News

February 10, 2020
Allergan Reports Fourth Quarter and Full-Year 2019 Financial Results
- Full-Year 2019 GAAP Net Revenues of $16.1 Billion; Q4 2019 GAAP Net Revenues of $4.4 Billion -
- Full-Year 2019 GAAP Loss Per Share of $16.02; Non-GAAP Performance Net Income Per Share of $17.64 -
- Q4 2019 GAAP Loss Per Share of $0.97; Non-GAAP Performance Net Income Per Share of $5.22 -
- Q4 2019 GAAP Operating Loss of $276.6 Million; Non-GAAP Operating Income of $2.08 Billion -
- Full-Year and Q4 2019 GAAP Net Revenue Driven by Growth in Top Promoted Products Including VRAYLAR®, BOTOX®, JUVÉDERM® Collection, OZURDEX® and Lo LOESTRIN®; Global Facial Aesthetics Rose 9.5% in FY 2019 and 8.2% in Q4 2019 (Excluding Exchange) -
- Continues to Advance R&D Pipeline on Key Programs Including FDA Approval of UBRELVY™ (Ubrogepant) for Migraine; Bimatoprost SR for Glaucoma NDA and Abicipar for Wet Age-Related Macular Degeneration BLA Under FDA Review -

DUBLIN, Feb. 10, 2020 /PRNewswire/ -- Allergan plc (NYSE: AGN) today reported its full-year and fourth quarter 2019 financial results including full-year 2019 GAAP net revenues of $16.1 billion, a 1.9 percent increase from 2018. Fourth quarter 2019 GAAP net revenues were $4.35 billion, a 6.6 percent increase from the prior year quarter.

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FOURTH QUARTER AND FULL-YEAR 2019 FINANCIAL RESULTS

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

 

Q4 '19

   

Q4 '18

   

Q4 '19 v Q4
'18

   

Year Ended December 31, 2019

   

Year Ended December 31, 2018

   

2019 v 2018

 

Total Net Revenues

 

$

4,351.0

   

$

4,079.7

     

6.6

%

 

$

16,088.9

   

$

15,787.4

     

1.9

%

                                                 

Operating (Loss)

 

$

(276.6)

   

$

(5,384.1)

     

94.9

%

 

$

(4,445.3)

   

$

(6,247.6)

     

28.8

%

Diluted EPS

 

$

(0.97)

   

$

(12.83)

     

92.4

%

 

$

(16.02)

   

$

(15.26)

     

(5.0)

%

SG&A Expense

 

$

1,639.6

   

$

1,193.6

     

37.4

%

 

$

5,943.5

   

$

4,521.8

     

31.4

%

R&D Expense

 

$

452.5

   

$

678.1

     

(33.3)

%

 

$

1,812.0

   

$

2,266.2

     

(20.0)

%

Tax Rate

   

24.8

%

   

23.2

%

   

1.6

%

   

(2.9)

%

   

25.8

%

   

(28.7)

%

                                                 

Non-GAAP Net Revenues

 

$

4,351.0

   

$

4,079.7

     

6.6

%

 

$

16,063.9

   

$

15,762.4

     

1.9

%

Non-GAAP Operating Income

 

$

2,079.3

   

$

1,917.8

     

8.4

%

 

$

7,314.5

   

$

7,555.8

     

(3.2)

%

Non-GAAP Performance Net Income Per Share

 

$

5.22

   

$

4.29

     

21.7

%

 

$

17.64

   

$

16.69

     

5.7

%

Non-GAAP Adjusted EBITDA

 

$

2,205.8

   

$

1,990.5

     

10.8

%

 

$

7,760.1

   

$

7,954.1

     

(2.4)

%

Non-GAAP SG&A Expense

 

$

1,162.2

   

$

1,140.4

     

1.9

%

 

$

4,600.6

   

$

4,354.9

     

5.6

%

Non-GAAP R&D Expense

 

$

414.8

   

$

436.1

     

(4.9)

%

 

$

1,708.6

   

$

1,574.5

     

8.5

%

Non-GAAP Tax Rate

   

10.3

%

   

14.3

%

   

(4.0)

%

   

11.7

%

   

14.2

%

   

(2.5)

%

                                                 
 

Executive Commentary

"I am proud of Allergan's colleagues who achieved many important milestones in 2019 that will make a difference to patients for years to come. They achieved FDA approval of UBRELVY™, a first-in-class oral treatment for migraine; two new approvals for BOTOX® for pediatric spasticity; approval for VRAYLAR® for bipolar depression; and filings for two new eye care drugs - Bimatoprost SR for glaucoma and Abicipar for Age-related Macular Degeneration," said Brent Saunders, Chairman and CEO of Allergan. "Our colleagues also grew our core business1 by 7.1 percent in 2019 and by 11.0 percent in the fourth quarter (excluding exchange), creating strong momentum for 2020 and our proposed combination with AbbVie."

Full-Year 2019 Financial Results

GAAP operating loss in 2019 was $4.45 billion compared with $6.25 billion in 2018. Non-GAAP operating income, which excludes the impact of impairments, amortization and other items, was $7.31 billion in 2019 compared to $7.56 billion in 2018. GAAP cash flow from operations for the full year of 2019 totaled $7.24 billion. Cash flow from operations for the full year of 2019 includes a one-time $1.6 billion refund of taxes previously paid on capital gains. The tax refund was accrued in a prior period and the cash was received in the third quarter of 2019.

Fourth Quarter 2019 Financial Results

GAAP operating loss in the fourth quarter of 2019 was $276.6 million. Non-GAAP operating income in the fourth quarter of 2019 was $2.08 billion, an increase of 8.4 percent versus the prior year quarter. GAAP cash flow from operations for the fourth quarter of 2019 totaled $1.67 billion.

Operating Expenses

Total GAAP Selling, General and Administrative (SG&A) Expense was $1.64 billion for the fourth 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 fourth quarter of 2019, an increase of 1.9 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 fourth quarter of 2019 was $452.5 million, compared to $678.1 million in the fourth quarter of 2018. Non-GAAP R&D investment for the fourth quarter of 2019 was $414.8 million, a decrease of 4.9 percent compared to the prior year quarter.

Amortization, Tax and Capitalization

Amortization expense for the fourth quarter of 2019 was $1.52 billion, compared to $1.57 billion in the fourth quarter of 2018. The Company's GAAP tax rate was 24.8 percent in the fourth quarter of 2019. The Company's non-GAAP adjusted tax rate was 10.3 percent in the fourth quarter of 2019. As of December 31, 2019Allergan had cash and marketable securities of $5.91 billion and outstanding indebtedness of $22.6 billion.

Operating Charges and Impairments

Allergan recorded a pre-tax charge of $302.5 million in the three months ended December 31, 2019 related to settlements reached in principle by subsidiaries Warner Chilcott and Watson with direct and indirect purchasers of LOESTRIN® 24 Fe and MINASTRIN® 24 Fe, resolving class action litigations pending in the U.S. District Court for the District of Rhode Island. Additionally, Allergan recorded a pre-tax charge of $78.8 million in the three months ended December 31, 2019 related to settlements reached in principle by its Allergan Inc. subsidiary with a putative plaintiff class of direct purchasers of RESTASIS®, as well as a group of pharmaceutical retailers, in the previously disclosed direct purchaser class action antitrust litigation pending in the U.S. District Court for the Eastern District of New York. Also in the fourth quarter of 2019, Allergan recorded a $314.0 million GAAP intangible asset impairment related to CARAFATE® due to the entry of a generic competitor. The Company excludes operating charges, 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.

1 Core business = Promoted Brands & Brands with Ongoing Exclusivity + Other Product Revenues & Other Revenues (See Table 12)

FOURTH QUARTER 2019 BUSINESS SEGMENT RESULTS

U.S. Specialized Therapeutics

U.S. Specialized Therapeutics net revenues were $1.82 billion in the fourth quarter of 2019, an increase of 0.7 percent versus the prior year quarter. Demand growth in BOTOX® Therapeutic, BOTOX® Cosmetic, ALLODERM® and JUVÉDERM® Collection was offset by a decline in sales of CoolSculpting® and lower RESTASIS® revenues compared to the prior year quarter. Segment gross margin for the fourth quarter of 2019 was 91.4 percent. Segment contribution for the fourth quarter of 2019 was $1.24 billion.

Medical Aesthetics

  • Facial Aesthetics
    • BOTOX® Cosmetic net revenues in the fourth quarter of 2019 were $271.8 million, an increase of 5.3 percent from the prior year quarter. For full-year 2019, BOTOX® Cosmetic net revenues were $991.3 million, an increase of 9.3 percent from 2018.
    • JUVÉDERM® Collection (defined as JUVÉDERM®, VOLUMA® and other fillers) net revenues in the fourth quarter of 2019 were $166.4 million, an increase of 5.1 percent versus the prior year quarter. For full-year 2019, JUVÉDERM® Collection net revenues were $587.5 million, an increase of 7.2 percent from 2018.
  • Regenerative Medicine
    • ALLODERM® net revenues in the fourth quarter of 2019 were $104.7 million, an increase of 10.3 percent versus the prior year quarter.
  • Body Contouring
    • CoolSculpting® net revenues (including both CoolSculpting® Systems/Applicators and Consumables) in the fourth quarter of 2019 were $53.3 million, a decrease of 34.4 percent from the prior year quarter.
    • CoolTone™ received regulatory clearance in the U.S. in 2019 and full launch began in January 2020.

Neurosciences & Urology

  • BOTOX® Therapeutic net revenues in the fourth quarter of 2019 were $463.0 million, an increase of 6.9 percent versus the prior year quarter.

Eye Care

  • RESTASIS® net revenues in the fourth quarter of 2019 were $309.0 million, a decrease of 4.9 percent versus the prior year quarter.
  • ALPHAGAN®/COMBIGAN® net revenues in the fourth quarter of 2019 were $94.5 million, a decrease of 3.3 percent versus the prior year quarter.
  • OZURDEX® net revenues in the fourth quarter of 2019 were $31.6 million, an increase of 7.8 percent versus the prior year quarter.

U.S. General Medicine

U.S. General Medicine net revenues in the fourth quarter of 2019 were $1.61 billion, an increase of 15.2 percent versus the prior year quarter. Demand growth in VRAYLAR®, LINZESS®, VIIBRYD® and Lo LOESTRIN® was partially offset by lower revenues from products that lost exclusivity. Segment gross margin for the fourth quarter of 2019 was 82.1 percent. Segment contribution for the fourth quarter of 2019 was $1.03 billion.

Central Nervous System

  • VRAYLAR® net revenues were $283.1 million in the fourth quarter of 2019, an increase of 88.1 percent from the prior year quarter. For full-year 2019, VRAYLAR® net revenues were $857.5 million, an increase of 76.0 percent from 2018.
  • VIIBRYD®/FETZIMA® net revenues in the fourth quarter of 2019 were $114.2 million, an increase of 19.6 percent from the prior year quarter.

Gastrointestinal, Women's Health & Diversified Brands

  • LINZESS® net revenues in the fourth quarter of 2019 were $231.2 million, an increase of 12.7 percent versus the prior year quarter.
  • Lo LOESTRIN® net revenues in the fourth quarter of 2019 were $156.2 million, an increase of 8.6 percent versus the prior year quarter.
  • BYSTOLIC®/BYVALSON® net revenues in the fourth quarter of 2019 were $169.6 million, an increase of 11.8 percent from the prior year quarter.

International

International net revenues in the fourth quarter of 2019 were $917.7 million, an increase of 8.1 percent versus the prior year quarter excluding foreign exchange impact, partly due to growth in Facial Aesthetics, BOTOX® Therapeutic and OZURDEX®. Segment gross margin for the fourth quarter of 2019 was 83.8 percent. Segment contribution was $515.8 million.

Facial Aesthetics

  • BOTOX® Cosmetic net revenues in the fourth quarter of 2019 were $182.9 million, an increase of 19.8 percent versus the prior year quarter excluding foreign exchange impact. For full-year 2019, BOTOX® Cosmetic net revenues were $671.7 million, an increase of 11.2 percent from 2018 excluding foreign exchange impact.
  • JUVÉDERM® Collection net revenues in the fourth quarter of 2019 were $180.9 million, an increase of 5.7 percent versus the prior year quarter excluding foreign exchange impact. For full-year 2019, JUVÉDERM® Collection net revenues were $656.1 million, an increase of 12.1 percent from 2018 excluding foreign exchange impact.

Eye Care

  • LUMIGAN®/GANFORT® net revenues in the fourth quarter of 2019 were $95.6 million, an increase of 1.4 percent versus the prior year quarter excluding foreign exchange impact.
  • OZURDEX® net revenues in the fourth quarter of 2019 were $66.7 million, an increase of 132.8 percent versus the prior year quarter excluding foreign exchange impact. OZURDEX® growth was primarily related to a return to full stock in 2019 following a 2018 recall of OZURDEX® in certain international markets.

