
- |
- |
- |
- |
- |
- |
- |
- |
- |
3,790.9 |
||||||||||||||||||||||||||||||
Non-GAAP Adjusted |
$ |
15,940.7 |
$ |
2,132.9 |
$ |
1,598.8 |
$ |
3,370.9 |
$ |
1,183.9 |
$ |
- |
$ |
- |
$ |
(1,061.1) |
$ |
62.8 |
$ |
838.4 |
||||||||||||||||||||
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 twelve months ended December 31, 2018 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 twelve months ended December 31, 2018 excludes a net discrete tax benefit of approximately $1,213.8 million related to the tax effects of integration and recognition of outside basis differences, changes in the applicable tax rates on certain temporary differences, uncertain tax positions, changes in valuation allowances 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 and twelve months ended December 31, 2018 and 2017: |
|||||||||||||||
Table 6 |
|||||||||||||||
ALLERGAN PLC |
|||||||||||||||
RECONCILIATION TABLE |
|||||||||||||||
(Unaudited; in millions except per share amounts) |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
December 31, |
December 31, |
||||||||||||||
2018 |
2017 |
2018 |
2017 |
||||||||||||
GAAP to Non-GAAP Performance net income calculation |
|||||||||||||||
GAAP (loss) / income from continuing operations attributable to shareholders |
$ |
(4,299.9) |
$ |
3,506.6 |
$ |
(5,096.4) |
$ |
(3,722.6) |
|||||||
Adjusted for: |
|||||||||||||||
Amortization |
1,569.1 |
1,922.2 |
6,552.3 |
7,197.1 |
|||||||||||
Acquisition, divestiture and licensing (income) / charges |
249.9 |
108.4 |
485.7 |
4,083.4 |
|||||||||||
Accretion and fair-value adjustments to contingent consideration |
6.6 |
(81.6) |
(106.6) |
(133.2) |
|||||||||||
Goodwill and other impairments and asset sales, net and related costs |
5,433.0 |
238.5 |
6,503.3 |
5,380.0 |
|||||||||||
Other |
(15.9) |
16.2 |
(42.6) |
210.1 |
|||||||||||
Non-acquisition restructurings, including Global Supply Chain initiatives |
25.4 |
113.6 |
79.8 |
208.4 |
|||||||||||
Legal settlements |
16.4 |
22.2 |
56.8 |
96.5 |
|||||||||||
Income taxes on items above and other discrete income tax adjustments |
(1,538.6) |
(4,137.8) |
(2,719.9) |
(7,508.8) |
|||||||||||
Non-GAAP performance net income attributable to shareholders |
$ |
1,446.0 |
$ |
1,708.3 |
$ |
5,712.4 |
$ |
5,810.9 |
|||||||
Diluted earnings per share |
|||||||||||||||
Diluted (loss) / income per share from continuing operations attributable to shareholders- GAAP |
$ |
(12.83) |
$ |
9.97 |
$ |
(15.12) |
$ |
(11.15) |
|||||||
Non-GAAP performance net income per share attributable to shareholders |
$ |
4.29 |
$ |
4.86 |
$ |
16.69 |
$ |
16.35 |
|||||||
Basic weighted average ordinary shares outstanding |
335.1 |
331.3 |
337.0 |
333.8 |
|||||||||||
Effect of dilutive securities: |
|||||||||||||||
Dilutive shares |
2.3 |
20.3 |
5.2 |
21.6 |
|||||||||||
Diluted weighted average ordinary shares outstanding |
337.4 |
351.6 |
342.2 |
355.4 |
|||||||||||
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 and twelve months ended December 31, 2018 and 2017 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 |
Year Ended |
||||||||||||||
December 31, |
December 31, |
||||||||||||||
2018 |
2017 |
2018 |
2017 |
||||||||||||
GAAP (loss) / income from continuing operations attributable to shareholders |
$ |
(4,299.9) |
$ |
3,506.6 |
$ |
(5,096.4) |
$ |
(3,722.6) |
|||||||
Plus: |
|||||||||||||||
