News

August 06, 2019
Allergan Reports Second Quarter 2019 Financial Results
- Q2 2019 GAAP Net Revenues of $4.09 Billion -
- Q2 2019 GAAP Loss Per Share of $5.37; Non-GAAP Performance Net Income Per Share of $4.38 -
- Q2 2019 GAAP Operating Loss of $1.26 Billion; Non-GAAP Operating Income of $1.85 Billion -
- Q2 2019 GAAP Net Revenue Driven by Growth in Top Promoted Products Including BOTOX®, VRAYLAR®, JUVÉDERM® Collection, Lo LOESTRIN® and OZURDEX® -
- Q2 2019 GAAP Revenues and Expenses Impacted by Voluntary Global Recall of BIOCELL® Textured Breast Implants -
- Continues to Advance R&D Pipeline on Key Programs Including FDA Approval of VRAYLAR® (Cariprazine) for Bipolar Depression, FDA Clearance of CoolTone™ for Muscle Stimulation; Ubrogepant for Migraine and Bimatoprost SR for Glaucoma NDAs Under FDA Review -
- Raises Guidance for Full-Year 2019 Net Revenue; Reaffirms Guidance for Full-Year 2019 Performance Net Income Per Share -

DUBLIN, Aug. 6, 2019/PRNewswire/ -- Allergan plc (NYSE: AGN) today reported its second quarter 2019 financial results including GAAP net revenues of $4.09 billion, a 0.8 percent decrease from the prior year quarter. Excluding foreign exchange impact, second quarter 2019 non-GAAP net revenues increased 1.2 percent from the prior year quarter.

Allergan plc logo

SECOND QUARTER 2019 FINANCIAL RESULTS

(unaudited; $ in millions, except per share
amounts)

 

Q2 '19

   

Q2 '18

   

Q2 '19 v

Q2 '18

   

Six
Months
Ended
June 30,
2019

   

Six
Months
Ended
June 30,
2018

   

2019 v
2018

 

Total Net Revenues

 

$

4,090.1

   

$

4,124.2

     

(0.8)

%

 

$

7,687.2

   

$

7,796.3

     

(1.4)

%

                                                 

Operating (Loss)

 

$

(1,262.9)

   

$

(467.0)

     

(170.4)

%

 

$

(3,572.1)

   

$

(1,121.0)

     

(218.7)

%

Diluted EPS

 

$

(5.37)

   

$

(1.39)

     

(286.3)

%

 

$

(12.63)

   

$

(2.39)

     

(428.5)

%

SG&A Expense

 

$

1,197.5

   

$

1,187.5

     

0.8

%

 

$

2,309.8

   

$

2,283.4

     

1.2

%

R&D Expense

 

$

450.0

   

$

689.2

     

(34.7)

%

 

$

885.0

   

$

1,163.9

     

(24.0)

%

Tax Rate

   

(20.8)

%

   

1.1

%

   

(21.9)

%

   

(5.9)

%

   

47.7

%

   

(53.6)

%

                                                 

Non-GAAP Net Revenues

 

$

4,090.1

   

$

4,099.2

     

(0.2)

%

 

$

7,687.2

   

$

7,771.3

     

(1.1)

%

Non-GAAP Operating Income

 

$

1,850.3

   

$

1,973.8

     

(6.3)

%

 

$

3,475.9

   

$

3,732.9

     

(6.9)

%

Non-GAAP Performance Net Income Per Share

 

$

4.38

   

$

4.42

     

(0.9)

%

 

$

8.17

   

$

8.16

     

0.1

%

Non-GAAP Adjusted EBITDA

 

$

1,952.4

   

$

2,086.2

     

(6.4)

%

 

$

3,689.4

   

$

3,955.9

     

(6.7)

%

Non-GAAP SG&A Expense

 

$

1,162.8

   

$

1,134.4

     

2.5

%

 

$

2,259.0

   

$

2,183.1

     

3.5

%

Non-GAAP R&D Expense

 

$

447.0

   

$

388.9

     

14.9

%

 

$

844.9

   

$

744.7

     

13.5

%

Non-GAAP Tax Rate

   

12.8

%

   

14.3

%

   

(1.5)

%

   

12.8

%

   

14.2

%

   

(1.4)

%

                                                 
 

Executive Commentary

"In the second quarter of 2019, Allergan delivered steady growth in our key products including BOTOX®, VRAYLAR®, JUVÉDERM®, Lo LOESTRIN® and OZURDEX® while we continued to advance our pipeline, highlighted by the FDA's approval of VRAYLAR® (Cariprazine) for Bipolar Depression and the NDA acceptance for Bimatoprost SR for Glaucoma," said Brent Saunders, Chairman and CEO of Allergan. "Our second quarter results demonstrate the continued momentum in our business and our focus on customers. Thank you to the Allergan colleagues around the world who continue to deliver our products to the patients who need them."

Second Quarter 2019 Results

GAAP operating loss in the second quarter of 2019 was $1.26 billion, including the impact of impairments. Non-GAAP operating income in the second quarter of 2019 was $1.85 billion, a decrease of 6.3 percent versus the prior year quarter, partially impacted by lower revenues due to divestitures, products that lost exclusivity and declines in textured breast implants due to a global recall. GAAP cash flow from operations for the second quarter of 2019 totaled $1.41 billion.

Operating Expenses

Total GAAP Selling, General and Administrative (SG&A) Expense was $1.20 billion for the second quarter of 2019, compared to $1.19 billion in the prior year quarter. Total non-GAAP SG&A expense was $1.16 billion for the second quarter of 2019, an increase of 2.5 percent from the prior year quarter, primarily related to an increase in spending to support key products and new product launches. GAAP R&D investment for the second quarter of 2019 was $450.0 million, compared to $689.2 million in the second quarter of 2018. Non-GAAP R&D investment for the second quarter of 2019 was $447.0 million, an increase of 14.9 percent compared to the prior year quarter, due to increased direct project spend to support pipeline advancement and new product launches.

Amortization, Tax and Capitalization

Amortization expense for the second quarter of 2019 was $1.40 billion, compared to $1.70 billion in the second quarter of 2018. The Company's GAAP tax rate was -20.8 percent in the second quarter of 2019. The Company's non-GAAP adjusted tax rate was 12.8 percent in the second quarter of 2019. As of June 30, 2019Allergan had cash and marketable securities of $1.97 billion and outstanding indebtedness of $22.7 billion.

Asset Sales & Impairments, Net and In-Process R&D Impairments

Allergan recorded total pre-tax impairment charges of $1.65 billion in the three months ended June 30, 2019. This amount includes a goodwill impairment of $1.09 billion in the General Medicine Reporting unit, primarily due to delays in clinical studies as well as a reduction in the expected value of certain R&D projects. 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.

SECOND QUARTER 2019 BUSINESS SEGMENT RESULTS

U.S. Specialized Therapeutics

U.S. Specialized Therapeutics net revenues were $1.79 billion in the second quarter of 2019, a decrease of 2.3 percent versus the prior year quarter. Demand growth in BOTOX® and JUVÉDERM® Collection was offset by a decline in sales of CoolSculpting® and breast implants compared to the prior year quarter, lower RESTASIS® revenues and the divestiture of the Company's Medical Dermatology business on September 20, 2018. Segment gross margin for the second quarter of 2019 was 91.5 percent. Segment contribution for the second quarter of 2019 was $1.23 billion.

Medical Aesthetics

  • Facial Aesthetics
    • BOTOX® Cosmetic net revenues in the second quarter of 2019 were $252.4 million, an increase of 6.7 percent from the prior year quarter.
    • JUVÉDERM® Collection (defined as JUVÉDERM®, VOLUMA® and other fillers) net revenues in the second quarter of 2019 were $156.6 million, an increase of 12.0 percent versus the prior year quarter.
  • Regenerative Medicine
    • ALLODERM® net revenues in the second quarter of 2019 were $101.2 million, a decrease of 5.5 percent versus the prior year quarter.
  • Body Contouring
    • CoolSculpting® net revenues (including both CoolSculpting® Systems/Applicators and Consumables) in the second quarter of 2019 were $78.9 million, a decrease of 27.1 percent from the prior year quarter.

Neurosciences & Urology

  • BOTOX® Therapeutic net revenues in the second quarter of 2019 were $447.0 million, an increase of 5.9 percent versus the prior year quarter.

Eye Care

  • RESTASIS® net revenues in the second quarter of 2019 were $310.9 million, a decrease of 2.3 percent versus the prior year quarter.
  • ALPHAGAN®/COMBIGAN® net revenues in the second quarter of 2019 were $91.6 million, a decrease of 6.6 percent versus the prior year quarter.
  • OZURDEX® net revenues in the second quarter of 2019 were $29.9 million, an increase of 8.3 percent versus the prior year quarter.

U.S. General Medicine

U.S. General Medicine net revenues in the second quarter of 2019 were $1.46 billion, an increase of 10.3 percent versus the prior year quarter, primarily due to growth in VRAYLAR®, VIIBRYD® and Lo LOESTRIN®, partially offset by lower revenues from products that lost exclusivity. Segment gross margin for the second quarter of 2019 was 84.1 percent. Segment contribution for the second quarter of 2019 was $943.9 million.

Central Nervous System

  • VRAYLAR® net revenues were $196.1 million in the second quarter of 2019, an increase of 71.7 percent from the prior year quarter.
  • VIIBRYD®/FETZIMA® net revenues in the second quarter of 2019 were $107.8 million, an increase of 24.3 percent from the prior year quarter.

Gastrointestinal, Women's Health & Diversified Brands

  • LINZESS® net revenues in the second quarter of 2019 were $196.0 million, an increase of 2.2 percent versus the prior year quarter.
  • Lo LOESTRIN® net revenues in the second quarter of 2019 were $145.5 million, an increase of 13.8 percent versus the prior year quarter.
  • BYSTOLIC®/BYVALSON® net revenues in the second quarter of 2019 were $150.5 million, an increase of 1.6 percent from the prior year quarter.

International

International net revenues in the second quarter of 2019 were $847.7 million, a decrease of 4.3 percent versus the prior year quarter excluding foreign exchange impact, driven by growth in Facial Aesthetics and OZURDEX® as well as declines in textured breast implants and LUMIGAN®/GANFORT®. Segment gross margin for the second quarter of 2019 was 82.8 percent. Segment contribution was $420.1 million.

Facial Aesthetics

  • BOTOX® Cosmetic net revenues in the second quarter of 2019 were $175.8 million, an increase of 10.7 percent versus the prior year quarter excluding foreign exchange impact.
  • JUVÉDERM® Collection net revenues in the second quarter of 2019 were $172.7 million, an increase of 17.8 percent versus the prior year quarter excluding foreign exchange impact.

Eye Care

  • LUMIGAN®/GANFORT® net revenues in the second quarter of 2019 were $90.4 million, a decrease of 4.3 percent versus the prior year quarter excluding foreign exchange impact.
  • OZURDEX® net revenues in the second quarter of 2019 were $81.0 million, an increase of 28.1 percent versus the prior year quarter excluding foreign exchange impact.

Botox® Therapeutic

  • BOTOX® Therapeutic net revenues in the second quarter of 2019 were $98.8 million, an increase of 1.2 percent versus the prior year quarter excluding foreign exchange impact.