Botox® Therapeutic

  • BOTOX® Therapeutic net revenues in the fourth quarter of 2019 were $102.5 million, an increase of 8.9 percent versus the prior year quarter excluding foreign exchange impact.

PIPELINE UPDATE

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

  • Allergan received approval from the U.S. Food and Drug Administration (FDA) for the Company's New Drug Application (NDA) for UBRELVY™ (ubrogepant) for the acute treatment of migraine with or without aura in adults. UBRELVY™ is a first-in-class oral CGRP receptor antagonist (gepant) for the treatment of migraine attacks once they start. Launch began in January 2020.
  • Allergan announced the FDA has granted Qualified Infectious Disease Product (QIDP) Designation and Fast Track Designation for ATM-AVI (aztreonam and avibactam) for the treatment of antibiotic-resistant gram-negative infections including complicated intra-abdominal infections (cIAI), complicated urinary tract infections (cUTI) and hospital-acquired bacterial pneumonia (HABP)/ventilator-associated bacterial pneumonia (VABP). ATM-AVI is an investigational, fixed-dose, intravenous combination antibiotic being developed jointly with Pfizer.
  • 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 lower limb spasticity, excluding spasticity caused by cerebral palsy. This marks the 14th approved indication for BOTOX® and BOTOX® Cosmetic combined in the U.S., and the 11th BOTOX® therapeutic indication. The FDA approved BOTOX® (onabotulinumtoxinA) for pediatric upper limb spasticity in the second quarter of 2019.

In addition to fourth quarter 2019 pipeline developments listed above, Allergan expects two additional significant launches in the next twelve months:

  • FDA action is expected in the first half of 2020 on Allergan's NDA for Bimatoprost Sustained-Release, a biodegradable implant for the reduction of intraocular pressure in patients with open-angle glaucoma or ocular hypertension. Launch is expected to follow in the first half of 2020.
  • The FDA is currently reviewing a Biologics License Application (BLA) for Abicipar pegol, a novel, investigational DARPin® therapy, in patients with neovascular (wet) age-related macular degeneration (nAMD). The FDA is expected to take action on the BLA in mid-2020, with launch expected to follow. The European Medicines Agency (EMA) is also reviewing a Marketing Authorisation Application (MAA) for Abicipar in patients with nAMD. A decision from the European Commission is expected in the second half of 2020.

UPDATE ON PROPOSED ABBVIE TRANSACTION

On January 10, 2020AbbVie and Allergan received conditional approval from the European Commission for AbbVie's proposed acquisition of Allergan, subject to the approved divestiture of brazikumab (IL-23 inhibitor) and other conditions.

On January 27, 2020Allergan announced that it entered into definitive agreements to divest brazikumab and ZENPEP® (pancrelipase) in conjunction with the ongoing regulatory approval process for the proposed transaction.

AstraZeneca will acquire brazikumab, currently in Phase 2b/3 development for Crohn's Disease and in Phase 2 development for ulcerative colitis, including global development and commercial rights.

Nestle will acquire and take full operational ownership of ZENPEP® upon closing the transaction with customary transition support from Allergan. ZENPEP® is a treatment, which is available in the United States, for exocrine pancreatic insufficiency due to cystic fibrosis and other conditions. Nestle also will be acquiring Viokace, another pancreatic enzyme preparation, as part of the same transaction.

The closings of the divestitures of brazikumab and ZENPEP® are contingent upon receipt of U.S. Federal Trade Commission and European Commission approval, closing of AbbVie's pending acquisition of Allergan and the satisfaction of other customary closing conditions.

Allergan expects the close of the pending AbbVie transaction around the end of the first quarter 2020, subject to receipt of required regulatory approvals and other closing conditions.

Due to the pending transaction, Allergan is not hosting a conference call to discuss its fourth quarter and full-year 2019 results.

 

Allergan Contacts:

 

Investors:

 

Manisha Narasimhan, PhD

(862) 261-7162

   

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 September 30, 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

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 twelve months ended December 31, 2019 and 2018:

Table 1

     

ALLERGAN PLC

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in millions, except per share amounts)

                                     
   

Three Months Ended

   

Year Ended

     
   

December 31,

   

December 31,

     
   

2019

   

2018

   

2019

   

2018

     

Net revenues

 

$

4,351.0

   

$

4,079.7

   

$

16,088.9

   

$

15,787.4

     
                                     

Operating expenses:

                                       

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

   

704.0

     

590.0

     

2,493.1

     

2,191.4

     

Research and development

   

452.5

     

678.1

     

1,812.0

     

2,266.2

     

Selling, general and administrative

   

1,639.6

     

1,193.6

     

5,943.5

     

4,521.8

     

Amortization

   

1,517.5

     

1,569.1

     

5,856.6

     

6,552.3

     

In-process research and development impairments

   

-

     

6.6

     

436.0

     

804.6

     

Goodwill and other asset impairments / sales, net

   

314.0

     

5,426.4

     

3,993.0

     

5,698.7

     

Total operating expenses

   

4,627.6

     

9,463.8

     

20,534.2

     

22,035.0

     

Operating (loss)

   

(276.6)

     

(5,384.1)

     

(4,445.3)

     

(6,247.6)

     
                                     

Non-operating income (expense):

                                   

Interest income

   

25.3

     

11.6

     

76.8

     

45.2

     

Interest (expense)

   

(191.9)

     

(210.2)

     

(783.0)

     

(911.2)

     

Other income (expense), net

   

21.2

     

(9.9)

     

32.8

     

256.7

     

Total other income (expense), net

   

(145.4)

     

(208.5)

     

(673.4)

     

(609.3)

     

(Loss) before income taxes and noncontrolling interest

   

(422.0)

     

(5,592.6)

     

(5,118.7)

     

(6,856.9)

     

(Benefit) / provision for income taxes

   

(104.7)

     

(1,296.7)

     

146.4

     

(1,770.7)

     

Net (loss)

   

(317.3)

     

(4,295.9)

     

(5,265.1)

     

(5,086.2)

     

Loss / (income) attributable to noncontrolling interest

   

0.1

     

(4.0)

     

(5.9)

     

(10.2)

     

Net (loss) attributable to shareholders

   

(317.2)

     

(4,299.9)

     

(5,271.0)

     

(5,096.4)

     

Dividends on preferred shares

   

-

     

-

     

-

     

46.4

     

Net (loss) attributable to ordinary shareholders

 

$

(317.2)

   

$

(4,299.9)

   

$

(5,271.0)

   

$

(5,142.8)

     
                                     

(Loss) per share attributable to ordinary shareholders:

                                   

Net (loss) per share - basic

 

$

(0.97)

   

$

(12.83)

   

$

(16.02)

   

$

(15.26)

     

Net (loss) per share - diluted

   

(0.97)

     

(12.83)

     

(16.02)

     

(15.26)

     
                                     

Weighted average shares outstanding:

                                   

Basic

   

328.4

     

335.1

     

329.0

     

337.0

     

Diluted

   

328.4

     

335.1

     

329.0

     

337.0

     
                                         
 

 

 

The following table details Allergan plc's product revenue for significant promoted products globally, within the U.S., and international for the three and twelve months ended December 31, 2019 and 2018.

 

Table 2

 

ALLERGAN PLC

 

NET REVENUES TOP GLOBAL PRODUCTS

 

(Unaudited; in millions)

 
                                                                                                 
   

Three Months Ended December 31, 2019

   

Three Months Ended December 31, 2018

   

Movement

 
   

US Specialized Therapeutics

   

US General Medicine

   

International

   

Corporate

   

Total

   

US Specialized Therapeutics

   

US General Medicine

   

International

   

Corporate

   

Total

   

Total Change

   

Total Change Percentage

 
                                                                                                 

Botox®

 

$

734.8

   

$

-

   

$

285.4

   

$

-

   

$

1,020.2

   

$

691.4

   

$

-

   

$

254.5

   

$

-

   

$

945.9

   

$

74.3

     

7.9

%

Restasis®

   

309.0

     

-

     

18.7

     

-

     

327.7

     

325.0

     

-

     

16.6

     

-

     

341.6

     

(13.9)

     

(4.1)

%

Juvederm® Collection

   

166.4

     

-

     

180.9

     

-

     

347.3

     

158.4

     

-

     

174.0

     

-

     

332.4

     

14.9

     

4.5

%

Lumigan®/Ganfort®

   

81.9

     

-

     

95.6

     

-

     

177.5

     

74.0

     

-

     

96.9

     

-

     

170.9

     

6.6

     

3.9

%

Linzess®/Constella®

   

-

     

231.2

     

6.8

     

-

     

238.0

     

-

     

205.2

     

6.4

     

-

     

211.6

     

26.4

     

12.5

%

Bystolic®/Byvalson®

   

-

     

169.6

     

0.6

     

-

     

170.2

     

-

     

151.7

     

0.4

     

-

     

152.1

     

18.1

     

11.9

%

Alphagan®/Combigan®

   

94.5

     

-

     

43.1

     

-

     

137.6

     

97.7

     

-

     

46.7

     

-

     

144.4

     

(6.8)

     

(4.7)

%

Lo Loestrin®

   

-

     

156.2

     

-

     

-

     

156.2

     

-

     

143.8

     

-

     

-

     

143.8

     

12.4

     

8.6

%

Breast Implants

   

67.1

     

-

     

15.1

     

-

     

82.2

     

68.2

     

-

     

10.5

     

-

     

78.7

     

3.5

     

4.4

%

Viibryd®/Fetzima®

   

-

     

114.2

     

3.6

     

-

     

117.8

     

-

     

95.5

     

2.3

     

-

     

97.8

     

20.0

     

20.4

%

Eye Drops

   

61.2

     

-

     

59.3

     

-

     

120.5

     

47.9

     

-

     

71.7

     

-

     

119.6

     

0.9

     

0.8

%

Asacol®/Delzicol®

   

-

     

8.5

     

8.9

     

-

     

17.4

     

-

     

27.9

     

10.7

     

-

     

38.6

     

(21.2)

     

(54.9)

%

Coolsculpting® Consumables

   

36.4

     

-

     

16.6

     

-

     

53.0

     

54.5

     

-

     

23.4

     

-

     

77.9

     

(24.9)

     

(32.0)

%

Coolsculpting® Systems & Add On
Applicators

   

16.9

     

-

     

8.8

     

-

     

25.7

     

26.8

     

-

     

21.5

     

-

     

48.3

     

(22.6)

     

(46.8)

%

Ozurdex®

   

31.6

     

-

     

66.7

     

-

     

98.3

     

29.3

     

-

     

29.6

     

-

     

58.9

     

39.4

     

66.9

%

Carafate®/Sulcrate®

   

-

     

46.9

     

0.9

     

-

     

47.8

     

-

     

54.1

     

0.7

     

-

     

54.8

     

(7.0)

     

(12.8)

%

Aczone®

   

2.5

     

-

     

-

     

-

     

2.5

     

0.6

     

-

     

0.1

     

-

     

0.7

     

1.8

   

n.m.

 

Zenpep®

   

-

     

80.8

     

0.5

     

-

     

81.3

     

-

     

66.8

     

0.4

     

-

     

67.2

     

14.1

     

21.0

%

Canasa®/Salofalk®

   

-

     

7.5

     

4.7

     

-

     

12.2

     

-

     

38.8

     

4.5

     

-

     

43.3

     

(31.1)

     

(71.8)

%

Vraylar®

   

-

     

283.1

     

-

     

-

     

283.1

     

-

     

150.5

     

-

     

-

     

150.5

     

132.6

     

88.1

%

Saphris®

   

-

     

36.3

     

-

     

-

     

36.3

     

-

     

36.8

     

-

     

-

     

36.8

     

(0.5)

     

(1.4)

%

Viberzi®

   

-

     

49.8

     

0.4

     

-

     

50.2

     

-

     

48.9

     

0.6

     

-

     

49.5

     

0.7

     

1.4

%

Teflaro®

   

-

     

38.1

     

3.7

     

-

     

41.8

     

-

     

30.0

     

-

     

-

     

30.0

     

11.8

     

39.3

%

Namzaric®

   

-

     

20.2

     

-

     

-

     

20.2

     

-

     

22.6

     

-

     

-

     

22.6

     

(2.4)

     

(10.6)

%

Rapaflo®

   

2.0

     

-

     

2.5

     

-

     

4.5

     

18.9

     

-

     

1.8

     

-

     

20.7

     

(16.2)

     

(78.3)

%

Skin Care

   

44.6

     

-

     

4.2

     

-

     

48.8

     

40.4

     

-

     

3.6

     

-

     

44.0

     

4.8

     

10.9

%

Kybella®/Belkyra®

   

6.3

     

-

     

0.8

     

-

     

7.1

     

7.2

     

-

     

1.0

     

-

     

8.2

     

(1.1)

     

(13.4)

%

Alloderm®

   

104.7

     

-

     

2.0

     

-

     

106.7

     

94.9

     

-

     