Interest expense |
210.2 |
263.3 |
911.2 |
1,095.6 |
|||||||||||
Interest income |
(11.6) |
(14.7) |
(45.2) |
(67.7) |
|||||||||||
(Benefit) for income taxes |
(1,296.7) |
(3,918.3) |
(1,770.7) |
(6,670.4) |
|||||||||||
Depreciation |
46.6 |
48.3 |
196.3 |
171.5 |
|||||||||||
Amortization |
1,569.1 |
1,922.2 |
6,552.3 |
7,197.1 |
|||||||||||
EBITDA |
$ |
(3,782.3) |
$ |
1,807.4 |
$ |
747.5 |
$ |
(1,996.5) |
|||||||
Adjusted for: |
|||||||||||||||
Acquisition, divestiture and licensing charges |
252.7 |
95.7 |
480.3 |
4,007.5 |
|||||||||||
Goodwill and other impairments and asset sales, net and related costs |
5,433.0 |
238.5 |
6,503.3 |
5,380.0 |
|||||||||||
Other |
(15.9) |
16.2 |
(42.6) |
210.1 |
|||||||||||
Non-acquisition restructurings, including Global Supply Chain initiatives, excluding depreciation |
25.4 |
113.6 |
75.6 |
208.4 |
|||||||||||
Legal settlements |
16.4 |
22.2 |
56.8 |
96.5 |
|||||||||||
Accretion and fair-value adjustments to contingent consideration |
6.6 |
(81.6) |
(106.6) |
(133.2) |
|||||||||||
Share-based compensation including cash settlements |
54.6 |
72.5 |
239.8 |
324.8 |
|||||||||||
Adjusted EBITDA |
$ |
1,990.5 |
$ |
2,284.5 |
$ |
7,954.1 |
$ |
8,097.6 |
|||||||
Adjusted for: |
|||||||||||||||
Depreciation |
(46.6) |
(48.3) |
(192.1) |
(171.5) |
|||||||||||
Dividend income |
- |
(8.5) |
- |
(85.2) |
|||||||||||
Other income (expense) related to fair value accounting* |
25.8 |
- |
7.0 |
22.3 |
|||||||||||
Share-based compensation not related to restructuring charges and purchase accounting impact on stock-based compensation for acquired awards |
(51.9) |
(53.4) |
(213.2) |
(215.7) |
|||||||||||
Non-GAAP Operating Income |
$ |
1,917.8 |
$ |
2,174.3 |
$ |
7,555.8 |
$ |
7,647.5 |
|||||||
* YTD 2018 amounts relate to mark to market adjustments on available for sale securities and non-service components of pension costs based on ASU 2016-01 and ASU 2017-07, respectively. Amounts in the twelve months ended December 31, 2017 represent an other-than-temporary impairment of securities. |
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 and twelve months ended December 31, 2018 and 2017. 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 December 31, 2018 |
Three Months Ended December 31, 2017 |
|||||||||||||||||||||||||||||||||||||||
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 |
$ |
1,808.8 |
$ |
1,397.9 |
$ |
870.2 |
$ |
2.8 |
$ |
4,079.7 |
$ |
1,881.8 |
$ |
1,525.3 |
$ |
915.9 |
$ |
3.1 |
$ |
4,326.1 |
||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||||||||||||
Cost of sales(1) |
139.3 |
195.1 |
146.1 |
100.8 |
581.3 |
146.0 |
220.7 |
137.1 |
107.5 |
611.3 |
||||||||||||||||||||||||||||||
Selling and marketing |
378.1 |
211.1 |
230.8 |
0.1 |
820.1 |
328.8 |
245.8 |
240.6 |
- |
815.2 |
||||||||||||||||||||||||||||||
General and administrative |
59.7 |
45.1 |
41.3 |
174.2 |
320.3 |
58.8 |
47.6 |
34.1 |
177.1 |
317.6 |
||||||||||||||||||||||||||||||
Segment contribution |
$ |
1,231.7 |
$ |
946.6 |
$ |
452.0 |
$ |
(272.3) |
$ |
2,358.0 |
$ |
1,348.2 |
$ |
1,011.2 |
$ |
504.1 |
$ |
(281.5) |
$ |
2,582.0 |
||||||||||||||||||||
Segment margin |
68.1 |
% |
67.7 |
% |
51.9 |
% |
n.m. |
57.8 |
% |
71.6 |
% |
66.3 |
% |
55.0 |
% |
n.m. |
59.7 |
% |
||||||||||||||||||||||
Segment gross margin(2) |
92.3 |
% |
86.0 |
% |
83.2 |
% |
n.m. |
85.8 |
% |
92.2 |
% |