PIPELINE UPDATE

Allergan R&D continues to advance its pipeline. During the second quarter of 2019, the Company's key late-stage clinical developments included:

  • Allergan and Gedeon Richter announced that the U.S. Food and Drug Administration (FDA) approved the expanded use of VRAYLAR® (cariprazine) to treat depressive episodes associated with bipolar I disorder (bipolar depression) in adults. Additionally, VRAYLAR® (cariprazine) is approved for the treatment of schizophrenia in adults and for the acute treatment of adult patients with manic or mixed episodes associated with bipolar I disorder.
  • The FDA approved Allergan's supplemental Biologics License Application (sBLA) to expand the BOTOX® (onabotulinumtoxinA) label for the treatment of pediatric patients ages two years and older with upper limb spasticity. Additionally, the FDA is reviewing Allergan's sBLA for the use of BOTOX® to treat pediatric patients with lower limb spasticity, with a decision expected by the fourth quarter of 2019.
  • Allergan received FDA clearance for CoolTone™ to strengthen, tone and firm the muscles of the abdomen, buttocks and thighs. CoolTone™ is a body contouring device that uses magnetic muscle stimulation, or MMS technology, to penetrate into the muscle layers and induce involuntary muscle contractions. Launch is expected in the second half of 2019.
  • Allergan announced that the FDA accepted the Company's New Drug Application (NDA) for Bimatoprost Sustained-Release (SR), a biodegradable implant for the reduction of intraocular pressure in patients with open-angle glaucoma or ocular hypertension. FDA action on the NDA and launch are expected in the first half of 2020.
  • The European Medicines Agency (EMA) has validated the Marketing Authorisation Application (MAA) for abicipar, Allergan and Molecular Partners' novel DARPin® therapy for the treatment of neovascular age-related macular degeneration. If approved, abicipar is expected to be the first anti-VEGF therapy to sustain vision gains on a true fixed 12-week dosing interval. An EMA decision may be received in the second half of 2020. The U.S. launch, following FDA filing and review, is expected mid-2020.

In addition to second quarter 2019 pipeline developments and the expected launches of Bimatoprost SR, CoolTone™ and abicipar listed above, Allergan anticipates a regulatory decision from the FDA in December 2019 for the Company's NDA for ubrogepant, an oral CGRP receptor antagonist for the acute treatment of migraine, with launch expected in the first half of 2020.

OTHER DEVELOPMENTS

On June 25, 2019AbbVie Inc. and Allergan plc announced that the companies have entered into a definitive transaction agreement under which AbbVie will acquire Allergan in a cash and stock transaction for a transaction equity value of approximately $63 billion, based on the closing price of AbbVie's common stock of $78.45 on June 24, 2019.

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

~$15.125 - $15.425
billion

~$15.100 - $15.400
billion

 

~$15.425 - $15.625
billion

~$15.400 - $15.600
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

 

~$4.5 - $4.6 billion

~$4.4 - $4.5 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

~ 1.0%

13.0% - 13.5%

 

~ (5.0)%

~13.0%

Net Income / (Loss) Per Share1

>($5.70)

> $16.55

 

> ($12.03)

> $16.55

Average 2019 Share Count2

~ 329.0 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.

           

(1) GAAP represents EPS for ordinary shareholders. GAAP income per share includes the impact of amortization of approximately $5.7 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.

 

ADDITIONAL SECOND QUARTER DETAILS

Due to the proposed acquisition of Allergan by AbbVieAllergan is not hosting a conference call to discuss its second quarter results. For additional materials related to Allergan's second quarter results, please visit Allergan's Investor Relations website at https://www.allergan.com/investors/events-presentations.

Allergan Contacts:

 

Investors:

 

Manisha Narasimhan, PhD        

(862) 261-7162

Christine Chiou                         

(862) 261-7396

   

Media:

 

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; risks related to the proposed transaction between AbbVie and Allergan, such as, but not limited to, failure to complete the possible transaction, failure to realize the expected benefits of the possible transaction, and general economic and business conditions affecting the combined company following the consummation of the possible transaction;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 and Allergan's Quarterly Report on Form 10-Q for the period ended March 31, 2019. Except as expressly required by law, Allergan disclaims any intent or obligation to update these forward-looking statements.

Statements Required by the Irish Takeover Rules

To the extent that the earnings guidance contained, referred to or summarized in this press release constitute a profit forecast for the purposes of Rule 28 of the Irish Takeover Panel Act, Takeover Rules, 2013, such guidance will (unless the Irish Takeover Panel consents otherwise) be reported on in accordance with that rule in the proxy statement. Except as described in the previous sentence, no statement in this press release is intended to constitute a profit forecast for any period, nor should any statements be interpreted to mean that earnings or earnings per share will necessarily be greater or lesser than those for the relevant preceding financial periods for Allergan. No statement in this press release constitutes an asset valuation.

The directors of Allergan accept responsibility for the information contained in this press release. To the best of the knowledge and belief of the directors of Allergan (who have taken all reasonable care to ensure that such is the case), the information contained in this press release is in accordance with the facts and does not omit anything likely to affect the import of such information.

Any holder of 1% or more of any class of relevant securities of Allergan may have disclosure obligations under Rule 8.3 of the Irish Takeover Panel Act, 1997, Takeover Rules 2013.

 

 

 

The following presents Allergan plc's statement of operations for the three and six months ended June 30, 2019 and 2018:

Table 1

     

ALLERGAN PLC

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in millions, except per share amounts)

                                     
   

Three Months Ended

   

Six Months Ended

     
   

June 30

   

June 30

     
   

2019

   

2018

   

2019

   

2018

     

Net revenues

 

$

4,090.1

   

$

4,124.2

   

$

7,687.2

   

$

7,796.3

     
                                     

Operating expenses:

                                       

Cost of sales (excludes amortization and impairment of acquired
intangibles including product rights)

   

652.3

     

481.8

     

1,150.1

     

1,004.6

     

Research and development

   

450.0

     

689.2

     

885.0

     

1,163.9

     

Selling, general and administrative

   

1,197.5

     

1,187.5

     

2,309.8

     

2,283.4

     

Amortization

   

1,402.0

     

1,697.1

     

2,801.4

     

3,394.7

     

In-process research and development impairments

   

436.0

     

276.0

     

436.0

     

798.0

     

Goodwill and other asset impairments / sales, net

   

1,215.2

     

259.6

     

3,677.0

     

272.7

     

Total operating expenses

   

5,353.0

     

4,591.2

     

11,259.3

     

8,917.3

     

Operating (loss)

   

(1,262.9)

     

(467.0)

     

(3,572.1)

     

(1,121.0)

     
                                     

Non-operating income (expense):

                                   

Interest income

   

9.7

     

6.3

     

31.0

     

23.6

     

Interest (expense)

   

(195.4)

     

(230.0)

     

(397.2)

     

(480.6)

     

Other income (expense), net

   

(4.7)

     

215.4

     

9.1

     

136.6

     

Total other income (expense), net

   

(190.4)

     

(8.3)

     

(357.1)

     

(320.4)

     

(Loss) before income taxes and noncontrolling interest

   

(1,453.3)

     

(475.3)

     

(3,929.2)

     

(1,441.4)

     

(Benefit) for income taxes

   

301.6

     

(5.2)

     

233.0

     

(687.4)

     

Net (loss)

   

(1,754.9)

     

(470.1)

     

(4,162.2)

     

(754.0)

     

(Income) attributable to noncontrolling interest

   

(4.1)

     

(2.4)

     

(4.8)

     

(4.6)

     

Net (loss) attributable to shareholders

   

(1,759.0)

     

(472.5)

     

(4,167.0)

     

(758.6)

     

Dividends on preferred shares

   

-

     

-

     

-

     

46.4

     

Net (loss) attributable to ordinary shareholders

 

$

(1,759.0)

   

$

(472.5)

   

$

(4,167.0)

   

$

(805.0)

     
                                     

(Loss) per share attributable to ordinary shareholders:

                                   

Net (loss) per share - basic

 

$

(5.37)

   

$

(1.39)

   

$

(12.63)

   

$

(2.39)

     

Net (loss) per share - diluted

   

(5.37)

     

(1.39)

     

(12.63)

     

(2.39)

     
                                     

Weighted average shares outstanding:

                                   

Basic

   

327.8

     

339.1

     

329.9

     

336.9

     

Diluted

   

327.8

     

339.1

     

329.9

     

336.9

     
                                         
 

 

 

The following table details Allergan plc's product revenue for significant promoted products globally, within the U.S., and international for the three and six months ended June 30, 2019 and 2018.

 

Table 2

 

ALLERGAN PLC

 

NET REVENUES TOP GLOBAL PRODUCTS

 

(Unaudited; in millions)

 
                                                                                                 
   

Three Months Ended June 30, 2019

   

Three Months Ended June 30, 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®

 

$

699.4

   

$

-

   

$

274.6

   

$

-

   

$

974.0

   

$

658.5

   

$

-

   

$

276.0

   

$

-

   

$

934.5

   

$

39.5

     

4.2

%

Restasis®

   

310.9

     

-

     

11.9

     

-

     

322.8

     

318.2

     

-

     

16.0

     

-

     

334.2

     

(11.4)

     

(3.4)

%

Juvederm® Collection

   

156.6

     

-

     

172.7

     

-

     

329.3

     

139.8

     

-

     

156.1

     

-

     

295.9

     

33.4

     

11.3

%

Lumigan®/Ganfort®

   

62.1

     

-

     

90.4

     

-

     

152.5

     

73.0

     

-

     

100.5

     

-

     

173.5

     

(21.0)

     

(12.1)

%

Linzess®/Constella®

   

-

     

196.0

     

4.8

     

-

     

200.8

     

-

     

191.8

     

6.4

     

-

     

198.2

     

2.6

     

1.3

%

Bystolic® /Byvalson®

   

-

     

150.5

     

0.5

     

-

     

151.0

     

-

     

148.1

     

0.6

     

-

     

148.7

     

2.3

     

1.5

%

Alphagan®/Combigan®

   

91.6

     

-

     

40.9

     

-

     

132.5

     

98.1

     

-

     

44.6

     

-

     

142.7

     

(10.2)

     

(7.1)

%

Lo Loestrin®

   

-

     

145.5

     

-

     

-

     

145.5

     

-

     

127.8

     

-

     

-

     

127.8

     

17.7

     

13.8

%

Breast Implants

   

67.6

     

-

     

(31.4)

     

-

     

36.2

     

75.9

     

-

     

39.9

     

-

     

115.8

     

(79.6)

     

(68.7)

%

Viibryd®/Fetzima®

   

-

     

107.8

     

2.7

     

-

     

110.5

     

-

     

86.7

     

1.6

     

-

     

88.3

     

22.2

     

25.1

%

Eye Drops

   

57.8

     

-

     

57.3

     

-

     

115.1

     

53.8

     

-

     

72.4

     

-

     

126.2

     

(11.1)

     

(8.8)

%

Asacol®/Delzicol®

   

-

     

31.6

     

9.7

     

-

     

41.3

     

-

     

32.6

     

12.4

     

-

     

45.0

     