2.5

     

-

     

97.4

     

9.3

     

9.5

%

Dalvance®

   

-

     

26.4

     

2.4

     

-

     

28.8

     

-

     

17.3

     

1.0

     

-

     

18.3

     

10.5

     

57.4

%

Avycaz®

   

-

     

30.7

     

-

     

-

     

30.7

     

-

     

24.6

     

-

     

-

     

24.6

     

6.1

     

24.8

%

Liletta®

   

-

     

22.5

     

-

     

-

     

22.5

     

-

     

14.6

     

-

     

-

     

14.6

     

7.9

     

54.1

%

Namenda®

   

-

     

3.2

     

-

     

-

     

3.2

     

-

     

10.7

     

-

     

-

     

10.7

     

(7.5)

     

(70.1)

%

Armour Thyroid

   

-

     

57.4

     

-

     

-

     

57.4

     

-

     

53.4

     

-

     

-

     

53.4

     

4.0

     

7.5

%

Savella®

   

-

     

21.5

     

-

     

-

     

21.5

     

-

     

23.6

     

-

     

-

     

23.6

     

(2.1)

     

(8.9)

%

Other Products Revenues

   

61.3

     

206.6

     

85.5

     

1.4

     

354.8

     

73.6

     

181.1

     

88.8

     

2.8

     

346.3

     

8.5

     

2.5

%

Total Net Revenues

 

$

1,821.2

   

$

1,610.7

   

$

917.7

   

$

1.4

     

4,351.0

   

$

1,808.8

   

$

1,397.9

   

$

870.2

   

$

2.8

     

4,079.7

   

$

271.3

     

6.6

%

   
                                                                                                 
                                                                                                 

1Botox® is comprised of the following:

                                                                                               

Botox® Therapeutics

   

463.0

     

-

     

102.5

     

-

     

565.5

     

433.3

     

-

     

96.7

     

-

     

530.0

     

35.5

     

6.7

%

Botox® Cosmetics

   

271.8

     

-

     

182.9

     

-

     

454.7

     

258.1

     

-

     

157.8

     

-

     

415.9

     

38.8

     

9.3

%

                                                                                                 
                                                                                                 
                                                                                                 
                                                                                                 
                                                                                                 
                                                                                                 
                                                                                                 
                                                                                                 
                                                                                                 
                                                                                                 
                                                                                                 
                                                                                                 
   

Twelve Months Ended December 31, 2019

   

Twelve Months Ended December 31, 2018

   

Movement

 
   

US Specialized Therapeutics

   

US General Medicine

   

International

   

Corporate

   

Total

   

US Specialized Therapeutics

   

US General Medicine

   

International

   

Corporate

   

Total

   

Total Change

   

Total Change Percentage

 
                                                                                                 

Botox®

 

$

2,730.5

   

$

-

   

$

1,060.8

   

$

-

   

$

3,791.3

   

$

2,545.8

   

$

-

   

$

1,031.6

   

$

-

   

$

3,577.4

   

$

213.9

     

6.0

%

Restasis®

   

1,138.4

     

-

     

50.2

     

-

     

1,188.6

     

1,197.0

     

-

     

64.5

     

-

     

1,261.5

     

(72.9)

     

(5.8)

%

Juvederm® Collection

   

587.5

     

-

     

656.1

     

-

     

1,243.6

     

548.2

     

-

     

614.8

     

-

     

1,163.0

     

80.6

     

6.9

%

Lumigan®/Ganfort®

   

269.2

     

-

     

360.8

     

-

     

630.0

     

291.8

     

-

     

392.6

     

-

     

684.4

     

(54.4)

     

(7.9)

%

Linzess®/Constella®

   

-

     

803.2

     

23.8

     

-

     

827.0

     

-

     

761.1

     

24.1

     

-

     

785.2

     

41.8

     

5.3

%

Bystolic®/Byvalson®

   

-

     

600.6

     

2.1

     

-

     

602.7

     

-

     

583.8

     

2.0

     

-

     

585.8

     

16.9

     

2.9

%

Alphagan®/Combigan®

   

360.0

     

-

     

162.0

     

-

     

522.0

     

375.4

     

-

     

176.0

     

-

     

551.4

     

(29.4)

     

(5.3)

%

Lo Loestrin®

   

-

     

588.9

     

-

     

-

     

588.9

     

-

     

527.7

     

-

     

-

     

527.7

     

61.2

     

11.6

%

Breast Implants

   

254.4

     

-

     

0.6

     

-

     

255.0

     

263.0

     

-

     

130.1

     

-

     

393.1

     

(138.1)

     

(35.1)

%

Viibryd®/Fetzima®

   

-

     

412.1

     

11.4

     

-

     

423.5

     

-

     

342.4

     

7.2

     

-

     

349.6

     

73.9

     

21.1

%

Eye Drops

   

230.4

     

-

     

235.8

     

-

     

466.2

     

202.7

     

-

     

279.7

     

-

     

482.4

     

(16.2)

     

(3.4)

%

Asacol®/Delzicol®

   

-

     

76.7

     

36.1

     

-

     

112.8

     

-

     

130.8

     

45.7

     

-

     

176.5

     

(63.7)

     

(36.1)

%

Coolsculpting® Consumables

   

185.3

     

-

     

76.3

     

-

     

261.6

     

235.3

     

-

     

64.2

     

-

     

299.5

     

(37.9)

     

(12.7)

%

Coolsculpting® Systems & Add On
Applicators

   

62.8

     

-

     

42.4

     

-

     

105.2

     

126.3

     

-

     

43.3

     

-

     

169.6

     

(64.4)

     

(38.0)

%

Alloderm®

   

395.9

     

-

     

7.9

     

-

     

403.8

     

407.3

     

-

     

8.0

     

-

     

415.3

     

(11.5)

     

(2.8)

%

Ozurdex®

   

125.5

     

-

     

274.6

     

-

     

400.1

     

111.0

     

-

     

187.7

     

-

     

298.7

     

101.4

     

33.9

%

Carafate®/Sulcrate®

   

-

     

212.5

     

3.0

     

-

     

215.5

     

-

     

217.8

     

2.8

     

-

     

220.6

     

(5.1)

     

(2.3)

%

Aczone®

   

9.3

     

-

     

-

     

-

     

9.3

     

55.1

     

-

     

0.4

     

-

     

55.5

     

(46.2)

     

(83.2)

%

Zenpep®

   

-

     

288.0

     

1.2

     

-

     

289.2

     

-

     

237.3

     

0.4

     

-

     

237.7

     

51.5

     

21.7

%

Canasa®/Salofalk®

   

-

     

31.5

     

16.8

     

-

     

48.3

     

-

     

169.2

     

17.6

     

-

     

186.8

     

(138.5)

     

(74.1)

%

Vraylar®

   

-

     

857.5

     

-

     

-

     

857.5

     

-

     

487.1

     

-

     

-

     

487.1

     

370.4

     

76.0

%

Saphris®

   

-

     

135.3

     

-

     

-

     

135.3

     

-

     

139.7

     

-

     

-

     

139.7

     

(4.4)

     

(3.1)

%

Viberzi®

   

-

     

187.9

     

1.6

     

-

     

189.5

     

-

     

176.5

     

1.3

     

-

     

177.8

     

11.7

     

6.6

%

Teflaro®

   

-

     

147.0

     

6.0

     

-

     

153.0

     

-

     

128.0

     

0.3

     

-

     

128.3

     

24.7

     

19.3

%

Namzaric®

   

-

     

88.6

     

-

     

-

     

88.6

     

-

     

115.8

     

-

     

-

     

115.8

     

(27.2)

     

(23.5)

%

Rapaflo®

   

23.5

     

-

     

6.0

     

-

     

29.5

     

81.9

     

-

     

6.4

     

-

     

88.3

     

(58.8)

     

(66.6)

%

Skin Care

   

158.0

     

-

     

14.6

     

-

     

172.6

     

138.8

     

-

     

15.2

     

-

     

154.0

     

18.6

     

12.1

%

Kybella®/Belkyra®

   

27.4

     

-

     

3.3

     

-

     

30.7

     

31.8

     

-

     

6.3

     

-

     

38.1

     

(7.4)

     

(19.4)

%

Dalvance®

   

-

     

81.9

     

6.0

     

-

     

87.9

     

-

     

56.1

     

2.3

     

-

     

58.4

     

29.5

     

50.5

%

Avycaz®

   

-

     

116.7

     

-

     

-

     

116.7

     

-

     

94.6

     

-

     

-

     

94.6

     

22.1

     

23.4

%

Liletta®

   

-

     

79.1

     

-

     

-

     

79.1

     

-

     

50.9

     

-

     

-

     

50.9

     

28.2

     

55.4

%

Namenda®

   

-

     

22.8

     

-

     

-

     

22.8

     

-

     

71.0

     

-

     

-

     

71.0

     

(48.2)

     

(67.9)

%

Armour Thyroid

   

-

     

218.5

     

-

     

-

     

218.5

     

-

     

198.8

     

-

     

-

     

198.8

     

19.7

     

9.9

%

Savella®

   

-

     

88.5

     

-

     

-

     

88.5

     

-

     

85.0

     

-

     

-

     

85.0

     

3.5

     

4.1

%

Other Products Revenues

   

261.9

     

797.6

     

342.6

     

32.0

     

1,434.1

     

308.9

     

749.3

     

380.2

     

39.5

     

1,477.9

     

(43.8)

     

(3.0)

%

Total Net Revenues

 

$

6,820.0

   

$

5,834.9

   

$

3,402.0

   

$

32.0

     

16,088.9

   

$

6,920.3

   

$

5,322.9

   

$

3,504.7

   

$

39.5

     

15,787.4

   

$

301.5

     

1.9

%

                                                                                                 
                                                                                                 
                                                                                                 

1Botox® is comprised of the following:

                                                                                               

Botox® Therapeutics

   

1,739.2

     

-

     

389.1

     

-

     

2,128.3

     

1,638.5

     

-

     

390.4

     

-

     

2,028.9

     

99.4

     

4.9

%

Botox® Cosmetics

   

991.3

     

-

     

671.7

     

-

     

1,663.0

     

907.3

     

-

     

641.2

     

-

     

1,548.5

     

114.5

     

7.4

%

                                                                                                 
 

 

 

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

 

Table 3

 

ALLERGAN PLC

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(Unaudited; in millions)

 
   

December 31,

   

December 31,

 
   

2019

   

2018

 
                 
                 

Assets

               

Cash and cash equivalents

 

$

2,503.3

   

$

880.4

 

Marketable securities

   

3,411.6

     

1,026.9

 

Accounts receivable, net

   

3,192.3

     

2,868.1

 

Inventories

   

1,133.1

     

846.9

 

Prepaid expenses and other current assets

   

886.4

     

819.1

 

Assets held for sale

   

31.7

     

916.2

 

Property, plant and equipment, net

   

1,926.5

     

1,787.0

 

Investments and other assets

   

984.9

     

3,034.3

 

Right of use asset - operating leases

   

490.4

     

-

 

Product rights and other intangibles

   

37,890.6

     

43,695.4

 

Goodwill

   

42,248.3

     

45,913.3

 

Total assets

 

$

94,699.1

   

$

101,787.6

 
                 

Liabilities & Equity

               

Current liabilities

 

$

6,413.8

   

$

4,859.6

 

Lease liability

   

570.5

   

$

-

 

Current and long-term debt and capital leases

   

22,649.0

     

23,797.7

 

Deferred income taxes and other liabilities

   

6,869.4

     

7,999.3

 

Total equity

   

58,196.4

     

65,131.0

 

Total liabilities and equity

 

$

94,699.1

   

$

101,787.6

 
 

 

 

The following table presents Allergan plc's Condensed Consolidated Statements of Cash Flows for the three and twelve months ended December 31, 2019 and 2018.