85.5 |
% |
85.0 |
% |
n.m. |
85.9 |
% |
||||||||||||||||||||||
(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. |
||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 |
Year Ended December 31, 2017 |
|||||||||||||||||||||||||||||||||||||||
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 |
$ |
6,920.3 |
$ |
5,322.9 |
$ |
3,504.7 |
$ |
14.5 |
$ |
15,762.4 |
$ |
6,803.6 |
$ |
5,796.2 |
$ |
3,319.5 |
$ |
21.4 |
$ |
15,940.7 |
||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||||||||||||
Cost of sales(1) |
565.2 |
799.1 |
537.1 |
364.7 |
2,266.1 |
495.4 |
843.9 |
478.7 |
314.9 |
2,132.9 |
||||||||||||||||||||||||||||||
Selling and marketing |
1,348.3 |
924.6 |
928.7 |
0.1 |
3,201.7 |
1,369.5 |
1,084.1 |
913.8 |
3.5 |
3,370.9 |
||||||||||||||||||||||||||||||
General and administrative |
205.3 |
156.4 |
141.7 |
649.8 |
1,153.2 |
208.2 |
177.3 |
120.6 |
677.8 |
1,183.9 |
||||||||||||||||||||||||||||||
Segment contribution |
$ |
4,801.5 |
$ |
3,442.8 |
$ |
1,897.2 |
$ |
(1,000.1) |
$ |
9,141.4 |
$ |
4,730.5 |
$ |
3,690.9 |
$ |
1,806.4 |
$ |
(974.8) |
$ |
9,253.0 |
||||||||||||||||||||
Segment margin |
69.4 |
% |
64.7 |
% |
54.1 |
% |
n.m. |
58.0 |
% |
69.5 |
% |
63.7 |
% |
54.4 |
% |
n.m. |
58.0 |
% |
||||||||||||||||||||||
Segment gross margin(2) |
91.8 |
% |
85.0 |
% |
84.7 |
% |
n.m. |
85.6 |
% |
92.7 |
% |
85.4 |
% |
85.6 |
% |
n.m. |
86.6 |
% |
||||||||||||||||||||||
(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 and twelve months ended December 31, 2018 and 2017. |
||||||||||||||||
Table 9 |
||||||||||||||||
ALLERGAN PLC |
||||||||||||||||
US Specialized Therapeutics Product Revenue |
||||||||||||||||
(Unaudited; in millions) |
||||||||||||||||
Three Months Ended December 31, |
Change |
|||||||||||||||
2018 |
2017 |
Dollars |
% |
|||||||||||||
Total Eye Care |
$ |
587.3 |
$ |
671.7 |
$ |
(84.4) |
(12.6) |
% |
||||||||
Restasis® |
325.0 |
400.3 |
(75.3) |
(18.8) |
% |
|||||||||||
Alphagan®/Combigan® |
97.7 |
101.8 |
(4.1) |
(4.0) |
% |
|||||||||||
Lumigan®/Ganfort® |
74.0 |
80.9 |
(6.9) |
(8.5) |
% |
|||||||||||
Ozurdex® |
29.3 |
26.4 |
2.9 |
11.0 |
% |
|||||||||||
Eye Drops |
47.9 |
47.3 |
0.6 |
1.3 |
% |
|||||||||||
Other Eye Care |
13.4 |
15.0 |
(1.6) |
(10.7) |
% |
|||||||||||
Total Medical Aesthetics |
738.3 |
712.9 |
25.4 |
3.6 |
% |
|||||||||||
Facial Aesthetics |
423.7 |
380.0 |
43.7 |
11.5 |
% |
|||||||||||
Botox®Cosmetics |
258.1 |
228.4 |
29.7 |
13.0 |
% |
|||||||||||
Juvederm®Collection |
158.4 |
139.5 |
18.9 |
13.5 |
% |
|||||||||||
Kybella® |
7.2 |
12.1 |
(4.9) |
(40.5) |
% |
|||||||||||
Plastic Surgery |
68.2 |
69.0 |
(0.8) |
(1.2) |
% |
|||||||||||
Breast Implants |
68.2 |
69.0 |
(0.8) |
(1.2) |
% |
|||||||||||
Regenerative Medicine |
124.7 |
128.9 |
(4.2) |
(3.3) |
% |
|||||||||||
Alloderm® |
94.9 |
97.9 |
(3.0) |
(3.1) |
% |
|||||||||||
Other Regenerative Medicine |
29.8 |
31.0 |
(1.2) |
(3.9) |
% |
|||||||||||
Body Contouring |
81.3 |
94.4 |
(13.1) |
(13.9) |
% |
|||||||||||
Coolsculpting®Systems & Add On Applicators |
26.8 |
42.5 |
(15.7) |
(36.9) |
% |
|||||||||||
Coolsculpting®Consumables |
54.5 |
51.9 |
2.6 |
5.0 |
% |
|||||||||||
Skin Care |
40.4 |
40.6 |
(0.2) |
(0.5) |
% |
|||||||||||
Total Medical Dermatology |
4.5 |
68.7 |
(64.2) |
(93.4) |
% |
|||||||||||
Aczone® |
0.6 |
38.0 |
(37.4) |
(98.4) |
% |
|||||||||||
Tazorac® |
0.3 |
14.1 |
(13.8) |