(3.7)

     

(8.2)

%

Coolsculpting® Consumables

   

60.7

     

-

     

20.3

     

-

     

81.0

     

71.9

     

-

     

18.5

     

-

     

90.4

     

(9.4)

     

(10.4)

%

Coolsculpting® Systems & Add On
Applicators

   

18.2

     

-

     

11.6

     

-

     

29.8

     

36.4

     

-

     

12.4

     

-

     

48.8

     

(19.0)

     

(38.9)

%

Ozurdex ®

   

29.9

     

-

     

81.0

     

-

     

110.9

     

27.6

     

-

     

67.9

     

-

     

95.5

     

15.4

     

16.1

%

Carafate ® /Sulcrate ®

   

-

     

56.2

     

0.7

     

-

     

56.9

     

-

     

54.3

     

0.7

     

-

     

55.0

     

1.9

     

3.5

%

Aczone®

   

1.8

     

-

     

-

     

-

     

1.8

     

21.1

     

-

     

0.1

     

-

     

21.2

     

(19.4)

     

(91.5)

%

Zenpep®

   

-

     

70.0

     

-

     

-

     

70.0

     

-

     

55.5

     

-

     

-

     

55.5

     

14.5

     

26.1

%

Canasa®/Salofalk®

   

-

     

8.0

     

4.1

     

-

     

12.1

     

-

     

45.0

     

4.5

     

-

     

49.5

     

(37.4)

     

(75.6)

%

Vraylar®

   

-

     

196.1

     

-

     

-

     

196.1

     

-

     

114.2

     

-

     

-

     

114.2

     

81.9

     

71.7

%

Saphris®

   

-

     

32.6

     

-

     

-

     

32.6

     

-

     

33.8

     

-

     

-

     

33.8

     

(1.2)

     

(3.6)

%

Viberzi®

   

-

     

50.8

     

0.3

     

-

     

51.1

     

-

     

44.9

     

0.3

     

-

     

45.2

     

5.9

     

13.1

%

Teflaro®

   

-

     

37.0

     

-

     

-

     

37.0

     

-

     

32.4

     

0.6

     

-

     

33.0

     

4.0

     

12.1

%

Namzaric®

   

-

     

22.6

     

-

     

-

     

22.6

     

-

     

31.8

     

-

     

-

     

31.8

     

(9.2)

     

(28.9)

%

Rapaflo®

   

4.5

     

-

     

1.4

     

-

     

5.9

     

19.7

     

-

     

1.6

     

-

     

21.3

     

(15.4)

     

(72.3)

%

Skin Care

   

42.6

     

-

     

3.7

     

-

     

46.3

     

34.3

     

-

     

4.1

     

-

     

38.4

     

7.9

     

20.6

%

Kybella® /Belkyra®

   

8.5

     

-

     

0.6

     

-

     

9.1

     

11.2

     

-

     

2.3

     

-

     

13.5

     

(4.4)

     

(32.6)

%

Alloderm®

   

101.2

     

-

     

2.2

     

-

     

103.4

     

107.1

     

-

     

2.3

     

-

     

109.4

     

(6.0)

     

(5.5)

%

Dalvance®

   

-

     

20.3

     

2.2

     

-

     

22.5

     

-

     

17.7

     

1.3

     

-

     

19.0

     

3.5

     

18.4

%

Avycaz®

   

-

     

26.7

     

-

     

-

     

26.7

     

-

     

23.5

     

-

     

-

     

23.5

     

3.2

     

13.6

%

Liletta®

   

-

     

21.9

     

-

     

-

     

21.9

     

-

     

15.5

     

-

     

-

     

15.5

     

6.4

     

41.3

%

Namenda®

   

-

     

6.1

     

-

     

-

     

6.1

     

-

     

3.4

     

-

     

-

     

3.4

     

2.7

     

79.4

%

Armour Thyroid

   

-

     

56.7

     

-

     

-

     

56.7

     

-

     

49.2

     

-

     

-

     

49.2

     

7.5

     

15.2

%

Savella®

   

-

     

22.3

     

-

     

-

     

22.3

     

-

     

19.1

     

-

     

-

     

19.1

     

3.2

     

16.8

%

Other Products Revenues

   

71.7

     

197.0

     

85.5

     

1.6

     

355.8

     

80.1

     

192.7

     

105.8

     

28.6

     

407.2

     

(51.4)

     

(12.6)

%

Total Net Revenues

 

$

1,785.1

   

$

1,455.7

   

$

847.7

   

$

1.6

     

4,090.1

   

$

1,826.7

   

$

1,320.0

   

$

948.9

   

$

28.6

     

4,124.2

   

$

(34.1)

     

(0.8)

%

   
                                                                                                 
                                                                                                 

1Botox® is comprised of the following:

                                                                                               

Botox® Therapeutics

   

447.0

     

-

     

98.8

     

-

     

545.8

     

422.0

     

-

     

104.6

     

-

     

526.6

     

19.2

     

3.6

%

Botox®  Cosmetics

   

252.4

     

-

     

175.8

     

-

     

428.2

     

236.5

     

-

     

171.4

     

-

     

407.9

     

20.3

     

5.0

%

                                                                                                 
                                                                                                 
                                                                                                 
                                                                                                 
                                                                                                 
                                                                                                 
                                                                                                 
                                                                                                 
                                                                                                 
                                                                                                 
                                                                                                 
                                                                                                 
   

Six Months Ended June 30, 2019

   

Six Months Ended June 30, 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®

 

$

1,326.5

   

$

-

   

$

515.9

   

$

-

   

$

1,842.4

   

$

1,231.0

   

$

-

   

$

520.8

   

$

-

   

$

1,751.8

   

$

90.6

     

5.2

%

Restasis®

   

542.6

     

-

     

22.3

     

-

     

564.9

     

574.0

     

-

     

34.3

     

-

     

608.3

     

(43.4)

     

(7.1)

%

Juvederm® Collection

   

286.3

     

-

     

330.5

     

-

     

616.8

     

262.6

     

-

     

302.2

     

-

     

564.8

     

52.0

     

9.2

%

Lumigan®/Ganfort®

   

119.8

     

-

     

175.5

     

-

     

295.3

     

139.8

     

-

     

200.9

     

-

     

340.7

     

(45.4)

     

(13.3)

%

Linzess®/Constella®

   

-

     

357.3

     

10.3

     

-

     

367.6

     

-

     

351.1

     

12.0

     

-

     

363.1

     

4.5

     

1.2

%

Bystolic® /Byvalson®

   

-

     

278.8

     

0.9

     

-

     

279.7

     

-

     

280.9

     

1.1

     

-

     

282.0

     

(2.3)

     

(0.8)

%

Alphagan®/Combigan®

   

174.6

     

-

     

78.5

     

-

     

253.1

     

182.3

     

-

     

88.8

     

-

     

271.1

     

(18.0)

     

(6.6)

%

Lo Loestrin®

   

-

     

271.3

     

-

     

-

     

271.3

     

-

     

242.4

     

-

     

-

     

242.4

     

28.9

     

11.9

%

Breast Implants

   

128.8

     

-

     

(20.2)

     

-

     

108.6

     

136.6

     

-

     

84.0

     

-

     

220.6

     

(112.0)

     

(50.8)

%

Viibryd®/Fetzima®

   

-

     

192.8

     

4.8

     

-

     

197.6

     

-

     

158.4

     

3.1

     

-

     

161.5

     

36.1

     

22.4

%

Eye Drops

   

107.2

     

-

     

112.7

     

-

     

219.9

     

100.0

     

-

     

141.2

     

-

     

241.2

     

(21.3)

     

(8.8)

%

Asacol®/Delzicol®

   

-

     

56.3

     

20.0

     

-

     

76.3

     

-

     

70.8

     

24.1

     

-

     

94.9

     

(18.6)

     

(19.6)

%

Coolsculpting® Consumables

   

108.5

     

-

     

38.1

     

-

     

146.6

     

125.3

     

-

     

26.6

     

-

     

151.9

     

(5.3)

     

(3.5)

%

Coolsculpting® Systems & Add On
Applicators

   

33.3

     

-

     

22.2

     

-

     

55.5

     

70.1

     

-

     

13.5

     

-

     

83.6

     

(28.1)

     

(33.6)

%

Alloderm®

   

196.2

     

-

     

3.8

     

-

     

200.0

     

206.6

     

-

     

4.5

     

-

     

211.1

     

(11.1)

     

(5.3)

%

Ozurdex ®

   

60.2

     

-

     

144.1

     

-

     

204.3

     

53.1

     

-

     

132.3

     

-

     

185.4

     

18.9

     

10.2

%

Carafate ® /Sulcrate ®

   

-

     

110.5

     

1.3

     

-

     

111.8

     

-

     

110.3

     

1.4

     

-

     

111.7

     

0.1

     

0.1

%

Aczone®

   

3.4

     

-

     

-

     

-

     

3.4

     

37.1

     

-

     

0.2

     

-

     

37.3

     

(33.9)

     

(90.9)

%

Zenpep®

   

-

     

133.0

     

-

     

-

     

133.0

     

-

     

108.4

     

-

     

-

     

108.4

     

24.6

     

22.7

%

Canasa®/Salofalk®

   

-

     

18.2

     

7.7

     

-

     

25.9

     

-

     

83.6

     

8.7

     

-

     

92.3

     

(66.4)

     

(71.9)

%

Vraylar®

   

-

     

339.8

     

-

     

-

     

339.8

     

-

     

198.6

     

-

     

-

     

198.6

     

141.2

     

71.1

%

Saphris®

   

-

     

64.5

     

-

     

-

     

64.5

     

-

     

66.5

     

-

     

-

     

66.5

     

(2.0)

     

(3.0)

%

Viberzi®

   

-

     

88.0

     

0.6

     

-

     

88.6

     

-

     

80.8

     

0.4

     

-

     

81.2

     

7.4

     

9.1

%

Teflaro®

   

-

     

70.5

     

0.2

     

-

     

70.7

     

-

     

64.6

     

0.6

     

-

     

65.2

     

5.5

     

8.4

%

Namzaric®

   

-

     

46.0

     

-

     

-

     

46.0

     

-

     

65.2

     

-

     

-

     

65.2

     

(19.2)

     

(29.4)

%

Rapaflo®

   

16.3

     

-

     

2.0

     

-

     

18.3

     

42.5

     

-

     

2.8

     

-

     

45.3

     

(27.0)

     

(59.6)

%

Skin Care

   

77.3

     

-

     

6.4

     

-

     

83.7

     

66.2

     

-

     

7.9

     

-

     

74.1

     

9.6

     

13.0

%

Kybella® /Belkyra®

   

15.8

     

-

     

2.2

     

-

     

18.0

     

19.4

     

-

     

3.7

     

-

     

23.1

     

(5.1)

     

(22.1)

%

Dalvance®

   

-

     

32.3

     

2.2

     

-

     

34.5

     

-

     

29.6

     

1.3

     

-

     

30.9

     

3.6

     

11.7

%

Avycaz®

   

-

     

56.4

     

-

     

-

     

56.4

     

-

     

45.3

     

-

     

-

     

45.3

     

11.1

     

24.5

%

Liletta®

   

-

     

