Allergan's Q4 earnings best expectations on back of US sales
- Allergan's reported net revenue for Q4 2015 increased 74% to $4.2 billion compared with Q4 2014, beating consensus estimates of $4.18 billion.
- Sales of Botox and the dry-eye drug Restasis led the way, respectively earning $655.7 million and $364.6 million globally. US brands did particularly well in Q4, increasing 37.5% compared to the same period a year ago.
- However, the company had an overall net loss for the quarter of $700.5 million, slightly improved from Q4 2014's loss of $732.9 million.
After a string of successfully integrated acquisitions, Allergan is prepping for its $160 billion mega-merger with Pfizer. Allergan is technically buying Pfizer in a reverse merger, which will see the combined company taking up tax-residence in Ireland.
Separately, the generics giant Teva is working toward closing its $40.5 billion acquisition of Allergan's generics portfolio. Last week, Teva offerred concessions to EU regulators to help allay anti-trust concerns.
The company ascribed its large amortization expenses (in GAAP results) to the acquisition of Allergan by Actavis (the combined company retained Allergan's name). The $1.6 billion in amoritization expense weighed on its net revenue.
At the moment, Zack's still has a hold on Allergan; however, the company just announced that "that could definitely change following the company's earnings report which was just released." Allergan's earnings beat strongly positions the company ahead of the closing of its merger with Pfizer, expected in the second half of 2016.