(97.9) |
% |
|||||||||||
Other Medical Dermatology |
3.6 |
16.6 |
(13.0) |
(78.3) |
% |
|||||||||||
Total Neuroscience & Urology |
452.2 |
412.2 |
40.0 |
9.7 |
% |
|||||||||||
Botox®Therapeutics(3) |
433.3 |
384.0 |
49.3 |
12.8 |
% |
|||||||||||
Rapaflo® |
18.9 |
28.2 |
(9.3) |
(33.0) |
% |
|||||||||||
Other Revenues |
26.5 |
16.3 |
10.2 |
62.6 |
% |
|||||||||||
Net Revenues |
$ |
1,808.8 |
$ |
1,881.8 |
$ |
(73.0) |
(3.9) |
% |
||||||||
Operating expenses: |
||||||||||||||||
Cost of sales(1) |
139.3 |
146.0 |
(6.7) |
(4.6) |
% |
|||||||||||
Selling and marketing |
378.1 |
328.8 |
49.3 |
15.0 |
% |
|||||||||||
General and administrative |
59.7 |
58.8 |
0.9 |
1.5 |
% |
|||||||||||
Segment contribution |
$ |
1,231.7 |
$ |
1,348.2 |
$ |
(116.5) |
(8.6) |
% |
||||||||
Segment margin |
68.1 |
% |
71.6 |
% |
(3.5) |
% |
||||||||||
Segment gross margin(2) |
92.3 |
% |
92.2 |
% |
0.1 |
% |
||||||||||
(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. |
||||||||||||||||
(3) Botox Therapeutics includes Botox Hyperhidrosis, which was previously included within Medical Dermatology. The amount of Botox Hyperhidrosis for the three months ended December 31, 2017 was $16.8 million. |
||||||||||||||||
Year Ended December 31, |
Change |
|||||||||||||||
2018 |
2017 |
Dollars |
% |
|||||||||||||
Total Eye Care |
$ |
2,235.7 |
$ |
2,460.2 |
$ |
(224.5) |
(9.1) |
% |
||||||||
Restasis® |
1,197.0 |
1,412.3 |
(215.3) |
(15.2) |
% |
|||||||||||
Alphagan®/Combigan® |
375.4 |
377.3 |
(1.9) |
(0.5) |
% |
|||||||||||
Lumigan®/Ganfort® |
291.8 |
317.5 |
(25.7) |
(8.1) |
% |
|||||||||||
Ozurdex® |
111.0 |
98.4 |
12.6 |
12.8 |
% |
|||||||||||
Eye Drops |
202.7 |
199.5 |
3.2 |
1.6 |
% |
|||||||||||
Other Eye Care |
57.8 |
55.2 |
2.6 |
4.7 |
% |
|||||||||||
Total Medical Aesthetics |
2,774.6 |
2,449.2 |
325.4 |
13.3 |
% |
|||||||||||
Facial Aesthetics |
1,487.3 |
1,362.8 |
124.5 |
9.1 |
% |
|||||||||||
Botox®Cosmetics |
907.3 |
812.2 |
95.1 |
11.7 |
% |
|||||||||||
Juvederm®Collection |
548.2 |
501.1 |
47.1 |
9.4 |
% |
|||||||||||
Kybella® |
31.8 |
49.5 |
(17.7) |
(35.8) |
% |
|||||||||||
Plastic Surgery |
263.0 |
242.6 |
20.4 |
8.4 |
% |
|||||||||||
Breast Implants |
263.0 |
242.6 |
20.4 |
8.4 |
% |
|||||||||||
Regenerative Medicine |
523.9 |
433.9 |
90.0 |
20.7 |
% |
|||||||||||
Alloderm® |
407.3 |
321.2 |
86.1 |
26.8 |
% |
|||||||||||
Other Regenerative Medicine |
116.6 |
112.7 |
3.9 |
3.5 |
% |
|||||||||||
Body Contouring |
361.6 |
256.7 |
104.9 |
40.9 |
% |
|||||||||||
Coolsculpting®Systems & Add On Applicators |
126.3 |
106.6 |
19.7 |
18.5 |
% |
|||||||||||
Coolsculpting®Consumables |
235.3 |
150.1 |
85.2 |
56.8 |
% |
|||||||||||
Skin Care |
138.8 |
153.2 |
(14.4) |
(9.4) |
% |
|||||||||||
Total Medical Dermatology |
115.5 |
273.6 |
(158.1) |
(57.8) |
% |
|||||||||||
Aczone® |
55.1 |
166.3 |
(111.2) |
(66.9) |
% |
|||||||||||
Tazorac® |
25.4 |
65.4 |
(40.0) |
(61.2) |
% |
|||||||||||
Other Medical Dermatology |
35.0 |
41.9 |
(6.9) |
(16.5) |
% |
|||||||||||
Total Neuroscience & Urology |
1,720.4 |
1,550.3 |
170.1 |
11.0 |
% |
|||||||||||
Botox®Therapeutics (3) |
1,638.5 |
1,442.2 |
196.3 |
13.6 |
% |
|||||||||||
Rapaflo® |
81.9 |
108.1 |
(26.2) |
(24.2) |
% |
|||||||||||
Other Revenues |
74.1 |
70.3 |
3.8 |
5.4 |
% |
|||||||||||
Net Revenues |
$ |
6,920.3 |
$ |
6,803.6 |
$ |
116.7 |
1.7 |
% |
||||||||
Operating expenses: |