36.7

     

-

     

-

     

36.7

     

-

     

23.6

     

-

     

-

     

23.6

     

13.1

     

55.5

%

Namenda®

   

-

     

15.6

     

-

     

-

     

15.6

     

-

     

44.0

     

-

     

-

     

44.0

     

(28.4)

     

(64.5)

%

Armour Thyroid

   

-

     

106.7

     

-

     

-

     

106.7

     

-

     

97.4

     

-

     

-

     

97.4

     

9.3

     

9.5

%

Savella®

   

-

     

43.0

     

-

     

-

     

43.0

     

-

     

39.0

     

-

     

-

     

39.0

     

4.0

     

10.3

%

Other Products Revenues

   

131.2

     

387.9

     

167.2

     

4.4

     

690.7

     

158.7

     

383.2

     

196.5

     

34.4

     

772.8

     

(82.1)

     

(10.6)

%

Total Net Revenues

 

$

3,328.0

   

$

2,705.6

   

$

1,649.2

   

$

4.4

     

7,687.2

   

$

3,405.3

   

$

2,543.7

   

$

1,812.9

   

$

34.4

     

7,796.3

   

$

(109.1)

     

(1.4)

%

                                                                                                 
                                                                                                 
                                                                                                 

1Botox® is comprised of the following:

                                                                                               

Botox® Therapeutics

   

844.6

     

-

     

192.7

     

-

     

1,037.3

     

797.8

     

-

     

200.8

     

-

     

998.6

     

38.7

     

3.9

%

Botox®  Cosmetics

   

481.9

     

-

     

323.2

     

-

     

805.1

     

433.2

     

-

     

320.0

     

-

     

753.2

     

51.9

     

6.9

%

                                                                                                 
 

 

 

The following table presents Allergan plc's Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018.

 

Table 3

 

ALLERGAN PLC

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(Unaudited; in millions)

 
   

June 30

   

December 31,

 
   

2019

   

2018

 
                 
                 

Assets

               

Cash and cash equivalents

 

$

1,651.4

   

$

880.4

 

Marketable securities

   

322.3

     

1,026.9

 

Accounts receivable, net

   

3,086.3

     

2,868.1

 

Inventories

   

1,004.5

     

846.9

 

Prepaid expenses and other current assets

   

2,508.3

     

819.1

 

Assets held for sale

   

32.5

     

916.2

 

Property, plant and equipment, net

   

1,821.0

     

1,787.0

 

Investments and other assets

   

1,024.3

     

3,034.3

 

Right of use asset - operating leases

   

457.9

     

-

 

Product rights and other intangibles

   

41,231.5

     

43,695.4

 

Goodwill

   

42,340.7

     

45,913.3

 

Total assets

 

$

95,480.7

   

$

101,787.6

 
                 

Liabilities & Equity

               

Current liabilities

 

$

5,086.3

   

$

4,859.6

 

Lease liability

   

538.0

   

$

-

 

Current and long-term debt and capital leases

   

22,703.5

     

23,797.7

 

Deferred income taxes and other liabilities

   

7,456.8

     

7,999.3

 

Total equity

   

59,696.1

     

65,131.0

 

Total liabilities and equity

 

$

95,480.7

   

$

101,787.6

 
 

 

 

The following table presents Allergan plc's Condensed Consolidated Statements of Cash Flows for the three and six months ended June 30, 2019 and 2018.

 

Table 4

 

ALLERGAN PLC

             

CONSOLIDATED STATEMENTS OF CASH FLOWS

             

(Unaudited; in millions)

             
   

Three Months Ended June 30,

   

Six Months Ended June 30,

 
   

2019

   

2018

   

2019

   

2018

 

Cash Flows From Operating Activities:

                               

Net (loss) / income

 

$

(1,754.9)

   

$

(470.1)

   

$

(4,162.2)

   

$

(754.0)

 

Reconciliation to net cash provided by operating activities:

                               

Depreciation

   

48.7

     

49.1

     

96.2

     

105.2

 

Amortization

   

1,402.0

     

1,697.1

     

2,801.4

     

3,394.7

 

Provision for inventory reserve

   

64.6

     

31.2

     

83.4

     

45.4

 

Share-based compensation

   

59.5

     

54.9

     

111.8

     

127.4

 

Deferred income tax benefit

   

63.3

     

(333.2)

     

(166.4)

     

(1,359.6)

 

In-process research and development impairments

   

436.0

     

276.0

     

436.0

     

798.0

 

Goodwill and other impairments and asset sales, net

   

1,215.2

     

259.6

     

3,677.0

     

272.7

 

Gain on forward sale of Teva shares

   

-

     

(138.6)

     

-

     

(60.9)

 

Gain on sale of business

   

-

     

(53.0)

     

-

     

(53.0)

 

Non-cash extinguishment of debt

   

(0.1)

     

4.0

     

0.2

     

4.0

 

Cash charge related to extinguishment of debt

   

-

     

(13.1)

     

-

     

(13.1)

 

Amortization of deferred financing costs

   

4.5

     

5.6

     

9.1

     

11.9

 

Non-cash lease expense

   

37.9

     

-

     

68.0

     

-

 

Contingent consideration adjustments,
   including accretion

   

28.1

     

(107.1)

     

46.8

     

(101.8)

 

Other, net

   

(9.0)

     

(6.8)

     

(19.3)

     

(0.3)

 

Changes in assets and liabilities (net of effects
   of acquisitions):

                               

Decrease / (increase) in accounts receivable, net

   

(353.0)

     

(168.8)

     

(220.6)

     

90.3

 

Decrease / (increase) in inventories

   

(51.0)

     

(60.6)

     

(179.3)

     

(113.3)

 

Decrease / (increase) in prepaid expenses
   and other current assets

   

(12.3)

     

39.9

     

23.9

     

39.3

 

Increase / (decrease) in accounts payable
   and accrued expenses

   

361.4

     

191.2

     

161.6

     

(40.4)

 

Increase / (decrease) in income and other
   taxes payable

   

(104.2)

     

28.8

     

(44.2)

     

365.4

 

Increase / (decrease) in other assets and liabilities

   

(26.4)

     

(45.9)

     

(79.1)

     

(59.4)

 

Net cash provided by operating activities

   

1,410.3

     

1,240.2

     

2,644.3

     

2,698.5

 

Cash Flows From Investing Activities:

                               

Additions to property, plant and equipment

   

(87.5)

     

(60.1)

     

(152.3)

     

(106.5)

 

Additions to product rights and other intangibles

   

(38.5)

     

-

     

(46.0)

     

-

 

Additions to investments

   

(200.0)

     

-

     

(738.2)

     

(1,455.9)

 

Proceeds from sale of investments and other assets

   

892.9

     

761.8

     

1,462.0

     

5,651.3

 

Payments to settle Teva related matters

   

-

     

-

     

-

     

(466.0)

 

Proceeds from sales of property, plant and equipment

   

0.5

     

0.4

     

17.7

     

11.5

 

Acquisitions of businesses, net of cash acquired

   

-

     

-

     

(80.6)

     

-

 

Net cash (used in) investing activities

   

567.4

     

702.1

     

462.6

     

3,634.4

 

Cash Flows From Financing Activities:

                               

Proceeds from borrowings on long-term indebtedness, including credit facility

   

3.3

     

-

     

3.3

     

709.0

 

Proceeds from Forward Sale of Teva securities

   

-

     

93.2

     

-

     

465.5

 

Payments on debt, including capital lease obligations

   

(879.7)

     

(1,031.6)

     

(1,039.1)

     

(5,353.7)

 

Proceeds from stock plans

   

13.9

     

33.7

     

23.6

     

69.2

 

Other financing, including contingent consideration

   

(2.1)

     

(1.3)

     

(4.1)

     

(10.6)

 

Payments to settle Teva related matters

   

-

     

-

     

-

     

(234.0)

 

Repurchase of ordinary shares

   

(4.3)

     

(132.5)

     

(833.5)

     

(1,572.1)

 

Dividends

   

(242.7)

     

(244.2)

     

(488.8)

     

(563.7)

 

Net cash (used in) financing activities

   

(1,111.6)

     

(1,282.7)

     

(2,338.6)

     

(6,490.4)

 

Effect of currency exchange rate changes on cash

   and cash equivalents

   

(3.2)

     

20.3

     

2.7

     

15.0

 

Net increase / (decrease) in cash and cash equivalents

   

862.9

     

679.9

     

771.0

     

(142.5)

 

Cash and cash equivalents at beginning of period

   

788.5

     

994.8

     

880.4

     

1,817.2

 

Cash and cash equivalents at end of period

 

$

1,651.4

   

$

1,674.7

   

$

1,651.4

   

$

1,674.7

 
 

 

 

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 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 June 30, 2019 and December 31, 2018 was $36.2 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 and six months ended June 30, 2019 and 2018:

 

Table 5

 

ALLERGAN PLC

 

GAAP TO NON-GAAP ADJUSTMENTS

 

(Unaudited; in millions)

 
                                                                                 
   

Three Months Ended June 30, 2019

 
   

Net

Revenue

   

COGS

   

Research &

Development

   

Selling &

Marketing

   

General &

Administrative

   

Amortization

   

Asset sales &
Impairments,
net

   

Interest

expense,

net

   

Other

income

(expense)

   

Income

taxes

 

GAAP

 

$

4,090.1

   

$

652.3

   

$

450.0

   

$

873.3

   

$

324.2

   

$

1,402.0

   

$

1,651.2

   

$

(185.7)

   

$

(4.7)

   

$

301.6

 
                                                                                 

Purchase accounting impact on stock-based compensation for
acquired awards

   

-

     

(0.2)

     

(0.3)

     

(0.7)

     

(0.2)

     

-

     

-

     

-

     

-

     

-

 

Non-acquisition related severance and restructuring

   

-

     

(0.3)

     

-

     

(0.9)

     

(2.1)

     

-

     

-

     

-

     

-

     

-

 

Costs associated with disposed businesses

   

-

     

-

     

-

     

-

     

(0.1)

     

-

     

-

     

-

     

-

     

-

 

Integration charges of acquired businesses

   

-

     

-

     

(0.4)

     

(0.1)

     

(4.0)

     

-

     

-

     

-

     

-

     

-

 

Costs associated with the Abbvie transaction

   

-

     

-

     

-

     

-

     

(19.5)

     

-

     

-

     

-

     

-

     

-

 

Accretion and fair-value adjustments to contingent
consideration

   

-

     

(25.8)

     

(2.3)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Non-cash amortization of debt premium recognized in
purchase accounting

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

(5.5)

     

-

     

-

 

Impairment of goodwill

   

-

     

-

     

-

     

-

     

-

     

-

     

(1,085.2)

     

-

     

-

     

-

 

Impairment of Anti-Infective assets previously held for sale

   

-

     

-

     

-

     

-

     

-

     

-

     

(129.6)

     

-

     

-

     

-

 

Impairment of IPR&D products acquired in the Allergan
Acquisition

   

-

     

-

     

-

     

-

     

-

     

-

     

(182.0)

     

-

     

-

     

-

 

Impairment of IPR&D product acquired in the Vitae Acquisition

   

-

     

-

     

-

     

-

     

-

     

-

     