 

Table 4

 

ALLERGAN PLC

             

CONSOLIDATED STATEMENTS OF CASH FLOWS

             

(Unaudited; in millions)

             
   

Three Months Ended December 31,

   

Twelve Months Ended December 31,

 
   

2019

   

2018

   

2019

   

2018

 

Cash Flows From Operating Activities:

                               

Net (loss)

 

$

(317.3)

   

$

(4,295.9)

   

$

(5,265.1)

   

$

(5,086.2)

 

Reconciliation to net cash provided by operating activities:

                               

Depreciation

   

53.9

     

46.6

     

204.5

     

196.3

 

Amortization

   

1,517.5

     

1,569.1

     

5,856.6

     

6,552.3

 

Provision for inventory reserve

   

32.4

     

21.5

     

160.2

     

96.4

 

Share-based compensation

   

52.6

     

54.6

     

214.3

     

239.8

 

Deferred income tax benefit

   

(295.6)

     

107.1

     

(660.9)

     

(1,255.7)

 

In-process research and development impairments

   

-

     

6.6

     

436.0

     

804.6

 

Loss on asset sales and impairments, net

   

314.0

     

5,426.4

     

3,993.0

     

5,698.7

 

Gain on forward sale of Teva shares

   

-

     

-

     

-

     

(60.9)

 

Gain on sale of businesses

   

-

     

-

     

-

     

(182.6)

 

Non-cash extinguishment of debt

   

-

     

12.6

     

0.2

     

30.0

 

Cash charge related to extinguishment of debt

   

-

     

(27.4)

     

-

     

(45.6)

 

Amortization of deferred financing costs

   

4.2

     

5.2

     

17.5

     

22.6

 

Non-cash lease expense

   

37.4

     

-

     

130.9

     

-

 

Contingent consideration adjustments,
   including accretion

   

4.6

     

6.6

     

54.1

     

(106.5)

 

Other, net

   

(3.2)

     

28.5

     

(5.5)

     

29.0

 

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

                               

Decrease / (increase) in accounts receivable, net

   

(174.2)

     

(54.0)

     

(358.8)

     

(37.0)

 

Decrease / (increase) in inventories

   

(64.5)

     

(9.5)

     

(393.4)

     

(145.7)

 

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

   

(41.9)

     

9.7

     

(78.1)

     

4.3

 

Increase / (decrease) in accounts payable
   and accrued expenses

   

559.5

     

197.7

     

1,434.4

     

151.6

 

Increase / (decrease) in income and other
   taxes payable

   

59.2

     

(1,607.1)

     

1,697.9

     

(1,191.6)

 

Increase / (decrease) in other assets and liabilities

   

(68.3)

     

0.3

     

(199.1)

     

(73.7)

 

Net cash provided by operating activities

   

1,670.3

     

1,498.6

     

7,238.7

     

5,640.1

 

Cash Flows From Investing Activities:

                               

Additions to property, plant and equipment

   

(121.9)

     

(88.4)

     

(375.2)

     

(253.5)

 

Additions to product rights and other intangibles

   

(12.3)

     

-

     

(58.3)

     

-

 

Additions to investments

   

(200.0)

     

(1,015.3)

     

(3,938.0)

     

(2,471.7)

 

Proceeds from sale of investments and other assets

   

102.9

     

58.0

     

1,569.6

     

6,259.3

 

Payments to settle Teva related matters

   

-

     

-

     

-

     

(466.0)

 

Proceeds from sales of property, plant and equipment

   

5.2

     

5.8

     

23.7

     

30.4

 

Acquisitions of businesses, net of cash acquired

   

-

     

-

     

(80.6)

     

-

 

Net cash (used in) / provided by investing activities

   

(226.1)

     

(1,039.9)

     

(2,858.8)

     

3,098.5

 

Cash Flows From Financing Activities:

                               

Proceeds from borrowings on long-term indebtedness, including credit

   facility

   

8.6

     

1,939.8

     

11.9

     

2,657.0

 

Proceeds from Forward Sale of Teva securities

   

-

     

-

     

-

     

465.5

 

Debt issuance and other financing costs

   

-

     

(10.4)

     

-

     

(10.4)

 

Payments on debt, including capital lease obligations

   

-

     

(1,688.6)

     

(1,044.9)

     

(8,804.5)

 

Proceeds from stock plans

   

46.2

     

4.2

     

91.2

     

102.4

 

Other financing, including contingent consideration

   

(3.0)

     

(9.2)

     

(9.3)

     

(30.9)

 

Payments to settle Teva related matters

   

-

     

-

     

-

     

(234.0)

 

Repurchase of ordinary shares

   

(6.3)

     

(751.9)

     

(840.6)

     

(2,775.4)

 

Dividends

   

(243.0)

     

(241.7)

     

(974.4)

     

(1,049.8)

 

Net cash (used in) financing activities

   

(197.5)

     

(757.8)

     

(2,766.1)

     

(9,680.1)

 

Effect of currency exchange rate changes on cash

   and cash equivalents

   

19.1

     

(8.4)

     

9.1

     

4.7

 

Net increase / (decrease) in cash and cash equivalents

   

1,265.8

     

(307.5)

     

1,622.9

     

(936.8)

 

Cash and cash equivalents at beginning of period

   

1,237.5

     

1,187.9

     

880.4

     

1,817.2

 

Cash and cash equivalents at end of period

 

$

2,503.3

   

$

880.4

   

$

2,503.3

   

$

880.4

 
 

 

 

 

 

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 December 31, 2019 and December 31, 2018 was $39.6 billion and $32.3 billion, respectively, and is expected to continue to be a material non-GAAP adjustment.  The following table presents Allergan plc's GAAP to Non-GAAP adjustments for the three and twelve months ended December 31, 2019 and 2018:

 

Table 5

 

ALLERGAN PLC

 

GAAP TO NON-GAAP ADJUSTMENTS

 

(Unaudited; in millions)

 
                                                                                 
   

Three Months Ended December 31, 2019

 
   

Net

Revenue

   

COGS

   

Research &

Development

   

Selling &

Marketing

   

General &

Administrative

   

Amortization

   

Asset sales & Impairments, net

   

Interest

expense,

net

   

Other

income

(expense)

   

Income

taxes

 

GAAP

 

$

4,351.0

   

$

704.0

   

$

452.5

   

$

883.0

   

$

756.6

   

$

1,517.5

   

$

314.0

   

$

(166.6)

   

$

21.2

   

$

(104.7)

 
                                                                                 

Purchase accounting impact on stock-based compensation for
acquired awards

   

-

     

(0.2)

     

(0.2)

     

(0.6)

     

(0.2)

     

-

     

-

     

-

     

-

     

-

 

Severance due to integration of acquired entities

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Non-acquisition related severance and restructuring

   

-

     

(2.3)

     

0.1

     

(1.4)

     

4.2

     

-

     

-

     

-

     

-

     

-

 

Costs associated with disposed businesses

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Integration charges of acquired businesses

   

-

     

(0.3)

     

(4.9)

     

(0.7)

     

(13.2)

     

-

     

-

     

-

     

-

     

-

 

Costs associated with the AbbVie transaction

   

-

     

(4.1)

     

(3.1)

     

(31.2)

     

(34.5)

     

-

     

-

     

-

     

-

     

-

 

Milestones and upfront expenses for asset acquisitions

                                                                               

Other

   

-

     

-

     

(27.1)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Accretion and fair-value adjustments to contingent
consideration

   

-

     

(2.2)

     

(2.4)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Impairment of Carafate intangible asset

   

-

     

-

     

-

     

-

     

-

     

-

     

(314.0)

     

-

     

-

     

-

 

Non-cash amortization of debt premium recognized in
purchase accounting

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

(5.8)

     

-

     

-

 

Asset sales and impairments, other

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Litigation settlement related charges

   

-

     

-

     

-

     

-

     

(401.6)

     

-

     

-

     

-

     

-

     

-

 

Other adjustments

   

-

     

(0.1)

     

(0.1)

     

-

     

1.8

     

(1,517.5)

     

-

     

-

     

-

     

-

 

Income taxes on pre-tax adjustments

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

239.9

 

Discrete income tax events

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

63.2

 
                                                                                 

Non-GAAP Adjusted

 

$

4,351.0

   

$

694.8

   

$

414.8

   

$

849.1

   

$

313.1

   

$

-

   

$

-

   

$

(172.4)

   

$

21.2

   

$

198.4

 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
   

Three Months Ended December 31, 2018

 
   

Net

Revenue

   

COGS

   

Research & Development

   

Selling & Marketing

   

General & Administrative

   

Amortization

   

Asset sales &
Impairments,
net

   

Interest

expense,

net

   

Other

income

(expense)

   

Income

taxes

 

GAAP

 

$

4,079.7

   

$

590.0

   

$

678.1

   

$

841.6

   

$

352.0

   

$

1,569.1

   

$

5,433.0

   

$

(198.6)

   

$

(9.9)

   

$

(1,296.7)

 
                                                                                 

Purchase accounting impact on stock-based compensation for
acquired awards

   

-

     

(0.3)

     

(0.6)

     

(1.4)

     

(0.4)

     

-

     

-

     

-

     

-

     

-

 

Severance due to integration of acquired entities

   

-

     

-

     

(0.6)

     

-

     

(2.5)

     

-

     

-

     

-

     

-

     

-

 

Non-acquisition related severance and restructuring

   

-

     

(5.2)

     

(0.1)

     

(20.3)

     

0.2

     

-

     

-

     

-

     

-

     

-

 

Costs associated with disposed businesses

   

-

     

0.5

     

-

     

0.2

     

(1.3)

     

-

     

-

     

-

     

-

     

-

 

Integration charges of acquired businesses

   

-

     

(0.1)

     

0.2

     

-

     

(10.4)

     

-

     

-

     

-

     

-

     

-

 

Milestones and upfront expenses for asset acquisitions

                                                                               

Bonti, Inc.

   

-

     

-

     

(196.6)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Editas Medicine, Inc.

   

-

     

-

     

(25.0)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Other

   

-

     

-

     

(16.5)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Accretion and fair-value adjustments to contingent
consideration

   

-

     

(3.7)

     

(2.9)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Non-cash amortization of debt premium recognized in
purchase accounting

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

(5.5)

     

-

     

-

 

Impairment of Kybella® intangible asset

   

-

     

-

     

-

     

-

     

-

     

-

     

(1,643.8)

     

-

     

-

     

-

 

Impairment of TrueTear® intangible asset

   

-

     

-

     

-

     

-

     

-

     

-

     

(187.6)

     

-

     

-

     

-

 

Impairment of goodwill

   

-

     

-

     

-

     

-

     

-

     

-

     

(2,841.1)

     

-

     

-

     

-

 

Impairment of Anti-Infectives held for sale

   

-

     

-

     

-

     

-

     

-

     

-

     

(771.7)

     

-

     

-

     

-

 

Asset sales and impairments, other

   

-

     

-

     

-

     

-

     

-

     

-

     

25.5

     

-

     

-

     

-

 

Impairment of assets held for sale

   

-

     

-

     

-

     

-

     

-

     

-

     

(14.2)

     

-

     

-

     

-

 

Loss on bond repurchases

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

(13.9)

     

-

 

Litigation settlement related charges

   

-

     

-

     

-

     

-

     

(16.4)

     

-

     

-

     

-

     

-

     

-

 

Other adjustments

   

-

     

0.1

     

0.1

     

-

     

(0.9)

     

(1,569.1)

     

(0.1)

     

(0.1)

     

(2.0)

     

-

 

Income taxes on pre-tax adjustments

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

658.8

 

Discrete income tax events

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

879.8

 
                                                                                 

Non-GAAP Adjusted

 

$

4,079.7

   

$

581.3

   

$

436.1

   

$

820.1

   

$

320.3

   

$

-

   

$

-

   

$

(204.2)

   

$

(25.8)

   

$

241.9

 
                                                                                 

The non-GAAP income tax expense is determined based on our pre-tax income, adjusted for non-GAAP items on a jurisdiction by jurisdiction basis. The non-GAAP effective tax rate in the three months ended December 31, 2019 was impacted by income earned in jurisdictions with tax rates lower than the Irish statutory rate, partially offset by U.S. income taxed at rates higher than the Irish statutory rate.

 

The non-GAAP effective tax rate for the three months ended December 31, 2019 excludes a net discrete tax benefit of $63.2 million related to a change in valuation allowance and the tax effects of integration activities.