||||||||||||||||
Cost of sales(1) |
565.2 |
495.4 |
69.8 |
14.1 |
% |
|||||||||||
Selling and marketing |
1,348.3 |
1,369.5 |
(21.2) |
(1.5) |
% |
|||||||||||
General and administrative |
205.3 |
208.2 |
(2.9) |
(1.4) |
% |
|||||||||||
Segment contribution |
$ |
4,801.5 |
$ |
4,730.5 |
$ |
71.0 |
1.5 |
% |
||||||||
Segment margin |
69.4 |
% |
69.5 |
% |
(0.1) |
% |
||||||||||
Segment gross margin(2) |
91.8 |
% |
92.7 |
% |
(0.9) |
% |
||||||||||
(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. |
||||||||||||||||
(3) Botox Therapeutics includes Botox Hyperhidrosis, which was previously included within Medical Dermatology. The amount of Botox Hyperhidrosis for the year ended December 31, 2017 was $67.2 million. |
The following table details Allergan plc's product revenue for significant promoted products within the US General Medicine segment for the three and twelve months ended December 31, 2018 and 2017. |
||||||||||||||||
Table 10 |
||||||||||||||||
ALLERGAN PLC |
||||||||||||||||
US General Medicine Product Revenue |
||||||||||||||||
(Unaudited; in millions) |
||||||||||||||||
Three Months Ended December 31, |
Change |
|||||||||||||||
2018 |
2017 |
Dollars |
% |
|||||||||||||
Total Central Nervous System (CNS) |
$ |
316.1 |
$ |
349.0 |
$ |
(32.9) |
(9.4) |
% |
||||||||
Vraylar® |
150.5 |
87.7 |
62.8 |
71.6 |
% |
|||||||||||
Viibryd®/Fetzima® |
95.5 |
89.0 |
6.5 |
7.3 |
% |
|||||||||||
Saphris® |
36.8 |
37.7 |
(0.9) |
(2.4) |
% |
|||||||||||
Namzaric® |
22.6 |
36.8 |
(14.2) |
(38.6) |
% |
|||||||||||
Namenda ® |
10.7 |
97.8 |
(87.1) |
(89.1) |
% |
|||||||||||
Total Gastrointestinal (GI) |
449.8 |
453.2 |
(3.4) |
(0.8) |
% |
|||||||||||
Linzess® |
205.2 |
194.8 |
10.4 |
5.3 |
% |
|||||||||||
Zenpep® |
66.8 |
58.5 |
8.3 |
14.2 |
% |
|||||||||||
Carafate®/Sulcrate® |
54.1 |
59.2 |
(5.1) |
(8.6) |
% |
|||||||||||
Viberzi® |
48.9 |
42.9 |
6.0 |
14.0 |
% |
|||||||||||
Canasa®/Salofalk® |
38.8 |
47.0 |
(8.2) |
(17.4) |
% |
|||||||||||
Asacol®/Delzicol® |
27.9 |
42.8 |
(14.9) |
(34.8) |
% |
|||||||||||
Other GI |
8.1 |
8.0 |
0.1 |
1.3 |
% |
|||||||||||
Total Women's Health |
213.9 |
285.8 |
(71.9) |
(25.2) |
% |
|||||||||||
Lo Loestrin® |
143.8 |
126.5 |
17.3 |
13.7 |
% |
|||||||||||
Estrace®Cream |
14.7 |
101.5 |
(86.8) |
(85.5) |
% |
|||||||||||
Liletta® |
14.6 |
14.5 |
0.1 |
0.7 |
% |
|||||||||||
Minastrin®24 |
2.9 |
5.3 |
(2.4) |
(45.3) |
% |
|||||||||||
Other Women's Health |
37.9 |
38.0 |
(0.1) |
(0.3) |
% |
|||||||||||
Total Anti-Infectives |
78.8 |
66.6 |
12.2 |
18.3 |
% |
|||||||||||
Teflaro® |
30.0 |
29.2 |
0.8 |
2.7 |
% |
|||||||||||
Avycaz® |
24.6 |
18.5 |
6.1 |
33.0 |
% |
|||||||||||
Dalvance® |
17.3 |
13.0 |
4.3 |
33.1 |
% |
|||||||||||
Other Anti-Infectives |
6.9 |
5.9 |
1.0 |
16.9 |
% |
|||||||||||
Diversified Brands |
300.1 |
319.4 |
(19.3) |
(6.0) |
% |
|||||||||||
Bystolic®/Byvalson® |
151.7 |
157.5 |
(5.8) |
(3.7) |
% |
|||||||||||
Armour Thyroid |
53.4 |
51.3 |
2.1 |
4.1 |
% |
|||||||||||
Savella® |
23.6 |
23.9 |
(0.3) |
(1.3) |
% |
|||||||||||
Other Diversified Brands |
71.4 |
86.7 |
(15.3) |
(17.6) |
% |
|||||||||||
Other Revenues |
39.2 |
51.3 |
(12.1) |
(23.6) |
% |
|||||||||||
Net revenues |
$ |
1,397.9 |
$ |
1,525.3 |
$ |
(127.4) |
(8.4) |
% |
||||||||
Operating expenses: |
||||||||||||||||
Cost of sales(1) |
195.1 |
220.7 |
(25.6) |
(11.6) |
% |
|||||||||||