(78.0)

     

-

     

-

     

-

 

Impairment of IPR&D products acquired in the Tobira
Acquisition

   

-

     

-

     

-

     

-

     

-

     

-

     

(176.0)

     

-

     

-

     

-

 

Asset sales and impairments, other

   

-

     

-

     

-

     

-

     

-

     

-

     

(0.4)

     

-

     

-

     

-

 

Litigation settlement related charges

   

-

     

-

     

-

     

-

     

(7.8)

     

-

     

-

     

-

     

-

     

-

 

Other adjustments

   

-

     

(0.1)

     

-

     

-

     

0.7

     

(1,402.0)

     

-

     

-

     

-

     

-

 

Income taxes on pre-tax adjustments

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

288.1

 

Discrete income tax events

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

(377.6)

 
                                                                                 

Non-GAAP Adjusted

 

$

4,090.1

   

$

625.9

   

$

447.0

   

$

871.6

   

$

291.2

   

$

-

   

$

-

   

$

(191.2)

   

$

(4.7)

   

$

212.1

 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
   

Three Months Ended June 30, 2018

 
   

Net

Revenue

   

COGS

   

Research &
Development

   

Selling &
Marketing

   

General &
Administrative

   

Amortization

   

Asset sales &
Impairments,
net

   

Interest

expense,

net

   

Other

income

(expense)

   

Income

taxes

 

GAAP

 

$

4,124.2

   

$

481.8

   

$

689.2

   

$

853.4

   

$

334.1

   

$

1,697.1

   

$

535.6

   

$

(223.7)

   

$

215.4

   

$

(5.2)

 
                                                                                 

Purchase accounting impact on stock-based compensation for
acquired awards

   

-

     

(0.4)

     

(0.8)

     

(1.7)

     

(0.5)

     

-

     

-

     

-

     

-

     

-

 

Severance due to integration of acquired entities

   

-

     

-

     

-

     

-

     

(0.3)

     

-

     

-

     

-

     

-

     

-

 

Non-acquisition related severance and restructuring

   

-

     

(9.3)

     

(0.3)

     

(6.9)

     

3.0

     

-

     

-

     

-

     

-

     

-

 

Costs associated with disposed businesses

   

-

     

(1.0)

     

-

     

-

     

(0.7)

     

-

     

-

     

-

     

-

     

-

 

Integration charges of acquired businesses

   

-

     

-

     

(0.4)

     

(0.5)

     

(13.9)

     

-

     

-

     

-

     

-

     

-

 

Milestones and upfront expenses for asset acquisitions

                                                                               

Elastagen Pty Ltd

   

-

     

-

     

(96.1)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

AstraZeneca plc

   

-

     

-

     

(90.0)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Merck & Co.

   

-

     

-

     

(85.0)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Other

   

-

     

-

     

(6.2)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Accretion and fair-value adjustments to contingent
consideration

   

-

     

128.8

     

(21.7)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Non-cash amortization of debt premium recognized in
purchase accounting

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

(5.4)

     

-

     

-

 

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

   

-

     

-

     

-

     

-

     

-

     

-

     

(252.0)

     

-

     

-

     

-

 

Asset sales and impairments, other

   

-

     

-

     

-

     

-

     

-

     

-

     

(7.6)

     

-

     

-

     

-

 

Gain on Teva shares

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

(138.3)

     

-

 

Milestone component of ongoing intellectual property
agreement

   

(25.0)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Gain on the sale of divestiture

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

(53.0)

     

-

 

Gain on bond repurchases

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

(9.1)

     

-

 

Litigation settlement related charges

   

-

     

-

     

-

     

-

     

(29.0)

     

-

     

-

     

-

     

-

     

-

 

Other adjustments

   

-

     

0.1

     

0.2

     

-

     

(2.6)

     

(1,697.1)

     

-

     

-

     

0.1

     

-

 

Income taxes on pre-tax adjustments

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

315.3

 

Discrete income tax events

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

(58.0)

 
                                                                                 

Non-GAAP Adjusted

 

$

4,099.2

   

$

600.0

   

$

388.9

   

$

844.3

   

$

290.1

   

$

-

   

$

-

   

$

(229.1)

   

$

15.1

   

$

252.1

 
                                                                                 

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 June 30, 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 June 30, 2019 excludes a net discrete tax detriment of $377.6 million related to a change in a valuation allowance and uncertain tax positions offset by the tax effects of intangible asset impairments and U.S. capital losses.

 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
   

Six Months Ended June 30, 2019

 
   

Net

Revenue

   

COGS

   

Research &

Development

   

Selling &

Marketing

   

General &

Administrative

   

Amortization

   

Asset sales &
Impairments,
net

   

Interest

expense,

net

   

Other

income

(expense)

   

Income

taxes

 

GAAP

 

$

7,687.2

   

$

1,150.1

   

$

885.0

   

$

1,677.3

   

$

632.5

   

$

2,801.4

   

$

4,113.0

   

$

(366.2)

   

$

9.1

   

$

233.0

 
                                                                                 

Purchase accounting impact on stock-based compensation for
acquired awards

   

-

     

(0.5)

     

(0.7)

     

(1.6)

     

(0.5)

     

-

     

-

     

-

     

-

     

-

 

Severance due to integration of acquired entities

   

-

     

-

     

-

     

-

     

(0.8)

     

-

     

-

     

-

     

-

     

-

 

Non-acquisition related severance and restructuring

   

-

     

(4.9)

     

-

     

0.9

     

(2.2)

     

-

     

-

     

-

     

-

     

-

 

Costs associated with disposed businesses

   

-

     

-

     

-

     

-

     

(0.3)

     

-

     

-

     

-

     

-

     

-

 

Integration charges of acquired businesses

   

-

     

-

     

(0.5)

     

(0.1)

     

(8.3)

     

-

     

-

     

-

     

-

     

-

 

Costs associated with the Abbvie transaction

   

-

     

-

     

-

     

-

     

(19.5)

     

-

     

-

     

-

     

-

     

-

 

Milestones and upfront expenses for asset acquisitions

                                                                               

Akarna Therapeutics, Ltd

   

-

     

-

     

(10.0)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Other

   

-

     

-

     

(24.1)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Accretion and fair-value adjustments to contingent
consideration

   

-

     

(42.0)

     

(4.8)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Non-cash amortization of debt premium recognized in
purchase accounting

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

(11.0)

     

-

     

-

 

Impairment of goodwill

   

-

     

-

     

-

     

-

     

-

     

-

     

(3,552.2)

     

-

     

-

     

-

 

Impairment of Anti-Infective assets previously held for sale

                                                   

(129.6)

                         

Impairment of IPR&D products acquired in the Allergan
Acquisition

                                                   

(182.0)

                         

Impairment of IPR&D product acquired in the Vitae Acquisition

                                                   

(78.0)

                         

Impairment of IPR&D products acquired in the Tobira
Acquisition

                                                   

(176.0)

                         

Asset sales and impairments, other

   

-

     

-

     

-

     

-

     

-

     

-

     

4.8

     

-

     

-

     

-

 

Litigation settlement related charges

   

-

     

-

     

-

     

-

     

(18.2)

     

-

     

-

     

-

     

-

     

-

 

Other adjustments

   

-

     

(0.1)

     

-

     

-

     

(0.2)

     

(2,801.4)

     

-

     

-

     

(0.3)

     

-

 

Income taxes on pre-tax adjustments

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

474.7

 

Discrete income tax events

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

(309.2)

 
                                                                                 

Non-GAAP Adjusted

 

$

7,687.2

   

$

1,102.6

   

$

844.9

   

$

1,676.5

   

$

582.5

   

$

-

   

$

-

   

$

(377.2)

   

$

8.8

   

$

398.5

 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
   

Six Months Ended June 30, 2018

 
   

Net

Revenue

   

COGS

   

Research &
Development

   

Selling &
Marketing

   

General &
Administrative

   

Amortization

   

Asset sales &
Impairments,
net

   

Interest

expense,

net

   

Other

income

(expense)

   

Income

taxes

 

GAAP

 

$

7,796.3

   

$

1,004.6

   

$

1,163.9

   

$

1,653.4

   

$

630.0

   

$

3,394.7

   

$

1,070.7

   

$

(457.0)

   

$

136.6

   

$

(687.4)

 
                                                                                 

Purchase accounting impact on stock-based compensation for
acquired awards

   

-

     

(1.5)

     

(3.6)

     

(6.0)

     

(2.1)

     

-

     

-

     

-

     

-

     

-

 

Severance due to integration of acquired entities

   

-

     

-

     

-

     

(0.7)

     

(0.8)

     

-

     

-

     

-

     

-

     

-

 

Non-acquisition related severance and restructuring

   

-

     

(21.9)

     

(0.9)

     

(17.2)

     

(4.3)

     

-

     

(13.6)

     

-

     

-

     

-

 

Costs associated with disposed businesses

   

-

     

(1.5)

     

-

     

-

     

(3.3)

     

-

     

-

     

-

     

-

     

-

 

Integration charges of acquired businesses

   

-

     

-

     

(0.6)

     

(0.7)

     

(24.6)

     

-

     

-

     

-

     

-

     

-

 

Milestones and upfront expenses for asset acquisitions

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Elastagen Pty Ltd

   

-

     

-

     

(96.1)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

AstraZeneca plc

   

-

     

-

     

(90.0)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Merck & Co.

   

-

     

-

     

(85.0)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Chase Pharmaceuticals Corporation

   

-

     

-

     

(75.0)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Repros Therapeutics, Inc.

   

-

     

-

     

(33.2)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Other

   

-

     

-

     

(11.4)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Accretion and fair-value adjustments to contingent
consideration

   

-

     

125.4

     

(23.6)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Non-cash amortization of debt premium recognized in
purchase accounting

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

(10.2)

     

-

     

-

 

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

   

-

     

-

     

-

     

-

     

-

     

-

     

(252.0)

     

-

     

-

     

-

 

Impairment of RORgt IPR&D product

   

-

     

-

     

-

     

-

     

-

     

-

     

(522.0)

     

-

     

-

     

-

 

Asset sales and impairments, other

   

-

     

-

     

-

     

-

     

-

     

-

     

(7.1)

     

-

     

-

     

-

 

Gain on Teva securities

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

(60.6)

     

-

 

Milestone component of ongoing intellectual property
agreement

   

(25.0)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Gain on the sale of divestiture

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

(53.0)

     

-

 

Gain on bond repurchases

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

(9.1)

     

-

 

Litigation settlement related charges

   

-

     

-

     

-

     

-

     

(39.3)

     

-

     

-

     

-

     

-

     

-

 

Other adjustments

   

-

     

0.1

     

0.2

     

-

     

(1.3)

     

(3,394.7)

     

-

     

-

     

0.1

     

-

 

Income taxes on pre-tax adjustments

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

753.1

 

Discrete income tax events

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

401.6

 
                                                                                 

Non-GAAP Adjusted

 

$

7,771.3

   

$

1,105.2

   

$

744.7

   

$

1,628.8

   

$

554.3

   

$

-

   

$

-

   

$

(467.2)

   

$

14.0

   

$

467.3

 
                                                                                 

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 six months ended June 30, 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 six months ended June 30, 2019 excludes a net discrete tax detriment of $309.2 million related to a change in a valuation allowance and uncertain tax positions offset by the tax effects of intangible asset impairments and U.S. capital losses.