 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
   

Twelve Months Ended December 31, 2019

 
   

Net

Revenue

   

COGS

   

Research &

Development

   

Selling &

Marketing

   

General &

Administrative

   

Amortization

   

Asset sales &

Impairments,
net

   

Interest

expense,

net

   

Other

income

(expense)

   

Income

taxes

 

GAAP

 

$

16,088.9

   

$

2,493.1

   

$

1,812.0

   

$

3,461.7

   

$

2,481.8

   

$

5,856.6

   

$

4,429.0

   

$

(706.2)

   

$

32.8

   

$

146.4

 
                                                                                 

Purchase accounting impact on stock-based compensation for
acquired awards

   

-

     

(0.9)

     

(1.1)

     

(2.8)

     

(0.9)

     

-

     

-

     

-

     

-

     

-

 

Severance due to integration of acquired entities

   

-

     

-

     

-

     

-

     

(0.8)

     

-

     

-

     

-

     

-

     

-

 

Non-acquisition related severance and restructuring

   

-

     

(8.3)

     

0.9

     

(4.0)

     

(4.3)

     

-

     

-

     

-

     

-

     

-

 

Costs associated with disposed businesses

   

-

     

-

     

-

     

-

     

(0.3)

     

-

     

-

     

-

     

-

     

-

 

Integration charges of acquired businesses

   

-

     

(0.2)

     

(5.4)

     

(1.5)

     

(23.2)

     

-

     

-

     

-

     

-

     

-

 

Costs associated with the AbbVie transaction

   

-

     

(4.6)

     

(5.0)

     

(49.9)

     

(86.7)

     

-

     

-

     

-

     

-

     

-

 

Milestones and upfront expenses for asset acquisitions

                                                                               

Akarna Therapeutics, Ltd

   

-

     

-

     

(10.0)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

RetroSense Therapeutics, LLC

   

-

     

-

     

(20.0)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Other

   

-

     

-

     

(53.2)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Accretion and fair-value adjustments to contingent
consideration

   

-

     

(44.6)

     

(9.5)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Non-cash amortization of debt premium recognized in
purchase accounting

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

(22.2)

     

-

     

-

 

Impairment of goodwill

   

-

     

-

     

-

     

-

     

-

     

-

     

(3,552.8)

     

-

     

-

     

-

 

Impairment of Anti-Infectives

   

-

     

-

     

-

     

-

     

-

     

-

     

(129.4)

     

-

     

-

     

-

 

Impairment of IPR&D products acquired in the Allergan
Acquisition

   

-

     

-

     

-

     

-

     

-

     

-

     

(182.0)

     

-

     

-

     

-

 

Impairment of IPR&D products acquired in the Vitae
Acquisition

   

-

     

-

     

-

     

-

     

-

     

-

     

(78.0)

     

-

     

-

     

-

 

Impairment of IPR&D products acquired in the Tobira
Acquisition

   

-

     

-

     

-

     

-

     

-

     

-

     

(176.0)

     

-

     

-

     

-

 

Impairment of Carafate intangible asset

   

-

     

-

     

-

     

-

     

-

     

-

     

(314.0)

     

-

     

-

     

-

 

Asset sales and impairments, other

   

-

     

-

     

-

     

-

     

-

     

-

     

3.2

     

-

     

-

     

-

 

Litigation settlement related charges

   

-

     

-

     

-

     

-

     

(1,167.3)

     

-

     

-

     

-

     

-

     

-

 

Milestone component of ongoing intellectual property
agreement

   

(25.0)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Other adjustments

   

-

     

(0.2)

     

(0.1)

     

-

     

(1.2)

     

(5,856.6)

     

-

     

-

     

(0.3)

     

-

 

Income taxes on pre-tax adjustments

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

1,022.5

 

Discrete income tax events

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

(394.0)

 
                                                                                 

Non-GAAP Adjusted

 

$

16,063.9

   

$

2,434.3

   

$

1,708.6

   

$

3,403.5

   

$

1,197.1

   

$

-

   

$

-

   

$

(728.4)

   

$

32.5

   

$

774.9

 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
                                                                                 
   

Twelve Months Ended December 31, 2018

 
   

Net

Revenue

   

COGS

   

Research & Development

   

Selling & Marketing

   

General & Administrative

   

Amortization

   

Asset sales &

 Impairments,
net

   

Interest

expense,

net

   

Other

income

(expense)

   

Income

taxes

 

GAAP

 

$

15,787.4

   

$

2,191.4

   

$

2,266.2

   

$

3,250.6

   

$

1,271.2

   

$

6,552.3

   

$

6,503.3

   

$

(866.0)

   

$

256.7

   

$

(1,770.7)

 
                                                                                 

Purchase accounting impact on stock-based compensation for
acquired awards

   

-

     

(2.1)

     

(4.8)

     

(8.6)

     

(2.9)

     

-

     

-

     

-

     

-

     

-

 

Severance due to integration of acquired entities

   

-

     

-

     

(0.6)

     

(0.7)

     

(3.3)

     

-

     

-

     

-

     

-

     

-

 

Non-acquisition related severance and restructuring

   

-

     

(33.7)

     

(1.9)

     

(38.8)

     

(5.4)

     

-

     

(13.6)

     

-

     

-

     

-

 

Costs associated with disposed businesses

   

-

     

(1.0)

     

-

     

0.2

     

(4.1)

     

-

     

-

     

-

     

-

     

-

 

Integration charges of acquired businesses

   

-

     

(0.3)

     

(0.6)

     

(1.0)

     

(43.5)

     

-

     

-

     

-

     

-

     

-

 

Milestones and upfront expenses for asset acquisitions

                                                                               

Elastagen Pty Ltd

   

-

     

-

     

(96.1)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

AstraZeneca plc

   

-

     

-

     

(90.0)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Merck & Co.

   

-

     

-

     

(115.0)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Chase Pharmaceuticals Corporation

   

-

     

-

     

(75.0)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Repros Therapeutics, Inc.

   

-

     

-

     

(33.2)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Bonti, Inc.

   

-

     

-

     

(196.6)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Editas Medicine, Inc.

   

-

     

-

     

(40.0)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Other

   

-

     

-

     

(33.0)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Accretion and fair-value adjustments to contingent
consideration

   

-

     

111.7

     

(5.1)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Non-cash amortization of debt premium recognized in
purchase accounting

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

(21.2)

     

-

     

-

 

Impairment of Kybella® intangible asset

   

-

     

-

     

-

     

-

     

-

     

-

     

(1,643.8)

     

-

     

-

     

-

 

Impairment of TrueTear® intangible asset

   

-

     

-

     

-

     

-

     

-

     

-

     

(187.6)

     

-

     

-

     

-

 

Impairment of goodwill

   

-

     

-

     

-

     

-

     

-

     

-

     

(2,841.1)

     

-

     

-

     

-

 

Impairment of Anti-Infectives held for sale

   

-

     

-

     

-

     

-

     

-

     

-

     

(771.7)

     

-

     

-

     

-

 

Impairment of IPR&D products acquired in the Allergan
Acquisition

   

-

     

-

     

-

     

-

     

-

     

-

     

(236.0)

     

-

     

-

     

-

 

Impairment of IPR&D products acquired in the Vitae
Acquisition

   

-

     

-

     

-

     

-

     

-

     

-

     

(40.0)

     

-

     

-

     

-

 

Impairment of assets held for sale

   

-

     

-

     

-

     

-

     

-

     

-

     

(266.2)

     

-

     

-

     

-

 

Impairment of RORgt IPR&D product

   

-

     

-

     

-

     

-

     

-

     

-

     

(522.0)

     

-

     

-

     

-

 

Asset sales and impairments, other

   

-

     

-

     

-

     

-

     

-

     

-

     

18.4

     

-

     

-

     

-

 

Gain on Teva securities

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

(60.6)

     

-

 

Milestone component of ongoing intellectual property
agreement

   

(25.0)

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

 

Gain on the sale of divestiture

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

(182.6)

     

-

 

Gain on bond repurchases

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

(15.6)

     

-

 

Litigation settlement related charges

   

-

     

-

     

-

     

-

     

(56.8)

     

-

     

-

     

-

     

-

     

-

 

Other adjustments

   

-

     

0.1

     

0.2

     

-

     

(2.0)

     

(6,552.3)

     

0.3

     

(0.1)

     

(5.7)

     

-

 

Income taxes on pre-tax adjustments

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

1,506.1

 

Discrete income tax events

   

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

-

     

1,213.8

 
                                                                                 

Non-GAAP Adjusted

 

$

15,762.4

   

$

2,266.1

   

$

1,574.5

   

$

3,201.7

   

$

1,153.2

   

$

-

   

$

-

   

$

(887.3)

   

$

(7.8)

   

$

949.2

 
                                                                                 

The non-GAAP income tax expense is determined based on our pre-tax income, adjusted for non-GAAP items on a jurisdiction by jurisdiction basis. The non-GAAP effective tax rate in the twelve months ended December 31, 2019 was impacted by income earned in jurisdictions with tax rates lower than the Irish statutory rate, partially offset by U.S. income taxed at rates higher than the Irish statutory rate.

 

The non-GAAP effective tax rate for the twelve months ended December 31, 2019 excludes a net discrete tax detriment of $394.0 million related to a change in valuation allowance partially offset by the tax impacts of U.S. capital losses and changes in the applicable tax rates on certain temporary differences.

 
                                                                                 
 

 

 

The following table presents a reconciliation of Allergan plc's reported net income / (loss) attributable to shareholders and diluted earnings per share to non-GAAP performance net income and non-GAAP performance net income per share for the three and twelve months ended December 31, 2019 and 2018:

 

Table 6

 

ALLERGAN PLC

             

RECONCILIATION TABLE

             

(Unaudited; in millions except per share amounts)

             
                                 
   

Three Months Ended

   

Twelve Months Ended

 
   

December 31,

   

December 31,

 
   

2019

   

2018

   

2019

   

2018

 
                                 
                                 

GAAP to Non-GAAP Performance net income calculation

                               
                                 

GAAP (loss) attributable to ordinary shareholders

 

$

(317.2)

   

$

(4,299.9)

   

$

(5,271.0)

   

$

(5,096.4)

 

Adjusted for:

                               

Amortization

   

1,517.5

     

1,569.1

     

5,856.6

     

6,552.3

 

Acquisition, divestiture and licensing (income) /
charges

   

112.9

     

249.9

     

220.5

     

485.7

 

Accretion and fair-value adjustments to contingent
consideration

   

4.6

     

6.6

     

54.1

     

(106.6)

 

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

   

314.0

     

5,433.0

     

4,429.0

     

6,503.3

 

Other

   

-

     

(15.9)

     

-

     

(42.6)

 

Non-acquisition restructurings, including Global Supply
Chain initiatives

   

(0.6)

     

25.4

     

15.7

     

79.8

 

Legal settlements

   

401.6

     

16.4

     

1,167.3

     

56.8

 

Income taxes on items above and other discrete
income tax adjustments

   

(303.1)

     

(1,538.6)

     

(628.5)

     

(2,719.9)

 

Non-GAAP performance net income attributable to
shareholders

 

$

1,729.7

   

$

1,446.0

   

$

5,843.7

   

$

5,712.4

 
                                 

Diluted earnings per share

                               
                                 

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

 

$

(0.97)

   

$

(12.83)

   

$

(16.02)

   

$

(15.12)

 
                                 

Non-GAAP performance net income per share attributable
to shareholders

 

$

5.22

   

$

4.29

   

$

17.64

   

$

16.69

 
                                 

Basic weighted average ordinary shares outstanding

   

328.4

     

335.1

     

329.0

     

337.0

 

Effect of dilutive securities:

                               

Dilutive shares

   

2.9

     

2.3

     

2.2

     

5.2

 

Diluted weighted average ordinary shares outstanding

   

331.3

     

337.4

     

331.2

     

342.2

 
               
               
 

 

 

We define adjusted EBITDA as an amount equal to consolidated net income / (loss) 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) attributable to shareholders for the three and twelve months ended December 31, 2019 and 2018 to adjusted EBITDA and non-GAAP operating income:

   

Table 7

   

ALLERGAN PLC

               

ADJUSTED EBITDA and NON-GAAP OPERATING INCOME, RECONCILIATION TABLE

               

(Unaudited; in millions)

               
                 
   

Three Months Ended

   

Twelve Months Ended

   
   

December 31,

   

December 31,

   
   

2019

   

2018

   

2019

   

2018

   
                                   
                                   

GAAP (loss) attributable to ordinary shareholders

 

$

(317.2)

   

$

(4,299.9)

   

$

(5,271.0)

   

$

(5,096.4)

   

Plus:

                                 

Interest expense

   

191.9

     

210.2

     

783.0

     

911.2

   

Interest income

   

(25.3)

     

(11.6)

     

(76.8)

     

(45.2)

   

Provision / (benefit) for income taxes

   

(104.7)

     

(1,296.7)

     

146.4

     

(1,770.7)

   

Depreciation

   

53.9

     

46.6

     

204.5

     

196.3

   

Amortization

   

1,517.5

     

1,569.1

     

5,856.6

     

6,552.3

   

EBITDA

 

$

1,316.1

   

$

(3,782.3)

   

$

1,642.7

   

$

747.5

   

Adjusted for:

                                 

Acquisition, divestiture and licensing charges

   

117.5

     

252.7

     

237.0

     

480.3

   

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

   

314.0

     

5,433.0

     

4,429.0

     

6,503.3

   

Other

   

-

     

(15.9)

     

-

     

(42.6)

   

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

   

(0.6)

     

25.4

     

15.7

     

75.6

   

Legal settlements

   

401.6

     

16.4

     

1,167.3

     

56.8

   

Accretion and fair-value adjustments to contingent consideration

   

4.6

     

6.6

     

54.1

     

(106.6)

   

Share-based compensation including cash settlements

   

52.6

     

54.6

     

214.3

     

239.8

   

Adjusted EBITDA

 

$

2,205.8

   

$

1,990.5

   

$

7,760.1

   

$

7,954.1

   

Adjusted for:

                                 

Depreciation

   

(53.9)

     

(46.6)

     

(204.5)

     

(192.1)

   

Other income (expense) related to fair value accounting

   

(21.2)

     

25.8

     

(32.5)

     

7.0

   

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

   

(51.4)

     

(51.9)

     

(208.6)

     

(213.2)

   

Non-GAAP Operating Income

 

$

2,079.3

   

$

1,917.8

   

$

7,314.5

   

$

7,555.8

   
 

 

 

The following table details Allergan plc's segment contribution reconciled to the non-GAAP contribution for the same financial statement line items for the three and twelve months ended December 31, 2019 and 2018.