Selling and marketing |
211.1 |
245.8 |
(34.7) |
(14.1) |
% |
|||||||||||
General and administrative |
45.1 |
47.6 |
(2.5) |
(5.3) |
% |
|||||||||||
Segment contribution |
$ |
946.6 |
$ |
1,011.2 |
$ |
(64.6) |
(6.4) |
% |
||||||||
Segment margin |
67.7 |
% |
66.3 |
% |
1.4 |
% |
||||||||||
Segment gross margin(2) |
86.0 |
% |
85.5 |
% |
0.5 |
% |
||||||||||
(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. |
||||||||||||||||
Year Ended December 31, |
Change |
|||||||||||||||
2018 |
2017 |
Dollars |
% |
|||||||||||||
Total Central Nervous System (CNS) |
$ |
1,156.0 |
$ |
1,359.9 |
$ |
(203.9) |
(15.0) |
% |
||||||||
Vraylar® |
487.1 |
287.8 |
199.3 |
69.2 |
% |
|||||||||||
Viibryd®/Fetzima® |
342.4 |
333.2 |
9.2 |
2.8 |
% |
|||||||||||
Saphris® |
139.7 |
155.2 |
(15.5) |
(10.0) |
% |
|||||||||||
Namzaric® |
115.8 |
130.8 |
(15.0) |
(11.5) |
% |
|||||||||||
Namenda® |
71.0 |
452.9 |
(381.9) |
(84.3) |
% |
|||||||||||
Total Gastrointestinal (GI) |
1,723.7 |
1,695.0 |
28.7 |
1.7 |
% |
|||||||||||
Linzess® |
761.1 |
701.1 |
60.0 |
8.6 |
% |
|||||||||||
Zenpep® |
237.3 |
212.3 |
25.0 |
11.8 |
% |
|||||||||||
Carafate®/Sulcrate® |
217.8 |
235.8 |
(18.0) |
(7.6) |
% |
|||||||||||
Viberzi® |
176.5 |
156.6 |
19.9 |
12.7 |
% |
|||||||||||
Canasa®/Salofalk® |
169.2 |
162.7 |
6.5 |
4.0 |
% |
|||||||||||
Asacol®/Delzicol® |
130.8 |
195.5 |
(64.7) |
(33.1) |
% |
|||||||||||
Other GI |
31.0 |
31.0 |
(0.0) |
(0.0) |
% |
|||||||||||
Total Women's Health |
786.8 |
1,044.2 |
(257.4) |
(24.7) |
% |
|||||||||||
Lo Loestrin® |
527.7 |
459.3 |
68.4 |
14.9 |
% |
|||||||||||
Estrace®Cream |
49.0 |
366.6 |
(317.6) |
(86.6) |
% |
|||||||||||
Liletta® |
50.9 |
37.6 |
13.3 |
35.4 |
% |
|||||||||||
Minastrin®24 |
9.5 |
61.4 |
(51.9) |
(84.5) |
% |
|||||||||||
Other Women's Health |
149.7 |
119.3 |
30.4 |
25.5 |
% |
|||||||||||
Total Anti-Infectives |
304.4 |
257.3 |
47.1 |
18.3 |
% |
|||||||||||
Teflaro® |
128.0 |
121.9 |
6.1 |
5.0 |
% |
|||||||||||
Avycaz® |
94.6 |
61.2 |
33.4 |
54.6 |
% |
|||||||||||
Dalvance® |
56.1 |
53.9 |
2.2 |
4.1 |
% |
|||||||||||
Other Anti-Infectives |
25.7 |
20.3 |
5.4 |
26.6 |
% |
|||||||||||
Diversified Brands |
1,156.0 |
1,242.6 |
(86.6) |
(7.0) |
% |
|||||||||||
Bystolic®/Byvalson® |
583.8 |
612.2 |
(28.4) |
(4.6) |
% |
|||||||||||
Armour Thyroid |
198.8 |
169.1 |
29.7 |
17.6 |
% |
|||||||||||
Savella® |
85.0 |
98.2 |
(13.2) |
(13.4) |
% |
|||||||||||
Other Diversified Brands |
288.4 |
363.1 |
(74.7) |
(20.6) |
% |
|||||||||||
Other Revenues |
196.0 |
197.2 |
(1.2) |
(0.6) |
% |
|||||||||||
Net revenues |
$ |
5,322.9 |
$ |
5,796.2 |
$ |
(473.3) |
(8.2) |
% |
||||||||
Operating expenses: |
||||||||||||||||
Cost of sales(1) |
799.1 |
843.9 |
(44.8) |
(5.3) |
% |
|||||||||||
Selling and marketing |
924.6 |
1,084.1 |
(159.5) |
(14.7) |
% |
|||||||||||
General and administrative |
156.4 |
177.3 |
(20.9) |
(11.8) |
% |
|||||||||||
Segment contribution |
$ |
3,442.8 |
$ |
3,690.9 |
$ |
(248.1) |
(6.7) |
% |
||||||||
Segment margin |
64.7 |
% |
63.7 |
% |
1.0 |
% |
||||||||||
Segment gross margin(2) |
85.0 |
% |
85.4 |
% |
(0.4) |
% |
||||||||||
(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 International segment for the three and twelve months ended December 31, 2018 and 2017. |
||||||||||||||||
Table 11 |
||||||||||||||||
ALLERGAN PLC |
||||||||||||||||
International Product Revenue |
||||||||||||||||