 
                                                                                 
 


 

 

 

The following table presents a reconciliation of Allergan plc's reported net income / (loss) 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 six months ended June 30, 2019 and 2018:

 

Table 6

 

ALLERGAN PLC

             

RECONCILIATION TABLE

             

(Unaudited; in millions except per share amounts)

             
                                 
   

Three Months Ended

   

Six Months Ended

 
   

June 30,

   

June 30,

 
   

2019

   

2018

   

2019

   

2018

 
                                 
                                 

GAAP to Non-GAAP Performance net income calculation

                               
                                 

GAAP (loss) / income from continuing operations
attributable to shareholders

 

$

(1,759.0)

   

$

(472.5)

   

$

(4,167.0)

   

$

(758.6)

 

Adjusted for:

                               

Amortization

   

1,402.0

     

1,697.1

     

2,801.4

     

3,394.7

 

Acquisition, divestiture and licensing (income) /
charges

   

19.4

     

103.3

     

55.9

     

313.5

 

Accretion and fair-value adjustments to contingent
consideration

   

28.1

     

(107.1)

     

46.8

     

(101.8)

 

Goodwill and other impairments and asset sales, net
and related costs

   

1,651.2

     

535.6

     

4,113.0

     

1,070.7

 

Other

   

-

     

(34.2)

     

-

     

(34.2)

 

Non-acquisition restructurings, including Global Supply
Chain initiatives

   

3.3

     

13.5

     

6.2

     

44.3

 

Legal settlements

   

7.8

     

29.0

     

18.2

     

39.3

 

Income taxes on items above and other discrete
income tax adjustments

   

89.5

     

(257.3)

     

(165.5)

     

(1,154.7)

 

Non-GAAP performance net income attributable to
shareholders

 

$

1,442.3

   

$

1,507.4

   

$

2,709.0

   

$

2,813.2

 
                                 

Diluted earnings per share

                               
                                 

Diluted (loss) / income per share from continuing
operations attributable to shareholders- GAAP

 

$

(5.37)

   

$

(1.39)

   

$

(12.63)

   

$

(2.25)

 
                                 

Non-GAAP performance net income per share attributable
to shareholders

 

$

4.38

   

$

4.42

   

$

8.17

   

$

8.16

 
                                 

Basic weighted average ordinary shares outstanding

   

327.8

     

339.1

     

329.9

     

336.9

 

Effect of dilutive securities:

                               

Dilutive shares

   

1.6

     

2.2

     

1.8

     

8.0

 

Diluted weighted average ordinary shares outstanding

   

329.4

     

341.3

     

331.7

     

344.9

 
               
               
 

 

 

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) stock-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 adjusted operating income as adjusted EBITDA including depreciation and certain stock-based compensation charges and excluding dividend income and fair value accounting results included within other income (expense), net.

 

The following table presents a reconciliation of Allergan plc's reported net income / (loss) from continuing operations attributable to shareholders for the three and six months ended June 30, 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

   

Six Months Ended

 
   

June 30,

   

June 30,

 
   

2019

   

2018

   

2019

   

2018

 
                                 
                                 

GAAP (loss) / income from continuing operations attributable to
shareholders

 

$

(1,759.0)

   

$

(472.5)

   

$

(4,167.0)

   

$

(758.6)

 

Plus:

                               

Interest expense

   

195.4

     

230.0

     

397.2

     

480.6

 

Interest income

   

(9.7)

     

(6.3)

     

(31.0)

     

(23.6)

 

(Benefit) for income taxes

   

301.6

     

(5.2)

     

233.0

     

(687.4)

 

Depreciation

   

48.7

     

49.1

     

96.2

     

105.2

 

Amortization

   

1,402.0

     

1,697.1

     

2,801.4

     

3,394.7

 

EBITDA

 

$

179.0

   

$

1,492.2

   

$

(670.2)

   

$

2,510.9

 

Adjusted for:

                               

Acquisition, divestiture and licensing charges

   

23.5

     

105.3

     

63.6

     

302.3

 

Goodwill and other impairments and asset sales, net and
related costs

   

1,651.2

     

535.6

     

4,113.0

     

1,070.7

 

Other

   

-

     

(34.2)

     

-

     

(34.2)

 

Non-acquisition restructurings, including Global Supply Chain
initiatives, excluding depreciation

   

3.3

     

10.5

     

6.2

     

41.3

 

Legal settlements

   

7.8

     

29.0

     

18.2

     

39.3

 

Accretion and fair-value adjustments to contingent
consideration

   

28.1

     

(107.1)

     

46.8

     

(101.8)

 

Share-based compensation including cash settlements

   

59.5

     

54.9

     

111.8

     

127.4

 

Adjusted EBITDA

 

$

1,952.4

   

$

2,086.2

   

$

3,689.4

   

$

3,955.9

 

Adjusted for:

                               

Depreciation

   

(48.7)

     

(46.1)

     

(96.2)

     

(102.2)

 

Other income (expense) related to fair value accounting

   

4.7

     

(14.8)

     

(8.8)

     

(14.8)

 

Share-based compensation not related to restructuring
charges and purchase accounting impact on stock-based
compensation for acquired awards

   

(58.1)

     

(51.5)

     

(108.5)

     

(106.0)

 

Non-GAAP Operating Income

 

$

1,850.3

   

$

1,973.8

   

$

3,475.9

   

$

3,732.9

 
 

 

 

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 six months ended June 30, 2019 and 2018.

 
                                                                                 
                                                                                 
                                 

Table 8

 

ALLERGAN PLC

 

Segment Contribution to Non-GAAP Allergan plc Contribution

 

(Unaudited; $ in millions)

 
                                                                                 
   

Three Months Ended June 30, 2019

   

Three Months Ended June 30, 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

$

1,785.1

   

$

1,455.7

   

$

847.7

   

$

1.6

   

$

4,090.1

   

$

1,826.7

   

$

1,320.0

   

$

948.9

   

$

3.6

   

$

4,099.2

 

Operating expenses:

                                                                             

Cost of sales(1)

 

151.0

     

231.3

     

145.6

     

98.0

     

625.9

     

148.7

     

201.8

     

139.4

     

110.1

     

600.0

 

Selling and marketing

 

368.0

     

250.1

     

253.6

     

(0.1)

     

871.6

     

343.3

     

254.8

     

246.2

     

-

     

844.3

 

General and administrative

 

37.6

     

30.4

     

28.4

     

194.8

     

291.2

     

48.1

     

34.7

     

33.9

     

173.4

     

290.1

 

Segment contribution

$

1,228.5

   

$

943.9

   

$

420.1

   

$

(291.1)

   

$

2,301.4

   

$

1,286.6

   

$

828.7

   

$

529.4

   

$

(279.9)

   

$

2,364.8

 

Segment margin

 

68.8

%

   

64.8

%

   

49.6

%

 

n.m.

     

56.3

%

   

70.4

%

   

62.8

%

   

55.8

%

 

n.m.

     

57.7

%

Segment gross margin(2)

 

91.5

%

   

84.1

%

   

82.8

%

 

n.m.

     

84.7

%

   

91.9

%

   

84.7

%

   

85.3

%

 

n.m.

     

85.4

%

                                                                                 

(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.

 
                                                                                 
   

Six Months Ended June 30, 2019

   

Six Months Ended June 30, 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

$

3,328.0

   

$

2,705.6

   

$

1,649.2

   

$

4.4

   

$

7,687.2

   

$

3,405.3

   

$

2,543.7

   

$

1,812.9

   

$

9.4

   

$

7,771.3

 

Operating expenses:

                                                                             

Cost of sales(1)

 

271.1

     

421.8

     

255.3

     

154.4

     

1,102.6

     

282.9

     

384.4

     

260.3

     

177.6

     

1,105.2

 

Selling and marketing

 

724.8

     

460.6

     

491.2

     

(0.1)

     

1,676.5

     

656.5

     

480.3

     

491.9

     

0.1

     

1,628.8

 

General and administrative

 

92.2

     

74.2

     

54.1

     

362.0

     

582.5

     

98.3

     

73.6

     

65.3

     

317.1

     

554.3

 

Segment contribution

$

2,239.9

   

$

1,749.0

   

$

848.6

   

$

(511.9)

   

$

4,325.6

   

$

2,367.6

   

$

1,605.4

   

$

995.4

   

$

(485.4)

   

$

4,483.0

 

Segment margin

 

67.3

%

   

64.6

%

   

51.5

%

 

n.m.

     

56.3

%

   

69.5

%

   

63.1

%

   

54.9

%

 

n.m.

     

57.7

%

Segment gross margin(2)

 

91.9

%

   

84.4

%

   

84.5

%

 

n.m.

     

85.7

%

   

91.7

%

   

84.9

%

   

85.6

%

 

n.m.

     

85.8

%

                                                                                 

(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.

 
                                                                                 
 

 

 

The following table details Allergan plc's product revenue for significant promoted products within the US Specialized Therapeutics segment for the three and six months ended June 30, 2019 and 2018.

 

Table 9

 

ALLERGAN PLC

 

US Specialized Therapeutics Product Revenue

 

(Unaudited; in millions)

 
                       
   

Three Months Ended June 30,

   

Change

 
   

2019

   

2018

   

Dollars

   

%

 

Total Eye Care

 

$

572.0

   

$

587.0

   

$

(15.0)

     

(2.6)

%

Restasis®

   

310.9

     

318.2

     

(7.3)

     

(2.3)

%

Alphagan®/Combigan®

   

91.6

     

98.1

     

(6.5)

     

(6.6)

%

Lumigan®/Ganfort®

   

62.1

     

73.0

     

(10.9)

     

(14.9)

%

Ozurdex®

   

29.9

     

27.6

     

2.3

     

8.3

%

Eye Drops

   

57.8

     

53.8

     

4.0

     

7.4

%

Other Eye Care

   

19.7

     

16.3

     

3.4

     

20.9

%

Total Medical Aesthetics

   

735.5

     

743.6

     

(8.1)

     

(1.1)

%

Facial Aesthetics

   

417.5

     

387.5

     

30.0

     

7.7

%

Botox®Cosmetics

   

252.4

     

236.5

     

15.9

     

6.7

%

Juvederm®Collection

   

156.6

     

139.8

     

16.8

     

12.0

%

Kybella®

   

8.5

     

11.2

     

(2.7)

     

(24.1)

%

Plastic Surgery

   

67.6

     

75.9

     

(8.3)

     

(10.9)

%

Breast Implants

   

67.6

     

75.9

     

(8.3)

     

(10.9)

%

Regenerative Medicine

   

128.9

     

137.6

     

(8.7)

     

(6.3)

%

Alloderm®

   

101.2

     

107.1

     

(5.9)

     

(5.5)

%

Other Regenerative Medicine

   

27.7

     

30.5

     

(2.8)

     

(9.2)

%

Body Contouring

   

78.9

     

108.3

     

(29.4)

     

(27.1)

%

Coolsculpting®Systems & Add On
Applicators

   

18.2

     

36.4

     

(18.2)

     

(50.0)

%

Coolsculpting®Consumables

   

60.7

     

71.9

     

(11.2)

     

(15.6)

%

Skin Care(3)

   

42.6

     

34.3

     

8.3

     

24.2

%

Total Medical Dermatology

   

9.3

     

39.2

     

(29.9)

     

(76.3)

%

Aczone®

   

1.8

     

21.1

     

(19.3)

     

(91.5)

%

Other Medical Dermatology(4)

   

7.5

     

18.1

     

(10.6)

     

(58.6)

%

Total Neuroscience & Urology

   

451.5

     

441.7

     

9.8

     

2.2

%

Botox®Therapeutics(5)

   

447.0

     

422.0

     

25.0

     

5.9

%

Rapaflo®

   

4.5

     

19.7

     

(15.2)

     

(77.2)

%

Other Revenues

   

16.8

     

15.2

     

1.6

     

10.5

%

Net Revenues

 

$

1,785.1

   

$

1,826.7

   

$

(41.6)

     

(2.3)

%

                                 

Operating expenses:

                               

Cost of sales(1)

   

151.0

     

148.7

     

2.3

     

1.5

%

Selling and marketing

   

368.0

     

343.3

     

24.7

     

7.2

%

General and administrative

   

37.6

     

48.1

     

(10.5)

     

(21.8)

%

Segment contribution

 

$

1,228.5

   

$

1,286.6

   

$

(58.1)

     

(4.5)

%

Segment margin

   

68.8

%

   

70.4

%

           

(1.6)

%

Segment gross margin(2)

   

91.5

%

   

91.9

%

           

(0.4)

%

(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 $6.4 million which were previously disclosed separately in the three months ended June 30, 2018.