 
                                                                                 
                                                                                 
                                 

Table 8

 

ALLERGAN PLC

 

Segment Contribution to Non-GAAP Allergan plc Contribution

 

(Unaudited; $ in millions)

 
                                                                                 
   

Three Months Ended December 31, 2019

   

Three Months Ended December 31, 2018

 
 

US Specialized

Therapeutics

Segment

   

US General

Medicine Segment

   

International

Segment

   

Corporate

   

Total

   

US Specialized

Therapeutics

Segment

   

US General

Medicine Segment

   

International

Segment

   

Corporate

   

Total

 

Net revenues

$

1,821.2

   

$

1,610.7

   

$

917.7

   

$

1.4

   

$

4,351.0

   

$

1,808.8

   

$

1,397.9

   

$

870.2

   

$

2.8

   

$

4,079.7

 

Operating expenses:

                                                                             

Cost of sales(1)

 

156.0

     

287.8

     

148.4

     

102.6

     

694.8

     

139.3

     

195.1

     

146.1

     

100.8

     

581.3

 

Selling and marketing

 

376.1

     

256.4

     

216.6

     

-

     

849.1

     

378.1

     

211.1

     

230.8

     

0.1

     

820.1

 

General and administrative

 

47.8

     

41.5

     

36.9

     

186.9

     

313.1

     

59.7

     

45.1

     

41.3

     

174.2

     

320.3

 

Segment contribution

$

1,241.3

   

$

1,025.0

   

$

515.8

   

$

(288.1)

   

$

2,494.0

   

$

1,231.7

   

$

946.6

   

$

452.0

   

$

(272.3)

   

$

2,358.0

 

Segment margin

 

68.2

%

   

63.6

%

   

56.2

%

 

n.m.

     

57.3

%

   

68.1

%

   

67.7

%

   

51.9

%

 

n.m.

     

57.8

%

Segment gross margin(2)

 

91.4

%

   

82.1

%

   

83.8

%

 

n.m.

     

84.0

%

   

92.3

%

   

86.0

%

   

83.2

%

 

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.

 
                                                                                 
   

Twelve Months Ended December 31, 2019

   

Twelve Months Ended December 31, 2018

 
 

US Specialized

Therapeutics

Segment

   

US General

Medicine Segment

   

International

Segment

   

Corporate

   

Total

   

US Specialized

Therapeutics

Segment

   

US General

Medicine Segment

   

International

Segment

   

Corporate

   

Total

 

Net revenues

$

6,820.0

   

$

5,834.9

   

$

3,402.0

   

$

7.0

   

$

16,063.9

   

$

6,920.3

   

$

5,322.9

   

$

3,504.7

   

$

14.5

   

$

15,762.4

 

Operating expenses:

                                                                             

Cost of sales(1)

 

578.2

     

954.8

     

548.3

     

353.0

     

2,434.3

     

565.2

     

799.1

     

537.1

     

364.7

     

2,266.1

 

Selling and marketing

 

1,490.4

     

978.2

     

934.7

     

0.2

     

3,403.5

     

1,348.3

     

924.6

     

928.7

     

0.1

     

3,201.7

 

General and administrative

 

190.1

     

160.7

     

117.0

     

729.3

     

1,197.1

     

205.3

     

156.4

     

141.7

     

649.8

     

1,153.2

 

Segment contribution

$

4,561.3

   

$

3,741.2

   

$

1,802.0

   

$

(1,075.5)

   

$

9,029.0

   

$

4,801.5

   

$

3,442.8

   

$

1,897.2

   

$

(1,000.1)

   

$

9,141.4

 

Segment margin

 

66.9

%

   

64.1

%

   

53.0

%

 

n.m.

     

56.2

%

   

69.4

%

   

64.7

%

   

54.1

%

 

n.m.

     

58.0

%

Segment gross margin(2)

 

91.5

%

   

83.6

%

   

83.9

%

 

n.m.

     

84.8

%

   

91.8

%

   

85.0

%

   

84.7

%

 

n.m.

     

85.6

%

                                                                                 

(1) Excludes amortization and impairment of acquired intangibles including product rights.

 

(2) Defined as net revenues less segment related cost of sales as a percentage of net revenues.

 
                                                                                 
 

 

 

The following table details Allergan plc's product revenue for significant promoted products within the US Specialized Therapeutics segment for the three and twelve months ended December 31, 2019 and 2018.

 

Table 9

 

ALLERGAN PLC

 

US Specialized Therapeutics Product Revenue

 

(Unaudited; in millions)

 
                       
   

Three Months Ended December 31,

   

Change

 
   

2019

   

2018

   

Dollars

   

%

 

Total Eye Care

 

$

587.0

   

$

587.3

   

$

(0.3)

     

(0.1)

%

Restasis®

   

309.0

     

325.0

     

(16.0)

     

(4.9)

%

Alphagan®/Combigan®

   

94.5

     

97.7

     

(3.2)

     

(3.3)

%

Lumigan®/Ganfort®

   

81.9

     

74.0

     

7.9

     

10.7

%

Ozurdex®

   

31.6

     

29.3

     

2.3

     

7.8

%

Eye Drops

   

61.2

     

47.9

     

13.3

     

27.8

%

Other Eye Care

   

8.8

     

13.4

     

(4.6)

     

(34.3)

%

Total Medical Aesthetics

   

742.2

     

738.3

     

3.9

     

0.5

%

Facial Aesthetics

   

444.5

     

423.7

     

20.8

     

4.9

%

Botox® Cosmetics

   

271.8

     

258.1

     

13.7

     

5.3

%

Juvederm® Collection

   

166.4

     

158.4

     

8.0

     

5.1

%

Kybella®

   

6.3

     

7.2

     

(0.9)

     

(12.5)

%

Plastic Surgery

   

67.1

     

68.2

     

(1.1)

     

(1.6)

%

Breast Implants

   

67.1

     

68.2

     

(1.1)

     

(1.6)

%

Regenerative Medicine

   

132.7

     

124.7

     

8.0

     

6.4

%

Alloderm®

   

104.7

     

94.9

     

9.8

     

10.3

%

Other Regenerative Medicine

   

28.0

     

29.8

     

(1.8)

     

(6.0)

%

Body Contouring

   

53.3

     

81.3

     

(28.0)

     

(34.4)

%

Coolsculpting® Systems & Add On
Applicators

   

16.9

     

26.8

     

(9.9)

     

(36.9)

%

Coolsculpting® Consumables

   

36.4

     

54.5

     

(18.1)

     

(33.2)

%

Skin Care(3)

   

44.6

     

40.4

     

4.2

     

10.4

%

Total Medical Dermatology

   

13.0

     

4.5

     

8.5

     

188.9

%

Aczone®

   

2.5

     

0.6

     

1.9

   

n.m.

 

Other Medical Dermatology(4)

   

10.5

     

3.9

     

6.6

     

169.2

%

Total Neuroscience & Urology

   

465.0

     

452.2

     

12.8

     

2.8

%

Botox® Therapeutics

   

463.0

     

433.3

     

29.7

     

6.9

%

Rapaflo®

   

2.0

     

18.9

     

(16.9)

     

(89.4)

%

Other Revenues

   

14.0

     

26.5

     

(12.5)

     

(47.2)

%

Net Revenues

 

$

1,821.2

   

$

1,808.8

   

$

12.4

     

0.7

%

                                 

Operating expenses:

                               

Cost of sales(1)

   

156.0

     

139.3

     

16.7

     

12.0

%

Selling and marketing

   

376.1

     

378.1

     

(2.0)

     

(0.5)

%

General and administrative

   

47.8

     

59.7

     

(11.9)

     

(19.9)

%

Segment contribution

 

$

1,241.3

   

$

1,231.7

   

$

9.6

     

0.8

%

Segment margin

   

68.2

%

   

68.1

%

           

0.1

%

Segment gross margin(2)

   

91.4

%

   

92.3

%

           

(0.9)

%

(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 $0.3 million which were previously disclosed separately in the three months ended December 31, 2018.

 
                       
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
   

Twelve Months Ended December 31,

   

Change

 
   

2019

   

2018

   

Dollars

   

%

 

Total Eye Care

 

$

2,182.4

   

$

2,235.7

   

$

(53.3)

     

(2.4)

%

Restasis®

   

1,138.4

     

1,197.0

     

(58.6)

     

(4.9)

%

Alphagan®/Combigan®

   

360.0

     

375.4

     

(15.4)

     

(4.1)

%

Lumigan®/Ganfort®

   

269.2

     

291.8

     

(22.6)

     

(7.7)

%

Ozurdex®

   

125.5

     

111.0

     

14.5

     

13.1

%

Eye Drops

   

230.4

     

202.7

     

27.7

     

13.7

%

Other Eye Care

   

58.9

     

57.8

     

1.1

     

1.9

%

Total Medical Aesthetics

   

2,772.0

     

2,774.6

     

(2.6)

     

(0.1)

%

Facial Aesthetics

   

1,606.2

     

1,487.3

     

118.9

     

8.0

%

Botox® Cosmetics

   

991.3

     

907.3

     

84.0

     

9.3

%

Juvederm® Collection

   

587.5

     

548.2

     

39.3

     

7.2

%

Kybella®

   

27.4

     

31.8

     

(4.4)

     

(13.8)

%

Plastic Surgery

   

254.4

     

263.0

     

(8.6)

     

(3.3)

%

Breast Implants

   

254.4

     

263.0

     

(8.6)

     

(3.3)

%

Regenerative Medicine

   

505.3

     

523.9

     

(18.6)

     

(3.6)

%

Alloderm®

   

395.9

     

407.3

     

(11.4)

     

(2.8)

%

Other Regenerative Medicine

   

109.4

     

116.6

     

(7.2)

     

(6.2)

%

Body Contouring

   

248.1

     

361.6

     

(113.5)

     

(31.4)

%

Coolsculpting® Systems & Add On
Applicators

   

62.8

     

126.3

     

(63.5)

     

(50.3)

%

Coolsculpting® Consumables

   

185.3

     

235.3

     

(50.0)

     

(21.2)

%

Skin Care(3)

   

158.0

     

138.8

     

19.2

     

13.8

%

Total Medical Dermatology

   

44.0

     

115.5

     

(71.5)

     

(61.9)

%

Aczone®

   

9.3

     

55.1

     

(45.8)

     

(83.1)

%

Other Medical Dermatology(4)

   

34.7

     

60.4

     

(25.7)

     

(42.5)

%

Total Neuroscience & Urology

   

1,762.7

     

1,720.4

     

42.3

     

2.5

%

Botox® Therapeutics

   

1,739.2

     

1,638.5

     

100.7

     

6.1

%

Rapaflo®

   

23.5

     

81.9

     

(58.4)

     

(71.3)

%

Other Revenues

   

58.9

     

74.1

     

(15.2)

     

(20.5)

%

Net Revenues

 

$

6,820.0

   

$

6,920.3

   

$

(100.3)

     

(1.4)

%

                                 

Operating expenses:

                               

Cost of sales(1)

   

578.2

     

565.2

     

13.0

     

2.3

%

Selling and marketing

   

1,490.4

     

1,348.3

     

142.1

     

10.5

%

General and administrative

   

190.1

     

205.3

     

(15.2)

     

(7.4)

%

Segment contribution

 

$

4,561.3

   

$

4,801.5

   

$

(240.2)

     

(5.0)

%

Segment margin

   

66.9

%

   

69.4

%

           

(2.5)

%

Segment gross margin(2)

   

91.5

%

   

91.8

%

           

(0.3)

%

(1)  Excludes amortization and impairment of acquired intangibles including product rights, as well as indirect cost of sales not attributable to segment results.

 

(2) Defined as net revenues less segment related cost of sales as a percentage of net revenues.

 

(3) Includes SkinMedica® and Latisse®.

 

(4) Includes Tazorac® sales of $25.4 million which were previously disclosed separately in the twelve months ended December 31, 2018.

 
   
 

 

 

The following table details Allergan plc's product revenue for significant promoted products within the US General Medicine segment for the three and twelve months ended December 31, 2019 and 2018.