(Unaudited; in millions) |
||||||||||||||||
Three Months Ended December 31, |
Change |
|||||||||||||||
2018 |
2017 |
Dollars |
% |
|||||||||||||
Total Eye Care |
$ |
308.2 |
$ |
342.7 |
$ |
(34.5) |
(10.1) |
% |
||||||||
Lumigan®/Ganfort® |
96.9 |
99.7 |
(2.8) |
(2.8) |
% |
|||||||||||
Alphagan®/Combigan® |
46.7 |
46.7 |
- |
0.0 |
% |
|||||||||||
Ozurdex® |
29.6 |
60.9 |
(31.3) |
(51.4) |
% |
|||||||||||
Restasis® |
16.6 |
14.6 |
2.0 |
13.7 |
% |
|||||||||||
Eye Drops |
71.7 |
73.8 |
(2.1) |
(2.8) |
% |
|||||||||||
Other Eye Care |
46.7 |
47.0 |
(0.3) |
(0.6) |
% |
|||||||||||
Total Medical Aesthetics |
396.0 |
389.3 |
6.7 |
1.7 |
% |
|||||||||||
Facial Aesthetics |
332.8 |
311.4 |
21.4 |
6.9 |
% |
|||||||||||
Botox®Cosmetics |
157.8 |
155.0 |
2.8 |
1.8 |
% |
|||||||||||
Juvederm®Collection |
174.0 |
154.7 |
19.3 |
12.5 |
% |
|||||||||||
Belkyra®(Kybella®) |
1.0 |
1.7 |
(0.7) |
(41.2) |
% |
|||||||||||
Plastic Surgery |
10.8 |
40.6 |
(29.8) |
(73.4) |
% |
|||||||||||
Breast Implants |
10.5 |
40.1 |
(29.6) |
(73.8) |
% |
|||||||||||
Other Plastic Surgery |
0.3 |
0.5 |
(0.2) |
(40.0) |
% |
|||||||||||
Regenerative Medicine |
3.9 |
5.8 |
(1.9) |
(32.8) |
% |
|||||||||||
Alloderm® |
2.5 |
2.5 |
- |
0.0 |
% |
|||||||||||
Other Regenerative Medicine |
1.4 |
3.3 |
(1.9) |
(57.6) |
% |
|||||||||||
Body Contouring |
44.9 |
27.0 |
17.9 |
66.3 |
% |
|||||||||||
Coolsculpting®Systems & Add On Applicators |
21.5 |
11.7 |
9.8 |
83.8 |
% |
|||||||||||
Coolsculpting®Consumables |
23.4 |
15.3 |
8.1 |
52.9 |
% |
|||||||||||
Skin Care |
3.6 |
4.5 |
(0.9) |
(20.0) |
% |
|||||||||||
Botox® Therapeutics and Other |
150.1 |
160.6 |
(10.5) |
(6.5) |
% |
|||||||||||
Botox®Therapeutics |
96.7 |
96.9 |
(0.2) |
(0.2) |
% |
|||||||||||
Asacol®/Delzicol® |
10.7 |
13.4 |
(2.7) |
(20.1) |
% |
|||||||||||
Constella® |
6.4 |
5.8 |
0.6 |
10.3 |
% |
|||||||||||
Other Products |
36.3 |
44.5 |
(8.2) |
(18.4) |
% |
|||||||||||
Other Revenues |
15.9 |
23.3 |
(7.4) |
(31.8) |
% |
|||||||||||
Net revenues |
$ |
870.2 |
$ |
915.9 |
$ |
(45.7) |
(5.0) |
% |
||||||||
Operating expenses: |
||||||||||||||||
Cost of sales(1) |
146.1 |
137.1 |
9.0 |
6.6 |
% |
|||||||||||
Selling and marketing |
230.8 |
240.6 |
(9.8) |
(4.1) |
% |
|||||||||||
General and administrative |
41.3 |
34.1 |
7.2 |
21.1 |
% |
|||||||||||
Segment contribution |
$ |
452.0 |
$ |
504.1 |
$ |
(52.1) |
(10.3) |
% |
||||||||
Segment margin |
51.9 |
% |
55.0 |
% |
(3.1) |
% |
||||||||||
Segment gross margin(2) |
83.2 |
% |
85.0 |
% |
(1.8) |
% |
||||||||||
(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. |
||||||||||||||||
Year Ended December 31, |
Change |
|||||||||||||||
2018 |
2017 |
Dollars |
% |
|||||||||||||
Total Eye Care |
$ |
1,294.6 |
$ |
1,282.1 |
$ |
12.5 |
1.0 |
% |
||||||||
Lumigan®/Ganfort® |
392.6 |
371.5 |
21.1 |
5.7 |
% |
|||||||||||
Alphagan®/Combigan® |
176.0 |
175.1 |
0.9 |
0.5 |
% |
|||||||||||
Ozurdex® |
187.7 |
213.4 |
(25.7) |
(12.0) |
% |
|||||||||||
Restasis® |
64.5 |
61.3 |
3.2 |
5.2 |
% |
|||||||||||
Eye Drops |
279.7 |
281.0 |
(1.3) |
(0.5) |
% |
|||||||||||
Other Eye Care |
194.1 |
179.8 |
14.3 |
8.0 |
% |
|||||||||||
Total Medical Aesthetics |
1,533.3 |
1,366.6 |
166.7 |
12.2 |
% |
|||||||||||
Facial Aesthetics |
1,262.3 |
1,104.5 |
157.8 |
14.3 |
% |
|||||||||||
Botox®Cosmetics |
641.2 |
557.0 |
84.2 |
15.1 |
% |
|||||||||||