 

(5) Includes Botox® Hyperhidrosis of $17.3 million which was previously disclosed under Medical Dermatology in the three months ended June 30, 2018.

 
   
                       
                                 
                                 
                                 
                                 
   

Six Months Ended June 30,

   

Change

 
   

2019

   

2018

   

Dollars

   

%

 

Total Eye Care

 

$

1,037.1

   

$

1,078.1

   

$

(41.0)

     

(3.8)

%

Restasis®

   

542.6

     

574.0

     

(31.4)

     

(5.5)

%

Alphagan®/Combigan®

   

174.6

     

182.3

     

(7.7)

     

(4.2)

%

Lumigan®/Ganfort®

   

119.8

     

139.8

     

(20.0)

     

(14.3)

%

Ozurdex®

   

60.2

     

53.1

     

7.1

     

13.4

%

Eye Drops

   

107.2

     

100.0

     

7.2

     

7.2

%

Other Eye Care

   

32.7

     

28.9

     

3.8

     

13.1

%

Total Medical Aesthetics

   

1,383.7

     

1,379.2

     

4.5

     

0.3

%

Facial Aesthetics

   

784.0

     

715.2

     

68.8

     

9.6

%

Botox®Cosmetics

   

481.9

     

433.2

     

48.7

     

11.2

%

Juvederm®Collection

   

286.3

     

262.6

     

23.7

     

9.0

%

Kybella®

   

15.8

     

19.4

     

(3.6)

     

(18.6)

%

Plastic Surgery

   

128.8

     

136.6

     

(7.8)

     

(5.7)

%

Breast Implants

   

128.8

     

136.6

     

(7.8)

     

(5.7)

%

Regenerative Medicine

   

251.8

     

265.8

     

(14.0)

     

(5.3)

%

Alloderm®

   

196.2

     

206.6

     

(10.4)

     

(5.0)

%

Other Regenerative Medicine

   

55.6

     

59.2

     

(3.6)

     

(6.1)

%

Body Contouring

   

141.8

     

195.4

     

(53.6)

     

(27.4)

%

Coolsculpting®Systems & Add On
Applicators

   

33.3

     

70.1

     

(36.8)

     

(52.5)

%

Coolsculpting®Consumables

   

108.5

     

125.3

     

(16.8)

     

(13.4)

%

Skin Care(3)

   

77.3

     

66.2

     

11.1

     

16.8

%

Total Medical Dermatology

   

15.4

     

75.9

     

(60.5)

     

(79.7)

%

Aczone®

   

3.4

     

37.1

     

(33.7)

     

(90.8)

%

Other Medical Dermatology(4)

   

12.0

     

38.8

     

(26.8)

     

(69.1)

%

Total Neuroscience & Urology

   

860.9

     

840.3

     

20.6

     

2.5

%

Botox®Therapeutics(5)

   

844.6

     

797.8

     

46.8

     

5.9

%

Rapaflo®

   

16.3

     

42.5

     

(26.2)

     

(61.6)

%

Other Revenues

   

30.9

     

31.8

     

(0.9)

     

(2.8)

%

Net Revenues

 

$

3,328.0

   

$

3,405.3

   

$

(77.3)

     

(2.3)

%

                                 

Operating expenses:

                               

Cost of sales(1)

   

271.1

     

282.9

     

(11.8)

     

(4.2)

%

Selling and marketing

   

724.8

     

656.5

     

68.3

     

10.4

%

General and administrative

   

92.2

     

98.3

     

(6.1)

     

(6.2)

%

Segment contribution

 

$

2,239.9

   

$

2,367.6

   

$

(127.7)

     

(5.4)

%

Segment margin

   

67.3

%

   

69.5

%

           

(2.2)

%

Segment gross margin(2)

   

91.9

%

   

91.7

%

           

0.2

%

(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 $15.8 million which were previously disclosed separately in the six months ended June 30, 2018.

 

(5) Includes Botox® Hyperhidrosis of $34.6 million which was previously disclosed under Medical Dermatology in the six months ended June 30, 2018.

 
   
 

 

 

The following table details Allergan plc's product revenue for significant promoted products within the US General Medicine segment for the three and six months ended June 30, 2019 and 2018.

 

Table 10

 

ALLERGAN PLC

 

US General Medicine Product Revenue

 

(Unaudited; in millions)

 
                       
   

Three Months Ended June 30,

   

Change

 
   

2019

   

2018

   

Dollars

   

%

 

Total Central Nervous System (CNS)

 

$

365.2

   

$

269.9

   

$

95.3

     

35.3

%

Vraylar®

   

196.1

     

114.2

     

81.9

     

71.7

%

Viibryd®/Fetzima®

   

107.8

     

86.7

     

21.1

     

24.3

%

Saphris®

   

32.6

     

33.8

     

(1.2)

     

(3.6)

%

Namzaric®

   

22.6

     

31.8

     

(9.2)

     

(28.9)

%

Namenda ®(3)

   

6.1

     

3.4

     

2.7

     

79.4

%

Total Gastrointestinal (GI)

   

419.2

     

431.9

     

(12.7)

     

(2.9)

%

Linzess®

   

196.0

     

191.8

     

4.2

     

2.2

%

Zenpep®

   

70.0

     

55.5

     

14.5

     

26.1

%

Carafate®/Sulcrate®

   

56.2

     

54.3

     

1.9

     

3.5

%

Viberzi®

   

50.8

     

44.9

     

5.9

     

13.1

%

Asacol®/Delzicol®

   

31.6

     

32.6

     

(1.0)

     

(3.1)

%

Canasa®/Salofalk®

   

8.0

     

45.0

     

(37.0)

     

(82.2)

%

Other GI

   

6.6

     

7.8

     

(1.2)

     

(15.4)

%

Total Women's Health

   

226.0

     

196.5

     

29.5

     

15.0

%

Lo Loestrin®

   

145.5

     

127.8

     

17.7

     

13.8

%

Liletta®

   

21.9

     

15.5

     

6.4

     

41.3

%

Other Women's Health(4)(5)

   

58.6

     

53.2

     

5.4

     

10.2

%

Total Anti-Infectives

   

91.4

     

79.8

     

11.6

     

14.5

%

Teflaro®

   

37.0

     

32.4

     

4.6

     

14.2

%

Avycaz®

   

26.7

     

23.5

     

3.2

     

13.6

%

Dalvance®

   

20.3

     

17.7

     

2.6

     

14.7

%

Other Anti-Infectives

   

7.4

     

6.2

     

1.2

     

19.4

%

Diversified Brands

   

306.0

     

284.9

     

21.1

     

7.4

%

Bystolic®/Byvalson®

   

150.5

     

148.1

     

2.4

     

1.6

%

Armour Thyroid

   

56.7

     

49.2

     

7.5

     

15.2

%

Savella®

   

22.3

     

19.1

     

3.2

     

16.8

%

Other Diversified Brands(6)(7)

   

76.5

     

68.5

     

8.0

     

11.7

%

Other Revenues

   

47.9

     

57.0

     

(9.1)

     

(16.0)

%

Net revenues

 

$

1,455.7

   

$

1,320.0

   

$

135.7

     

10.3

%

                                 

Operating expenses:

                               

Cost of sales(1)

   

231.3

     

201.8

     

29.5

     

14.6

%

Selling and marketing

   

250.1

     

254.8

     

(4.7)

     

(1.8)

%

General and administrative

   

30.4

     

34.7

     

(4.3)

     

(12.4)

%

Segment contribution

 

$

943.9

   

$

828.7

   

$

115.2

     

13.9

%

Segment margin

   

64.8

%

   

62.8

%

           

2.0

%

Segment gross margin(2)

   

84.1

%

   

84.7

%

           

(0.6)

%

(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 $13.1 million which were previously disclosed separately in the three months ended June 30, 2018.

 

(5) Includes Minastrin® 24 sales of $0.8 million which were previously disclosed separately in the three months ended June 30, 2018.

 

(6) Includes Lexapro® sales of $14.5 million which were previously disclosed separately in the three months ended June 30, 2018.

 

(7) Includes PacPharma sales of $3.7 million which were previously disclosed separately in the three months ended June 30, 2018.

