Core Products Drive Allergan Growth
Posted on July 31, 2018 by Medtech[y] Staff
Allergan announced a solid Q2 earnings last week, driven by their core products and Medical Aesthetics line.
- Revenues came in at $4.12 billion, up 2.9% from Q2 2017.
- EPS came in at $4.42 per share.
- Allergan Board of Directors Authorized a $2.0 Billion Share Repurchase Program.
- Allergan's core business helped lead the way by growing 10.2% in Q2.
Allergan's Botox (cosmetic) drove sales of $236.5 million, up 12.5% year over year. Botox Therapeutic revenues were $404.7 million, up 16.7%.
During the Q2 earnings call with investors, William Meury, had this to say about the company's core products:
"We had a very solid quarter with double digit sales growth for most of our major products in our four main businesses. As Brent mentioned, sales for our 10 key products increased 10% or more versus prior year. Botox, Vraylar, CoolSculpting, Juvederm and Linzess are at the top of the list and were standouts in the quarter."
Meury continues, "we had a very strong quarter in all three areas of Medical Aesthetics, including facial, body contouring and plastics and regenerative medicine. As anticipated, sales levels and growth rates for Botox Cosmetic and Juvederm accelerated from the first quarter. The growth rate for Botox was 13% and for Juvederm was 11%. Both products have been on a solid growth trajectory and the outlook for the second half of the year, domestically and internationally, is excellent. We'll talk in more detail about our plans for both products at our Medical Aesthetics Analyst Meeting in September.
In terms of CoolSculpting, sales were up 36% versus prior year or up 11% on a pro forma basis. The year-over-year comparison here is being impacted by higher sales associated with the 2017 launch of a new applicator. U.S. consumable sales, which is the best measure of the health of this business grew 19% and U.S. system sales excluding applicators grew 21%, both on a pro forma basis. U.S. system placements for the third consecutive quarter were strong and reached an all-time high of 349, laying the foundation for sustained consumable growth. Our investments in an expanded field force and national and local advertising initiatives are producing solid returns.
There were concerns during the quarter as sales of Restasis declined 5.4% to $318.2 million in the quarter.
Allergan raised its earnings and sales guidance for 2018 to an approximate range of $15.45-$15.60 billion compared with the earlier forecast of $15.15-$15.35 billion.