Juvederm®Collection |
614.8 |
540.7 |
74.1 |
13.7 |
% |
|||||||||||
Belkyra®(Kybella®) |
6.3 |
6.8 |
(0.5) |
(7.4) |
% |
|||||||||||
Plastic Surgery |
131.5 |
158.6 |
(27.1) |
(17.1) |
% |
|||||||||||
Breast Implants |
130.1 |
156.9 |
(26.8) |
(17.1) |
% |
|||||||||||
Other Plastic Surgery |
1.4 |
1.7 |
(0.3) |
(17.6) |
% |
|||||||||||
Regenerative Medicine |
16.8 |
16.5 |
0.3 |
1.8 |
% |
|||||||||||
Alloderm® |
8.0 |
7.5 |
0.5 |
6.7 |
% |
|||||||||||
Other Regenerative Medicine |
8.8 |
9.0 |
(0.2) |
(2.2) |
% |
|||||||||||
Body Contouring |
107.5 |
73.7 |
33.8 |
45.9 |
% |
|||||||||||
Coolsculpting®Systems & Add On Applicators |
43.3 |
32.1 |
11.2 |
34.9 |
% |
|||||||||||
Coolsculpting®Consumables |
64.2 |
41.6 |
22.6 |
54.3 |
% |
|||||||||||
Skin Care |
15.2 |
13.3 |
1.9 |
14.3 |
% |
|||||||||||
Botox® Therapeutics and Other |
611.5 |
587.4 |
24.1 |
4.1 |
% |
|||||||||||
Botox®Therapeutics |
390.4 |
357.5 |
32.9 |
9.2 |
% |
|||||||||||
Asacol®/Delzicol® |
45.7 |
50.2 |
(4.5) |
(9.0) |
% |
|||||||||||
Constella® |
24.1 |
21.9 |
2.2 |
10.0 |
% |
|||||||||||
Other Products |
151.3 |
157.8 |
(6.5) |
(4.1) |
% |
|||||||||||
Other Revenues |
65.3 |
83.4 |
(18.1) |
(21.7) |
% |
|||||||||||
Net revenues |
$ |
3,504.7 |
$ |
3,319.5 |
$ |
185.2 |
5.6 |
% |
||||||||
Operating expenses: |
||||||||||||||||
Cost of sales(1) |
537.1 |
478.7 |
58.4 |
12.2 |
% |
|||||||||||
Selling and marketing |
928.7 |
913.8 |
14.9 |
1.6 |
% |
|||||||||||
General and administrative |
141.7 |
120.6 |
21.1 |
17.5 |
% |
|||||||||||
Segment contribution |
1,897.2 |
1,806.4 |
90.8 |
5.0 |
% |
|||||||||||
Segment margin |
54.1 |
% |
54.4 |
% |
(0.3) |
% |
||||||||||
Segment gross margin(2) |
84.7 |
% |
85.6 |
% |
(0.9) |
% |
||||||||||
(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 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 March 31, 2019 and twelve months ending December 31, 2019: |
||||||||||||||
Table 12 |
||||||||||||||
Three months ending |
Twelve months ending December |
|||||||||||||
(in millions, except per share information) |
LOW |
HIGH |
LOW |
|||||||||||
GAAP (loss) /income from continuing operations attributable to shareholders |
$ |
(130.0) |
$ |
(65.0) |
$ |
380.0 |
||||||||
Adjusted for: |
||||||||||||||
Amortization |
1,400.0 |
1,400.0 |
5,600.0 |
|||||||||||
Acquisition, divestiture, licensing and other non-recurring charges |
46.0 |
46.0 |
135.0 |
|||||||||||
Accretion and fair-value adjustments to contingent consideration |
4.0 |
4.0 |
15.0 |
|||||||||||
Income taxes on items above and other discrete income tax adjustments |
(183.0) |
(183.0) |
(700.0) |
|||||||||||
Non-GAAP performance net income attributable to shareholders |
1,137.0 |
1,202.0 |
5,430.0 |
|||||||||||
Diluted earnings per share |
||||||||||||||
Diluted (loss) / income per share from continuing operations attributable to shareholders- GAAP |
$ |
(0.39) |
$ |
(0.20) |
$ |
1.14 |
||||||||
Non-GAAP performance diluted net income per share attributable to shareholders |
$ |
3.40 |
$ |
3.60 |
$ |
16.36 |
||||||||
Basic weighted average ordinary shares outstanding |
331.0 |
331.0 |
330.0 |
|||||||||||
Effect of dilutive securities: |
||||||||||||||
Dilutive shares |
3.0 |
3.0 |
2.0 |
|||||||||||
Diluted weighted average ordinary shares outstanding |
334.0 |
334.0 |
332.0 |
|||||||||||
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