 
                                 
                                 
                                 
                                 
                                 
   

Six Months Ended June 30,

   

Change

 
   

2019

   

2018

   

Dollars

   

%

 

Total Central Nervous System (CNS)

 

$

658.7

   

$

532.7

   

$

126.0

     

23.7

%

Namenda®

   

15.6

     

44.0

     

(28.4)

     

(64.5)

%

Namzaric®

   

46.0

     

65.2

     

(19.2)

     

(29.4)

%

Viibryd®/Fetzima®

   

192.8

     

158.4

     

34.4

     

21.7

%

Saphris®

   

64.5

     

66.5

     

(2.0)

     

(3.0)

%

Vraylar™

   

339.8

     

198.6

     

141.2

     

71.1

%

Total Gastrointestinal (GI)

   

777.4

     

820.6

     

(43.2)

     

(5.3)

%

Linzess®

   

357.3

     

351.1

     

6.2

     

1.8

%

Asacol®/Delzicol®

   

56.3

     

70.8

     

(14.5)

     

(20.5)

%

Carafate®/Sulcrate®

   

110.5

     

110.3

     

0.2

     

0.2

%

Zenpep®

   

133.0

     

108.4

     

24.6

     

22.7

%

Canasa®/Salofalk®

   

18.2

     

83.6

     

(65.4)

     

(78.2)

%

Viberzi®

   

88.0

     

80.8

     

7.2

     

8.9

%

Other GI

   

14.1

     

15.6

     

(1.5)

     

(9.6)

%

Total Women's Health

   

427.0

     

359.8

     

67.2

     

18.7

%

Lo Loestrin®

   

271.3

     

242.4

     

28.9

     

11.9

%

Liletta®

   

36.7

     

23.6

     

13.1

     

55.5

%

Other Women's Health(4)(5)

   

119.0

     

93.8

     

25.2

     

26.9

%

Total Anti-Infectives

   

173.0

     

151.4

     

21.6

     

14.3

%

Teflaro®

   

70.5

     

64.6

     

5.9

     

9.1

%

Dalvance®

   

32.3

     

29.6

     

2.7

     

9.1

%

Avycaz®

   

56.4

     

45.3

     

11.1

     

24.5

%

Other Anti-Infectives

   

13.8

     

11.9

     

1.9

     

16.0

%

Diversified Brands

   

576.9

     

559.8

     

17.1

     

3.1

%

Bystolic®/Byvalson®

   

278.8

     

280.9

     

(2.1)

     

(0.7)

%

Armour Thyroid

   

106.7

     

97.4

     

9.3

     

9.5

%

Savella®

   

43.0

     

39.0

     

4.0

     

10.3

%

Other Diversified Brands(6)(7)

   

148.4

     

142.5

     

5.9

     

4.1

%

Other Revenues

   

92.6

     

119.4

     

(26.8)

     

(22.4)

%

Net revenues

 

$

2,705.6

   

$

2,543.7

   

$

161.9

     

6.4

%

                                 

Operating expenses:

                               

Cost of sales(1)

   

421.8

     

384.4

     

37.4

     

9.7

%

Selling and marketing

   

460.6

     

480.3

     

(19.7)

     

(4.1)

%

General and administrative

   

74.2

     

73.6

     

0.6

     

0.8

%

Segment contribution

 

$

1,749.0

   

$

1,605.4

   

$

143.6

     

8.9

%

Segment margin

   

64.6

%

   

63.1

%

           

1.5

%

Segment gross margin(2)

   

84.4

%

   

84.9

%

           

(0.5)

%

(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 $19.5 million which were previously disclosed separately in the six months ended June 30, 2018.

 

(5) Includes Minastrin® 24 sales of $6.0 million which were previously disclosed separately in the six months ended June 30, 2018.

 

(6) Includes Lexapro® sales of $29.2 million which were previously disclosed separately in the six months ended June 30, 2018.

 

(7) Includes PacPharma sales of $8.1 million which were previously disclosed separately in the six months ended June 30, 2018.

 
   
                                 
 

 

 

The following table details Allergan plc's product revenue for significant promoted products within the International segment for the three and six months ended June 30, 2019 and 2018.

 

Table 11

 

ALLERGAN PLC

 

International Product Revenue

 

(Unaudited; in millions)

 
                                 
   

Three Months Ended June 30,

   

Change

 
   

2019

   

2018

   

Dollars

   

%

 

Total Eye Care

 

$

327.0

   

$

353.7

   

$

(26.7)

     

(7.5)

%

Lumigan®/Ganfort®

   

90.4

     

100.5

     

(10.1)

     

(10.0)

%

Alphagan®/Combigan®

   

40.9

     

44.6

     

(3.7)

     

(8.3)

%

Ozurdex®

   

81.0

     

67.9

     

13.1

     

19.3

%

Eye Drops(3)

   

57.3

     

72.4

     

(15.1)

     

(20.9)

%

Restasis®

   

11.9

     

16.0

     

(4.1)

     

(25.6)

%

Other Eye Care

   

45.5

     

52.3

     

(6.8)

     

(13.0)

%

Total Medical Aesthetics

   

357.2

     

409.8

     

(52.6)

     

(12.8)

%

Facial Aesthetics

   

349.1

     

329.8

     

19.3

     

5.9

%

Botox®Cosmetics

   

175.8

     

171.4

     

4.4

     

2.6

%

Juvederm®Collection

   

172.7

     

156.1

     

16.6

     

10.6

%

Belkyra®(Kybella®)

   

0.6

     

2.3

     

(1.7)

     

(73.9)

%

Plastic Surgery

   

(31.1)

     

40.3

     

(71.4)

     

(177.2)

%

Breast Implants

   

(31.4)

     

39.9

     

(71.3)

     

(178.7)

%

Other Plastic Surgery

   

0.3

     

0.4

     

(0.1)

     

(25.0)

%

Regenerative Medicine

   

3.6

     

4.7

     

(1.1)

     

(23.4)

%

Alloderm®

   

2.2

     

2.3

     

(0.1)

     

(4.3)

%

Other Regenerative Medicine

   

1.4

     

2.4

     

(1.0)

     

(41.7)

%

Body Contouring

   

31.9

     

30.9

     

1.0

     

3.2

%

Coolsculpting®Systems & Add On Applicators

   

11.6

     

12.4

     

(0.8)

     

(6.5)

%

Coolsculpting®Consumables

   

20.3

     

18.5

     

1.8

     

9.7

%

Skin Care

   

3.7

     

4.1

     

(0.4)

     

(9.8)

%

Botox® Therapeutics and Other

   

148.9

     

166.6

     

(17.7)

     

(10.6)

%

Botox®Therapeutics

   

98.8

     

104.6

     

(5.8)

     

(5.5)

%

Asacol®/Delzicol®

   

9.7

     

12.4

     

(2.7)

     

(21.8)

%

Constella®

   

4.8

     

6.4

     

(1.6)

     

(25.0)

%

Other Products

   

35.6

     

43.2

     

(7.6)

     

(17.6)

%

Other Revenues

   

14.6

     

18.8

     

(4.2)

     

(22.3)

%

Net revenues

 

$

847.7

   

$

948.9

   

$

(101.2)

     

(10.7)

%

                                 

Operating expenses:

                               

Cost of sales(1)

   

145.6

     

139.4

     

6.2

     

4.4

%

Selling and marketing

   

253.6

     

246.2

     

7.4

     

3.0

%

General and administrative

   

28.4

     

33.9

     

(5.5)

     

(16.2)

%

Segment contribution

 

$

420.1

   

$

529.4

   

$

(109.3)

     

(20.6)

%

Segment margin

   

49.6

%

   

55.8

%

           

(6.2)

%

Segment gross margin(2)

   

82.8

%

   

85.3

%

           

(2.5)

%

(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 $30.7 million which were previously disclosed separately in the three months ended June 30, 2018.

 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
   

Six Months Ended June 30,

   

Change

 
   

2019

   

2018

   

Dollars

   

%

 

Total Eye Care

 

$

618.8

   

$

697.4

   

$

(78.6)

     

(11.3)

%

Lumigan®/Ganfort®

   

175.5

     

200.9

     

(25.4)

     

(12.6)

%

Alphagan®/Combigan®

   

78.5

     

88.8

     

(10.3)

     

(11.6)

%

Ozurdex®

   

144.1

     

132.3

     

11.8

     

8.9

%

Eye Drops(3)

   

112.7

     

141.2

     

(28.5)

     

(20.2)

%

Restasis®

   

22.3

     

34.3

     

(12.0)

     

(35.0)

%

Other Eye Care

   

85.7

     

99.9

     

(14.2)

     

(14.2)

%

Total Medical Aesthetics

   

710.0

     

768.3

     

(58.3)

     

(7.6)

%

Facial Aesthetics

   

655.9

     

625.9

     

30.0

     

4.8

%

Botox®Cosmetics

   

323.2

     

320.0

     

3.2

     

1.0

%

Juvederm®Collection

   

330.5

     

302.2

     

28.3

     

9.4

%

Belkyra®(Kybella®)

   

2.2

     

3.7

     

(1.5)

     

(40.5)

%

Plastic Surgery

   

(19.5)

     

84.8

     

(104.3)

     

(123.0)

%

Breast Implants

   

(20.2)

     

84.0

     

(104.2)

     

(124.0)

%

Other Plastic Surgery

   

0.7

     

0.8

     

(0.1)

     

(12.5)

%

Regenerative Medicine

   

6.9

     

9.6

     

(2.7)

     

(28.1)

%

Alloderm®

   

3.8

     

4.5

     

(0.7)

     

(15.6)

%

Other Regenerative Medicine

   

3.1

     

5.1

     

(2.0)

     

(39.2)

%

Body Contouring

   

60.3

     

40.1

     

20.2

     

50.4

%

Coolsculpting®Systems & Add On Applicators

   

22.2

     

13.5

     

8.7

     

64.4

%

Coolsculpting®Consumables

   

38.1

     

26.6

     

11.5

     

43.2

%

Skin Care

   

6.4

     

7.9

     

(1.5)

     

(19.0)

%

Botox® Therapeutics and Other

   

287.7

     

316.3

     

(28.6)

     

(9.0)

%

Botox®Therapeutics

   

192.7

     

200.8

     

(8.1)

     

(4.0)

%

Asacol®/Delzicol®

   

20.0

     

24.1

     

(4.1)

     

(17.0)

%

Constella®

   

10.3

     

12.0

     

(1.7)

     

(14.2)

%

Other Products

   

64.7

     

79.4

     

(14.7)

     

(18.5)

%

Other Revenues

   

32.7

     

30.9

     

1.8

     

5.8

%

Net revenues

 

$

1,649.2

   

$

1,812.9

   

$

(163.7)

     

(9.0)

%

                                 

Operating expenses:

                               

Cost of sales(1)

   

255.3

     

260.3

     

(5.0)

     

(1.9)

%

Selling and marketing

   

491.2

     

491.9

     

(0.7)

     

(0.1)

%

General and administrative

   

54.1

     

65.3

     

(11.2)

     

(17.2)

%

Segment contribution

 

$

848.6

   

$

995.4

   

$

(146.8)

     

(14.7)

%

Segment margin

   

51.5

%

   

54.9

%

           

(3.4)

%

Segment gross margin(2)

   

84.5

%

   

85.6

%

           

(1.1)

%

(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 $58.5 million which were previously disclosed separately in the six months ended June 30, 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 twelve months ending December 31, 2019:

   

Table 12

   

Twelve months ending
December 31, 2019

(in millions, except per share information)

 

LOW

GAAP income/(loss) from continuing operations attributable to shareholders

 

$

(3,957.0)

Adjusted for:

     

Amortization

   

5,690.0

Acquisition, divestiture, licensing and other non-recurring charges

   

113.0

Accretion and fair-value adjustments to contingent consideration

   

58.0

Impairment/asset sales and related costs

   

4,115.0

Non-acquisition restructurings, including Global Supply Chain initiatives

   

6.0

Legal settlements

   

18.0

Income taxes on items above and other discrete income tax
adjustments

   

(548.0)

Non-GAAP performance net income attributable to shareholders

   

5,495.0

       

Diluted earnings per share

     
       

Diluted (loss) / income per share from continuing operations attributable to
shareholders- GAAP

 

$

(12.03)

       

Non-GAAP performance diluted net income per share attributable to
shareholders

 

$

16.55

       

Basic weighted average ordinary shares outstanding

   

329.0

Effect of dilutive securities:

     

Dilutive shares

   

3.0

Diluted weighted average ordinary shares outstanding

   

332.0

 

 

 

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