 

Table 10

 

ALLERGAN PLC

 

US General Medicine Product Revenue

 

(Unaudited; in millions)

 
                       
   

Three Months Ended December 31,

   

Change

 
   

2019

   

2018

   

Dollars

   

%

 

Total Central Nervous System (CNS)

 

$

457.0

   

$

316.1

   

$

140.9

     

44.6

%

Vraylar®

   

283.1

     

150.5

     

132.6

     

88.1

%

Viibryd®/Fetzima®

   

114.2

     

95.5

     

18.7

     

19.6

%

Saphris®

   

36.3

     

36.8

     

(0.5)

     

(1.4)

%

Namzaric®

   

20.2

     

22.6

     

(2.4)

     

(10.6)

%

Namenda ®(3)

   

3.2

     

10.7

     

(7.5)

     

(70.1)

%

Total Gastrointestinal (GI)

   

434.1

     

449.8

     

(15.7)

     

(3.5)

%

Linzess®

   

231.2

     

205.2

     

26.0

     

12.7

%

Zenpep®

   

80.8

     

66.8

     

14.0

     

21.0

%

Carafate®/Sulcrate®

   

46.9

     

54.1

     

(7.2)

     

(13.3)

%

Viberzi®

   

49.8

     

48.9

     

0.9

     

1.8

%

Asacol®/Delzicol®

   

8.5

     

27.9

     

(19.4)

     

(69.5)

%

Canasa®/Salofalk®

   

7.5

     

38.8

     

(31.3)

     

(80.7)

%

Other GI

   

9.4

     

8.1

     

1.3

     

16.0

%

Total Women's Health

   

232.8

     

213.9

     

18.9

     

8.8

%

Lo Loestrin®

   

156.2

     

143.8

     

12.4

     

8.6

%

Liletta®

   

22.5

     

14.6

     

7.9

     

54.1

%

Other Women's Health(4)(5)

   

54.1

     

55.5

     

(1.4)

     

(2.5)

%

Total Anti-Infectives

   

104.3

     

78.8

     

25.5

     

32.4

%

Teflaro®

   

38.1

     

30.0

     

8.1

     

27.0

%

Avycaz®

   

30.7

     

24.6

     

6.1

     

24.8

%

Dalvance®

   

26.4

     

17.3

     

9.1

     

52.6

%

Other Anti-Infectives

   

9.1

     

6.9

     

2.2

     

31.9

%

Diversified Brands

   

320.3

     

300.1

     

20.2

     

6.7

%

Bystolic®/Byvalson®

   

169.6

     

151.7

     

17.9

     

11.8

%

Armour Thyroid

   

57.4

     

53.4

     

4.0

     

7.5

%

Savella®

   

21.5

     

23.6

     

(2.1)

     

(8.9)

%

Other Diversified Brands

   

71.8

     

71.4

     

0.4

     

0.6

%

Other Revenues

   

62.2

     

39.2

     

23.0

     

58.7

%

Net revenues

 

$

1,610.7

   

$

1,397.9

   

$

212.8

     

15.2

%

                                 

Operating expenses:

                               

Cost of sales(1)

   

287.8

     

195.1

     

92.7

     

47.5

%

Selling and marketing

   

256.4

     

211.1

     

45.3

     

21.5

%

General and administrative

   

41.5

     

45.1

     

(3.6)

     

(8.0)

%

Segment contribution

 

$

1,025.0

   

$

946.6

   

$

78.4

     

8.3

%

Segment margin

   

63.6

%

   

67.7

%

           

(4.1)

%

Segment gross margin(2)

   

82.1

%

   

86.0

%

           

(3.9)

%

(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 $14.7 million which were previously disclosed separately in the three months ended December 31, 2018

 

(5) Includes Minastrin® 24 sales of $2.9 million which were previously disclosed separately in the three months ended December 31, 2018

 
                                 
                                 
                                 
                                 
                                 
   

Twelve Months Ended December 31,

   

Change

 
   

2019

   

2018

   

Dollars

   

%

 

Total Central Nervous System (CNS)

 

$

1,516.3

   

$

1,156.0

   

$

360.3

     

31.2

%

Vraylar®

   

857.5

     

487.1

     

370.4

     

76.0

%

Viibryd®/Fetzima®

   

412.1

     

342.4

     

69.7

     

20.4

%

Saphris®

   

135.3

     

139.7

     

(4.4)

     

(3.1)

%

Namzaric®

   

88.6

     

115.8

     

(27.2)

     

(23.5)

%

Namenda ®(3)

   

22.8

     

71.0

     

(48.2)

     

(67.9)

%

Total Gastrointestinal (GI)

   

1,634.2

     

1,723.7

     

(89.5)

     

(5.2)

%

Linzess®

   

803.2

     

761.1

     

42.1

     

5.5

%

Zenpep®

   

288.0

     

237.3

     

50.7

     

21.4

%

Carafate®/Sulcrate®

   

212.5

     

217.8

     

(5.3)

     

(2.4)

%

Viberzi®

   

187.9

     

176.5

     

11.4

     

6.5

%

Asacol®/Delzicol®

   

76.7

     

130.8

     

(54.1)

     

(41.4)

%

Canasa®/Salofalk®

   

31.5

     

169.2

     

(137.7)

     

(81.4)

%

Other GI

   

34.4

     

31.0

     

3.4

     

11.0

%

Total Women's Health

   

895.7

     

786.8

     

108.9

     

13.8

%

Lo Loestrin®

   

588.9

     

527.7

     

61.2

     

11.6

%

Liletta®

   

79.1

     

50.9

     

28.2

     

55.4

%

Other Women's Health(4)(5)

   

227.7

     

208.2

     

19.5

     

9.4

%

Total Anti-Infectives

   

377.1

     

304.4

     

72.7

     

23.9

%

Teflaro®

   

147.0

     

128.0

     

19.0

     

14.8

%

Avycaz®

   

116.7

     

94.6

     

22.1

     

23.4

%

Dalvance®

   

81.9

     

56.1

     

25.8

     

46.0

%

Other Anti-Infectives

   

31.5

     

25.7

     

5.8

     

22.6

%

Diversified Brands

   

1,202.8

     

1,156.0

     

46.8

     

4.0

%

Bystolic®/Byvalson®

   

600.6

     

583.8

     

16.8

     

2.9

%

Armour Thyroid

   

218.5

     

198.8

     

19.7

     

9.9

%

Savella®

   

88.5

     

85.0

     

3.5

     

4.1

%

Other Diversified Brands

   

295.2

     

288.4

     

6.8

     

2.4

%

Other Revenues

   

208.8

     

196.0

     

12.8

     

6.5

%

Net revenues

 

$

5,834.9

   

$

5,322.9

   

$

512.0

     

9.6

%

                                 

Operating expenses:

                               

Cost of sales(1)

   

954.8

     

799.1

     

155.7

     

19.5

%

Selling and marketing

   

978.2

     

924.6

     

53.6

     

5.8

%

General and administrative

   

160.7

     

156.4

     

4.3

     

2.7

%

Segment contribution

 

$

3,741.2

   

$

3,442.8

   

$

298.4

     

8.7

%

Segment margin

   

64.1

%

   

64.7

%

           

(0.6)

%

Segment gross margin(2)

   

83.6

%

   

85.0

%

           

(1.4)

%

(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 Namenda XR® and Namenda® IR.

 

(4) Includes Estrace® Cream sales of $49.0 million which were previously disclosed separately in the twelve months ended December 31, 2018

 

(5) Includes Minastrin® 24 sales of $9.5 million which were previously disclosed separately in the twelve months ended December 31, 2018

 
   
                                 
 

 

 

The following table details Allergan plc's product revenue for significant promoted products within the International segment for the three and twelve months ended December 31, 2019 and 2018.

 

Table 11

 

ALLERGAN PLC

 

International Product Revenue

 

(Unaudited; in millions)

 
                                 
   

Three Months Ended December 31,

   

Change

 
   

2019

   

2018

   

Dollars

   

%

 

Total Eye Care

 

$

319.4

   

$

308.2

   

$

11.2

     

3.6

%

Lumigan®/Ganfort®

   

95.6

     

96.9

     

(1.3)

     

(1.3)

%

Alphagan®/Combigan®

   

43.1

     

46.7

     

(3.6)

     

(7.7)

%

Ozurdex®

   

66.7

     

29.6

     

37.1

     

125.3

%

Eye Drops

   

59.3

     

71.7

     

(12.4)

     

(17.3)

%

Restasis®

   

18.7

     

16.6

     

2.1

     

12.7

%

Other Eye Care

   

36.0

     

46.7

     

(10.7)

     

(22.9)

%

Total Medical Aesthetics

   

412.9

     

396.0

     

16.9

     

4.3

%

Facial Aesthetics

   

364.6

     

332.8

     

31.8

     

9.6

%

Botox® Cosmetics

   

182.9

     

157.8

     

25.1

     

15.9

%

Juvederm® Collection

   

180.9

     

174.0

     

6.9

     

4.0

%

Belkyra® (Kybella®)

   

0.8

     

1.0

     

(0.2)

     

(20.0)

%

Plastic Surgery

   

15.3

     

10.8

     

4.5

     

41.7

%

Breast Implants

   

15.1

     

10.5

     

4.6

     

43.8

%

Other Plastic Surgery

   

0.2

     

0.3

     

(0.1)

     

(33.3)

%

Regenerative Medicine

   

3.4

     

3.9

     

(0.5)

     

(12.8)

%

Alloderm®

   

2.0

     

2.5

     

(0.5)

     

(20.0)

%

Other Regenerative Medicine

   

1.4

     

1.4

     

0.0

     

0.0

%

Body Contouring

   

25.4

     

44.9

     

(19.5)

     

(43.4)

%

Coolsculpting® Systems & Add On
Applicators

   

8.8

     

21.5

     

(12.7)

     

(59.1)

%

Coolsculpting® Consumables

   

16.6

     

23.4

     

(6.8)

     

(29.1)

%

Skin Care

   

4.2

     

3.6

     

0.6

     

16.7

%

Botox® Therapeutics and Other

   

168.8

     

150.1

     

18.7

     

12.5

%

Botox® Therapeutics

   

102.5

     

96.7

     

5.8

     

6.0

%

Asacol®/Delzicol®

   

8.9

     

10.7

     

(1.8)

     

(16.8)

%

Constella®

   

6.8

     

6.4

     

0.4

     

6.3

%

Other Products

   

50.6

     

36.3

     

14.3

     

39.4

%

Other Revenues

   

16.6

     

15.9

     

0.7

     

4.4

%

Net revenues

 

$

917.7

   

$

870.2

   

$

47.5

     

5.5

%

                                 

Operating expenses:

                               

Cost of sales(1)

   

148.4

     

146.1

     

2.3

     

1.6

%

Selling and marketing

   

216.6

     

230.8

     

(14.2)

     

(6.2)

%

General and administrative

   

36.9

     

41.3

     

(4.4)

     

(10.7)

%

Segment contribution

 

$

515.8

   

$

452.0

   

$

63.8

     

14.1

%

Segment margin

   

56.2

%

   

51.9

%

           

4.3

%

Segment gross margin(2)

   

83.8

%

   

83.2

%

           

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.

 
   
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 
   

Twelve Months Ended December 31,

   

Change

 
   

2019

   

2018

   

Dollars

   

%

 

Total Eye Care

 

$

1,251.1

   

$

1,294.6

   

$

(43.5)

     

(3.4)

%

Lumigan®/Ganfort®

   

360.8

     

392.6

     

(31.8)

     

(8.1)

%

Alphagan®/Combigan®

   

162.0

     

176.0

     

(14.0)

     

(8.0)

%

Ozurdex®

   

274.6

     

187.7

     

86.9

     

46.3

%

Eye Drops

   

235.8

     

279.7

     

(43.9)

     

(15.7)

%

Restasis®

   

50.2

     

64.5

     

(14.3)

     

(22.2)

%

Other Eye Care

   

167.7

     

194.1

     

(26.4)

     

(13.6)

%

Total Medical Aesthetics

   

1,480.8

     

1,533.3

     

(52.5)

     

(3.4)

%

Facial Aesthetics

   

1,331.1

     

1,262.3

     

68.8

     

5.5

%

Botox® Cosmetics

   

671.7

     

641.2

     

30.5

     

4.8

%

Juvederm® Collection

   

656.1

     

614.8

     

41.3

     

6.7

%

Belkyra® (Kybella®)

   

3.3

     

6.3

     

(3.0)

     

(47.6)

%

Plastic Surgery

   

1.8

     

131.5

     

(129.7)

     

(98.6)

%

Breast Implants

   

0.6

     

130.1

     

(129.5)

     

(99.5)

%

Other Plastic Surgery

   

1.2

     

1.4

     

(0.2)

     

(14.3)

%

Regenerative Medicine

   

14.6

     

16.8

     

(2.2)

     

(13.1)

%

Alloderm®

   

7.9

     

8.0

     

(0.1)

     

(1.3)

%

Other Regenerative Medicine

   

6.7

     

8.8

     

(2.1)

     

(23.9)

%

Body Contouring

   

118.7

     

107.5

     

11.2

     

10.4

%

Coolsculpting®Systems & Add On
Applicators

   

42.4

     

43.3

     

(0.9)

     

(2.1)

%

Coolsculpting® Consumables

   

76.3

     

64.2

     

12.1

     

18.8

%

Skin Care

   

14.6

     

15.2

     

(0.6)

     

(3.9)

%

Botox® Therapeutics and Other

   

603.0

     

611.5

     

(8.5)

     

(1.4)

%

Botox® Therapeutics

   

389.1

     

390.4

     

(1.3)

     

(0.3)

%

Asacol®/Delzicol®

   

36.1

     

45.7

     

(9.6)

     

(21.0)

%

Constella®

   

23.8

     

24.1

     

(0.3)

     

(1.2)

%

Other Products

   

154.0

     

151.3

     

2.7

     

1.8

%

Other Revenues

   

67.1

     

65.3

     

1.8

     

2.8

%

Net revenues

 

$

3,402.0

   

$

3,504.7

   

$

(102.7)

     

(2.9)

%

                                 

Operating expenses:

                               

Cost of sales(1)

   

548.3

     

537.1

     

11.2

     

2.1

%

Selling and marketing

   

934.7

     

928.7

     

6.0

     

0.6

%

General and administrative

   

117.0

     

141.7

     

(24.7)

     

(17.4)

%

Segment contribution

 

$

1,802.0

   

$

1,897.2

   

$

(95.2)

     

(5.0)

%

Segment margin

   

53.0

%

   

54.1

%

           

(1.1)

%

Segment gross margin(2)

   

83.9

%

   

84.7

%

           

(0.8)

%

(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.

 
   
     
                                 
                                 
 

 

 

The following table details Allergan plc's non-GAAP product revenues for the three and twelve months ended December 31, 2019 and 2018.

 

ALLERGAN PLC

 

NON GAAP NET REVENUES TOP GLOBAL PRODUCTS

 

(Unaudited; in millions)

Table 12

 
 

Three Months Ended December 31, 2019

   

Three Months Ended December 31, 2018

   

Movement

 
 

US
Specialized
Therapeutics

   

US

General

 Medicine

   

International

   

Corporate

   

Total

   

US Specialized Therapeutics

   

US

General
Medicine

   

International

   

Corporate

   

Total

   

Global Change

   

Global Change Percentage

 
                                                                                               

Botox®

$

734.8

   

$

-

   

$

285.4

   

$

-

     

1,020.2

   

$

691.4

   

$

-

   

$

254.5

   

$

-

   

$

945.9

   

$

74.3

     

7.9

%

Juvederm® Collection

 

166.4

     

-

     

180.9

     

-

     

347.3

     

158.4

     

-

     

174.0

     

-

     

332.4

     

14.9

     

4.5

%

Linzess®/Constella®

 

-

     

231.2

     

6.8

     

-

     

238.0

     

-

     

205.2

     

6.4

     

-

     

211.6

     

26.4

     

12.5

%

Lumigan®/Ganfort®

 

81.9

     

-

     

95.6

     

-

     

177.5

     

74.0

     

-

     

96.9

     

-

     

170.9

     

6.6

     

3.9

%

Bystolic® /Byvalson®

 

-

     

169.6

     

0.6

     

-

     

170.2

     

-

     

151.7

     

0.4

     

-

     

152.1

     

18.1

     

11.9

%

Alphagan®/Combigan®

 

94.5

     

-

     

43.1

     

-

     

137.6

     

97.7

     

-

     

46.7

     

-

     

144.4

     

(6.8)

     

(4.7)

%

Eye Drops

 

61.2

     

-

     

59.3

     

-

     

120.5

     

47.9

     

-

     

71.7

     

-

     

119.6

     

0.9

     

0.8

%

Lo Loestrin®

 

-

     

156.2

     

-

     

-

     

156.2

     

-

     

143.8

     

-

     

-

     

143.8

     

12.4

     

8.6

%

Breast Implants

 

67.1

     

-

     

15.1

     

-

     

82.2

     

68.2

     

-

     

10.5

     

-

     

78.7

     

3.5

     

4.4

%

Viibryd®/Fetzima®

 

-

     

114.2

     

3.6

     

-

     

117.8

     

-

     

95.5

     

2.3

     

-

     

97.8

     

20.0

     

20.4

%

Alloderm®

 

104.7

     

-

     

2.0

     

-

     

106.7

     

94.9

     

-

     

2.5

     

-

     

97.4

     

9.3

     

9.5

%

Vraylar®

 

-

     

283.1

     

-

     

-

     

283.1

     

-

     

150.5

     

-

     

-

     

150.5

     

132.6

     

88.1

%

Coolsculpting® Consumables

 

36.4

     

-

     

16.6

     

-

     

53.0

     

54.5

     

-

     

23.4

     

-

     

77.9

     

(24.9)

     

(32.0)

%

Ozurdex ®

 

31.6

     

-

     

66.7

     

-

     

98.3

     

29.3

     

-

     

29.6

     

-

     

58.9

     

39.4

     

66.9

%

Carafate ® /Sulcrate ®

 

-

     

46.9

     

0.9

     

-

     

47.8

     

-

     

54.1

     

0.7

     

-

     

54.8

     

(7.0)

     

(12.8)

%

Zenpep®

 

-

     

80.8

     

0.5

     

-

     

81.3

     

-

     

66.8

     

0.4

     

-

     

67.2

     

14.1

     

21.0

%

Coolsculpting® Systems & Add On Applicators

 

16.9

     

-

     

8.8

     

-

     

25.7

     

26.8

     

-

     

21.5

     

-

     

48.3

     

(22.6)

     

(46.8)

%

Viberzi®

 

-

     

49.8

     

0.4

     

-

     

50.2

     

-

     

48.9

     

0.6

     

-

     

49.5

     

0.7

     

1.4

%

Namzaric®

 

-

     

20.2

     

-

     

-

     

20.2

     

-

     

22.6

     

-

     

-

     

22.6

     

(2.4)

     

(10.6)

%

Teflaro®

 

-

     

38.1

     

3.7

     

-

     

41.8

     

-

     

30.0

     

-

     

-

     

30.0

     

11.8

     

39.3

%

Dalvance®

 

-

     

26.4

     

2.4

     

-

     

28.8

     

-

     

17.3

     

1.0

     

-

     

18.3

     

10.5

     

57.4

%

Avycaz®

 

-

     

30.7

     

-

     

-

     

30.7

     

-

     

24.6

     

-

     

-

     

24.6

     

6.1

     

24.8

%

Kybella® /Belkyra®

 

6.3

     

-

     

0.8

     

-

     

7.1

     

7.2

     

-

     

1.0

     

-

     

8.2

     

(1.1)

     

(13.4)

%

Other Regenerative Medicine

 

28.0

     

-

     

1.4

     

-

     

29.4

     

29.8

     

-

     

1.4

     

-

     

31.2

     

(1.8)

     

(5.8)

%

Other Promoted Products

 

1.7

     

-

     

(4.9)

     

-

     

(3.2)

     

5.6

     

-

     

5.1

     

-

     

10.7

     

(13.9)

     

(129.9)

%

Total Promoted Brands & Brands with Ongoing Exclusivity

 

1,431.5

     

1,247.2

     

789.7

     

-

     

3,468.4

     

1,385.7

     

1,011.0

     

750.6

     

-

     

3,147.3

     

321.1

     

10.2

%

Restasis®

 

309.0

     

-

     

18.7

     

-

     

327.7

     

325.0

     

-

     

16.6

     

-

     

341.6

     

(13.9)

     

(4.1)

%

Asacol®/Delzicol®

 

-

     

8.5

     

8.9

     

-

     

17.4

     

-

     

27.9

     

10.7

     

-

     

38.6

     

(21.2)

     

(54.9)

%

Rapaflo®

 

2.0

     

-

     

2.5

     

-

     

4.5

     

18.9

     

-

     

1.8

     

-

     

20.7

     

(16.2)

     

(78.3)

%

Canasa®/Salofalk®

 

-

     

7.5

     

4.7

     

-

     

12.2

     

-

     

38.8

     

4.5

     

-

     

43.3

     

(31.1)

     

(71.8)

%

Saphris

 

-

     

36.3

     

-

     

-

     

36.3

     

-

     

36.8

     

-

     

-

     

36.8

     

(0.5)

     

(1.4)

%

Other LOE/ Risk

 

-

     

10.7

     

-

     

-

     

10.7

     

-

     

28.3

     

-

     

-

     

28.3

     

(17.6)

     

(62.2)

%

Total LOE/Risk

 

311.0

     

63.0

     

34.8

     

-

     

408.8

     

343.9

     

131.8

     

33.6

     

-

     

509.3

     

(100.5)

     

(19.7)

%

Aczone®

 

2.5

     

-

     

-

     

-

     

2.5

     

0.6

     

-

     

0.1

     

-

     

0.7

     

1.8

     

257.1

%

Other Divested

 

10.5

     

-

     

0.1

     

-

     

10.6

     

4.0

   

5.2

     

0.1

     

-

     

9.3

     

1.3

     

14.0

%

Total Divested

 

13.0

     

-

     

0.1

     

-

     

13.1

     

4.6

     

5.2

     

0.2

     

-

     

10.0

     

3.1

     

31.0

%

Total Brands facing LOE Risk/Divested

 

324.0

     

63.0

     

34.9

     

-

     

421.9

     

348.5

     

137.0

     

33.8

     

-

     

519.3

     

(97.4)

     

(18.8)

%

Skincare

 

44.6

     

-

     

4.2

     

-

     

48.8

     

40.4

     

-

     

3.6

     

-

     

44.0

     

4.8

     

10.9

%

Liletta®

 

-

     

22.5

     

-

     

-

     

22.5

     

-

     

14.6

     

-

     

-

     

14.6

     

7.9

     

54.1

%

Armour Thyroid

 

-

     

57.4

     

-

     

-

     

57.4

     

-

     

53.4

     

-

     

-

     

53.4

     

4.0

     

7.5

%

Savella®

 

-

     

21.5

     

-

     

-

     

21.5

     

-

     

23.6

     

-

     

-

     

23.6

     

(2.1)

     

(8.9)

%

Other Products Revenues

 

21.1

     

199.1

     

88.9

     

1.4

     

310.5

     

34.2

     

158.3

     

82.2

     

2.8

     

277.5

     

33.0

     

11.9

%

Total Other

 

65.7

     

300.5

     

93.1

     

1.4

     

460.7

     

74.6

     

249.9

     

85.8

     

2.8

     

413.1

     

47.6

     

11.5

%

                                                                                               

Total Net Revenues

$

1,821.2

   

$

1,610.7

   

$

917.7

   

$

1.4

     

4,351.0

   

$

1,808.8

   

$

1,397.9

   

$

870.2

   

$

2.8

     

4,079.7

   

$

271.3

     

6.6

%

 
 

 

 

 

 

Twelve Months Ended December 31, 2019

   

Twelve Months Ended December 31, 2018

   

Movement

 
 

US

Specialized

Therapeutics

   

US

General

 Medicine

   

International

   

Corporate

   

Global

   

US

 Specialized

Therapeutics

   

US
General

Medicine

   

International

   

Corporate

   

Global

   

Global

Change

   

Global

Change

 Percentage

 
                                                                                               

Botox®

$

2,730.5

   

$

-

   

$

1,060.8

   

$

-

   

$

3,791.3

   

$

2,545.8

   

$

-

   

$

1,031.6

   

$

-

   

$

3,577.4

   

$

213.9

     

6.0

%

Juvederm® Collection

 

587.5

     

-

     

656.1

     

-

     

1,243.6

     

548.2

     

-

     

614.8

     

-

     

1,163.0

     

80.6

     

6.9

%

Linzess®/Constella®

 

-

     

803.2

     

23.8

     

-

     

827.0

     

-

     

761.1

     

24.1

     

-

     

785.2

     

41.8

     

5.3

%

Lumigan®/Ganfort®

 

269.2

     

-

     

360.8

     

-

     

630.0

     

291.8

     

-

     

392.6

     

-

     

684.4

     

(54.4)

     

(7.9)

%

Bystolic® /Byvalson®

 

-

     

600.6

     

2.1

     

-

     

602.7

     

-

     

583.8

     

2.0

     

-

     

585.8

     

16.9

     

2.9

%

Alphagan®/Combigan®

 

360.0

     

-

     

162.0

     

-

     

522.0

     

375.4

     

-

     

176.0

     

-

     

551.4

     

(29.4)

     

(5.3)

%

Eye Drops

 

230.4

     

-

     

235.8

     

-

     

466.2

     

202.7

     

-

     

279.7

     

-

     

482.4

     

(16.2)

     

(3.4)

%

Lo Loestrin®

 

-

     

588.9

     

-

     

-

     

588.9

     

-

     

527.7

     

-

     

-

     

527.7

     

61.2

     

11.6

%

Breast Implants

 

254.4

     

-

     

0.6

     

-

     

255.0

     

263.0

     

-

     

130.1

     

-

     

393.1

     

(138.1)

     

(35.1)

%

Viibryd®/Fetzima®

 

-

     

412.1

     

11.4

     

-

     

423.5

     

-

     

342.4

     

7.2

     

-

     

349.6

     

73.9

     

21.1

%

Alloderm®

 

395.9

     

-

     

7.9

     

-

     

403.8

     

407.3

     

-

     

8.0

     

-

     

415.3

     

(11.5)